Tax's are killing my buisness!

[tranzit]

I have a buisness that is kind of a side thing my wife and i are working on.
Aftermarket car parts.. susp, superchargers.. body kits ect.. i am going to be doing most of my stuff online. We will have a storefront.. as we are forced to in order to get products from most of the people we want to carry.. along with 200k in initial starting orders.. this is adding up fast.. and to top it off every state and city offfical is getting ahold of me for various licences taxes.. ect.. its rediculas.. no wonder so many people are on ****ing welfare.

[damiongage]

most people on welfare do not have 200k to drop on a side business venture

[Logan13]

most people on welfare do not have 200k to drop on a side business venture

lol, true

[spywizard]

just don't pay yourself much of an income.. take your money as a dividend, that way you don't pay income tax, state, or fed.. you will pay capital gains 15%..

and that aint bad

[tranzit]

Ohh trust me i dont have that cash laying around.. this is all loan.

[Logan13]

I have a buisness that is kind of a side thing my wife and i are working on.
Aftermarket car parts.. susp, superchargers.. body kits ect.. i am going to be doing most of my stuff online. We will have a storefront.. as we are forced to in order to get products from most of the people we want to carry.. along with 200k in initial starting orders.. this is adding up fast.. and to top it off every state and city offfical is getting ahold of me for various licences taxes.. ect.. its rediculas.. no wonder so many people are on ****ing welfare.

Well, the first thing that I would say is that you started with too much overhead (200k?) As for your various licences, which ones are you refering to? Start small and grow from there, work your suppliers for minimum orders and for extended terms. If they won't give it to you, find ones that will. EVERYTHING is negotiable.
As for the taxes, the depreciated value of 200k in inventory should over-ride any taxes due.....Everyday that inventory sits, it loses some value since your money was tied up and not genorating a return. I always tell people that if you can not afford a lawyer and an accountant, you cannot afford to be in business. The gov't will give you 3 years in the red before they truely expect to see a profit from a small start-up business.
Also look for gov't programs, there are many out there to aid small businesses. Make your wife the owner and take advantage of her "minority" business owner status. Doors will open up for you.
That will be $500, please.

-Logan13

[bmgmnh]

The IRS sucks, no two ways about it.

[TheMudMan]

Well, the first thing that I would say is that you started with too much overhead (200k?) As for your various licences, which ones are you refering to? Start small and grow from there, work your suppliers for minimum orders and for extended terms. If they won't give it to you, find ones that will. EVERYTHING is negotiable.
As for the taxes, the depreciated value of 200k in inventory should over-ride any taxes due.....Everyday that inventory sits, it loses some value since your money was tied up and not genorating a return. I always tell people that if you can not afford a lawyer and an accountant, you cannot afford to be in business. The gov't will give you 3 years in the red before they truely expect to see a profit from a small start-up business.
Also look for gov't programs, there are many out there to aid small businesses. Make your wife the owner and take advantage of her "minority" business owner status. Doors will open up for you.
That will be $500, please.

-Logan13

LOL @ That will be $500, please.

good advice

[tranzit]

The companys are large companys not mom and pop chains so negotiation with them on starting orders is a fruitless venture. The 200k will yeld 20-30% gross profit even at a low sell price. All starting orders are things that pretty much sell themselfs and only allow me to get access to order anything i want for the rest of the time i am in buisness with these people. 200k covers 55 diffrent companys, Parts for two project cars for advertising . Also covers a year on our lease, phonebills, internet, apon looking at what i typed i didnt mean to say the 200k was just for product.. although most of it is. this is my entire buisness loan from advertisment to well pretty much everything. My overhead looks very high right now but i assure you it will all be gone very quickly as the main buisness is over the internet and i know my product top to bottom. BTW all AR bros can expect a discount =) well except nark and K! just kidding.. ill hook them up too.... but really the point of this rant was the rediculas things i am getting dinked on by the state and city.

[needmorestrength]

you just need to hang in.. initial costs are the worst part.. the first year is crucial!!

[tranzit]

And my wife is a lawyer so that part is covered free of charge.. and ill leave the math to her and our computer program lol... every penny we make for taxes will go into a savings account.. also we will not be paying ourself anything out of the profit of the buisness untill we have paid the loan back and are doing well. this is for later not now. We want to retire around 50 and have no worries as both our retirements are good and we have good 401k's going as well it is still not enough. so were trying to do whatever we can. This is buisness #1 if all goes well 1 1/2 from now we will open a second.

[tranzit]

I am hireing my brother in law to run the shop the days i am working. I work 3 days a week most weeks sometimes more if i am covering shifts of on call. so it should work out well. im very excited.

thanks for the posative coments bro!

[spywizard]

you should have started the company in vegas... no taxes, and it is an import/export zone..

good luck

[oldman]

Welcome to the world of self-employment. I have been shelling out money to the IRS each year for the past 5 years.. I did a quick scan of my year end taxes and I owe about $10,000 in income tax.. I try to spend everything I can each year as reinvestments into the business but this year was a good year for us so..... Well there goes the manson in southbeach.. well for $10k I might get a box in SB.

Stick with it.. it is all worth the time and effort. I like the freedom of working 18 hours days, every day... never getting vacations, not seeing my family.. Wait.. this sucks!! I should have kept a job and a paycheck


Oldman

[spywizard]

oops too late for last year.. you could make a 1 time deposit to your retirment account,,, i think it is $37,000

then if you need the $$$ you can take a loan out from it, and just pay it back slowly..

[wanna_c_gains]

get into construction and have to add in 32 cents on the dollar for workman's comp insurance..

[I_Want_Abs]

tax's suck ass bro....
good luck with the venture, you say your selling performance parts, i wouldnt mind having a look at your net store when you get it up and running, i am a mechanic and a BIG rev head....you never know i might end up ordering some parts from you my mates are allways ordering from the states

[IBdmfkr]

What's your website Tranzit?

[tranzit]

i have two guys working on it as we speak, i dont know much about html ect but i guess the catalog style i want for the site and data base refrence system is harder then normal.

[tranzit]

launch date and grand opening are set for feb 25th.. "we hope"

[arthurb999]

I thought if you sold online, you were only responsible for sales taxes if you sold to someone in the state you were operating.

[goodcents]

Welcome to the world of self-employment. I have been shelling out money to the IRS each year for the past 5 years.. I did a quick scan of my year end taxes and I owe about $10,000 in income tax.. I try to spend everything I can each year as reinvestments into the business but this year was a good year for us so..... Well there goes the manson in southbeach.. well for $10k I might get a box in SB.

Stick with it.. it is all worth the time and effort. I like the freedom of working 18 hours days, every day... never getting vacations, not seeing my family.. Wait.. this sucks!! I should have kept a job and a paycheck

Oldman

Is that all you work hell get to work. I own 2 businesses and it is work. My state charges me a $100 a year fee just so they can tell me how to run my salon(they can walk in anytime and shut us down for any reason too , has'nt happened, just not really "my" store that way.) I pay city fees and a hundred other damn permit fees.(new people pop up all the time wanting "their" share) fire inspectors, city etc.
Still like it, but hate the bullshlt that gets threw in the way.