“If I have to start a complete office based business set up of any kind then what will required regarding taxation and any other things involved,I am completely unaware and your help will be good for me .”-->It depdns on the many situations; for example, when you start your business, you need to treat all eligible costs you incur before you begin operating the business as capital expenditures which are part of your basis in the business. Generally, you recover costs for particular assets through depreciation deductions. However, you generally cannot recover other costs until you sell the business or otherwise go out of business. You can deduct a limited amount of start-up and organizational costs( $5,000 respectively; as far as I know you need to incorporate your business as either S- or C –corp to claim your organization cost, but without incorporating your business you can still claim startup costs). The costs that are not deducted currently can be amortized ratably over a 180-month period. The amortization period starts with the month you begin operating your active trade or business. You are not required to attach a statement to make this election. Once made, the election is irrevocable. Organizational costs include the following fees:Legal fees for services incident to the organization of the partnership, such as negotiation and preparation of the partnership agreement. Accounting fees for services incident to the organization of the partnership filing fees. A partnership, I mean MMLLC or LLP, can amortize an organizational cost only if it meets certain tests.Start-up costs are amounts paid or incurred for creating an active trade or business; or investigating the creation or acquisition of an active trade or business. Start-up costs include amounts paid or incurred in connection with an existing activity engaged in for profit; and for the production of income in anticipation of the activity becoming an active trade or business. Start-up costs do not include deductible interest, taxes, or research and experimental costs. As a sole proprietor, you can deduct, as your business expenses, taxes, insurance, rent expense,advertising, interest or etc. on 1040 Sch C.As a selfe ployed, you must file Sch C and as long as the amount on Sch SE line 4 is $400 or exceeds $400, you must pay selfemploment tax; Self-employment tax is a tax consisting of Social Security and Medicare taxes primarily for individuals who work for themselves. It is similar to the Social Security and Medicare taxes withheld from the pay of most wage earners. The 2010 Tax Relief Act reduced the self-employment tax by 2% for self-employment income earned in calendar year 2011. The self-employment tax rate for self-employment income earned in calendar year 2011 is 13.3%.Also you may have to pay quarterly estimated taxes; if you are filing as a sole proprietor, partner, S corporation shareholder, and/or a self-employed individual, you generally have to make estimated tax payments if you expect to owe tax of $1,000 or more when you file your return.However, you do not have to pay estimated tax for the current year if you had no tax liability for the prior year; you were a U.S. citizen or resident for the whole year;your prior tax year covered a 12 month period.
Please visit the IRS Websites here;
Business Expenses http://www.irs.gov/pub/irs-pdf/f1040sc.pdf Self-Employment Tax (Social Security and Medicare Taxes) Estimated Taxes
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