Thursday, November 15, 2007

The Tax Man Cometh!!

First of all I would like to give a big shout out to MICHELLE - I hope New Baby Girl and Mom are doing well.

After a volatile January we are trying to continue to kick ass in Feb.

I have five big things going on right now: My Main Job, My "Big" Website idea, two inventions I'm trying to bring to market and my Truck Washing Business.

My main job and truck washing business have been getting most of my attention because money from these endeavors is what I have been pouring into the others. I am all risk right now. No savings; only investing. The risk is minimized because I'm betting on myself.


Well my business had a great year; so I figured I better legitimize things and get an accoutant.

First of all - Do you know how much a good accountant costs? How about $300 per hour? The actual write up work and tax preparation stuff can be done by a lessor member of an accountant firm, but the consultation and prep is typically done by a partner. All news to me.

Second of all - Do you know how important each and everything you put into and pull out of your business account is. Very important.

The first thing he told me was, "If you want to go to jail, Then Keep Doing What you are doing". He said you are more likely to get away with killing someone then not paying your taxes.

I told him to do whatever he needs to do to get me right. I brought in my huge "Timberland" box of records and printouts from Quickbooks. 16 hours later, he had my 2005, 2006 and almost 2007 taxes done. That's right I haven't filed business taxes in 3 years. "How could someone that is so smart be so stupid?" That is the same thing my accountant asked.

It's because I'm thiking survival! Who cares about taxes if you aren't even going to be in business.
When you have no money - you have no choice. Now I have a huge Accountant Bill, and three huge IRS bills.

To maintain everything on the Up and UP so to speak, I had my accountant set up a payroll service. He then tells me that I should set up a check for myself twice a month. This means that I have to pay myself a check, pay taxes on that income, have the business pay taxes on that money and then put the money back into the business.

How sick is that.

When it's all said in done I have a huge problem. THE TRUCK WASHING BUSINESS IS IN THE RED!.....Again.

My first order of business is getting more customers. I haven't had this problem in a long time. The days of me printing brochures at home, searching for addresses in Yahoo Yellow pages, and printing labels and folding are long gone. I contacted three agencies and I am waiting for a quote.

So the bad news - All savings and business savings have been exhausted to the tune of slightly under $20,000.

The good news - Your boy is not going to jail. It appears that Wesley (Snipes) was aquitted too.

So not only do you get more blogging but you might get Blade 4!

Gotta Run - there's much work to do.


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