“I earned a total of 10000 on a job is this considered a business and if so should I have gotten a liscense or is there some other way I file taxes?”----> Different types of businesses and industries have unique requirements for business licensure, and the state and local governments also play a role in what types of licenses will be required for you to start a business. So, I guess you need to contact your county for sure; as long as you are engaging in business, then you are required by local, state or federal law to be registered as a business. The type of business that you run determines what type of business license you need. Begin by checking with your county to find out what the business regulations are. If your city does not require a business license, your state likely will. Most small businesses are required to have only local business licenses. Larger businesses, businesses that deal nationwide and international companies, however, usually are required to have a greater level of licensing. Certain businesses need both city and state business licenses, such as food service businesses, contractors, dentists, and social workers. Check with your state/County/local govt. to find out whether you are required to have a state business license to operate. As long as you are engaging gin business, as a self employer, you need to file Sch C of 1040 if the amount on Sch C line 29/31 is $400 or exceeds $400. ALSO, you need to pay self employment taxes as long as the amoun ton Sch SE line 4 is ALSO $400 or exceeds $400; 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% (10.4% for Social Security and 2.9% for Medicare). The Temporary Payroll Tax Cut Continuation Act of 2011 extended the self-employment tax reduction of 2% for calendar year 2012 so the rates for 2011 remain in effect for 2012. For self-employment income earned in 2010, the self-employment tax rate is 15.3%. The rate consists of two parts: 12.4% for social security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance). if you are filing as a sole proprietor 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.If you are filing as a corporation you generally have to make estimated tax payments for your corporation if you expect it to owe tax of $500 or more when you file its 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. |