Q:
What resources can you suggest to help me learn about tax laws that
apply to me as an independent Web designer?
Laura Pelton Sweet
Beaverton, OR
A:
You're smart to learn about taxes from the outset, as you have
a variety of tax obligations. You have to estimate your federal
taxes (and pay them quarterly) as well as a Self-Employment Tax to
cover Social Security, Medicare, and additional state and local
taxes.
The IRS itself provides a great deal of information. One
pertinent publication is Starting a Business and Keeping Records
(#583)-call (800) TAX-FORM for a print version or download it at
www.irs.gov. The IRS also has a
new Small Business and Self Employed Community section on the site.
You can also call your nearest IRS office for class and workshop
subjects, dates and locations.
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There are many books on small-business taxes, including
J.K. Lasser's Taxes Made Easy for Your
Home-Based Business (John Wiley & Sons) by Gary Carter
and Small Time Operator (Bell Springs
Publishing Co.) by Bernard B. Kamoroff.
States differ on whether the product of a Web designer is
subject to sales tax. In Oregon, you don't have to pay a sales
tax on your work, but in, say, California, the work of commercial
artists and designers is taxable if the client gets title to, or
permanent possession of, hard-copy or electronic media.
Self-employment experts Paul and Sarah Edwards are the
authors of 14 books. Send them your start-up business questions at
www.workingfromhome.com or
through us at Entrepreneur.