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Thread: Reporting Income for StartUps

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    Default Reporting Income for StartUps

    Question on how to report income when you're just starting off a business. I didn't file taxes last year and I'm starting a business this year. When I'm filling out applications (for example health insurance plan application) that asks for income, what do I put? Would it be the average income for the same business startups? Would it be my projected income on my business plan?

    Thanks.

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    Welcome to the forum LotsOf?s.

    I suppose it could depend on the specifics of the form, but in general you should report your actual income and not make something up. You mentioned a health insurance plan application. If that's the form you're struggling with, could you post the exact question.

    If the form is asking for how much you expect to make in the coming year, I think it's reasonable to come up with your best estimate and use that number. If the form is asking for how much you made during a specific period of time in the past, then you should be honest, even if that means $0.

    Trying to estimate future earnings is difficult, especially when you're just starting and you have no real numbers. In that case do your best. I'd probably estimate on the conservative side too.

    If you don't mind posting the exact question you're struggling with, it will probably be easier for us to get you a better answer.
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    Thanks for your reply, vangough. I thought I've replied to this post.

    I'm moving into a new state from another country which means I'll be applying for a new house lease, car lease and anything else you can think of. I guess for now, it's mostly that.

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    I would recommend that you consult an accountant - In Canada as a registered business - the corporation would need to file taxes. As for the book keeping it should be taken care off by the accountant - including expenses, purchases, sales, etc...

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    Quote Originally Posted by LotsOf?s View Post
    Thanks for your reply, vangough. I thought I've replied to this post.

    I'm moving into a new state from another country which means I'll be applying for a new house lease, car lease and anything else you can think of. I guess for now, it's mostly that.
    For those types of leases I think your credit score will be more important. Unless they want income verification just put your estimated "self employment" income. Other than mortgages I don't think I ever had to verify income. Is this in the U.S. or Canada? Income for US healthcare, depending on state, is probably to see if you qualify for a subsidy.

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    Thanks, oceanit.ca!

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    Quote Originally Posted by Paul View Post
    For those types of leases I think your credit score will be more important. Unless they want income verification just put your estimated "self employment" income. Other than mortgages I don't think I ever had to verify income. Is this in the U.S. or Canada? Income for US healthcare, depending on state, is probably to see if you qualify for a subsidy.
    Thanks, that's what I was looking for.

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