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Thread: New business in WA state... lots on my mind.

  1. #1

    Default New business in WA state... lots on my mind.

    I'm starting a new automotive repair shop and not sure what types of taxes for sure I need to pay. I know that every sale I do is going to have sales tax. I know that I will have to pay quartly taxes but how do I know what that amount is going to be my first year? I have quick books pro 2016 desktop for my company and I have been reading that it works pretty good with turbo tax. I have not used turbo tax being I like h&r block. Any tips about using turbo tax with quickbooks? I have been saving every recipet to input in to quickbooks. Thank u for taking the time to read this.

  2. #2
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    MyITGuy's Avatar

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    Your talking about two different items.

    1st - Sales Tax - If you have Quickbooks setup properly (Along with your point of sale or etc) - Then you can use the reports built into this product to pay your local/state governments for the sales tax you collected on their behalf
    2nd - Income Tax - This is where you will utilize TurboTax to import your P&L Statement (Or work with an accountant) to report your company income and pay any associated Federal/State taxes on this income and/or generate any forms needed for shareholders/members to report the income on their personal taxes.

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    So quarterly taxes are just taxes taking from sales? does quickbooks have it built in somewhere to see quarterly taxes?

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    Hi. I'm in WA state too. I also own a service business. You'll pay sales tax on your retail services. This is through the DOR (dept of revenue). They'll decide, based on your gross sales each year, whether they want you to pay it yearly, quarterly or monthly. You've probably already done this by now, but create an account on their site because that's where you'll go each time to enter in gross sales and make the payment. You don't do this through QB. You record the payment through QB, but you actually file and make the payment on the DOR site.

    If you hire workers, you MUST classify them as employees and pay employment security (unemployment insurance) and worker's comp to the state AND payroll taxes to the IRS. WA state audited tons of small businesses a few years ago and basically got after anyone who was classifying workers at Independent Contractors. They want everyone classified as employees, so be very careful about hiring a new worker.

    Just to be safe, you may want to hire a tax accountant to make sure you have QB set up properly and all of your tax accounts set up for filing and payment. I should have done that, but after several audits, I'm set up properly now. Hope that helps.
    Owner of Deckhand Detailing (yacht detailing services) in Seattle - since 1990.
    Check out my book "The Insider's Guide To Boat Cleaning and Detailing" on Amazon.com.

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