How do I figure my Taxes from my bulk Vending income?

[BanderSnatch]

I have been doing bulk vending for about 1 year, but not seriously. With about 7 locations & now I am getting serious. I just got my business license & I want to do it the right way.I have my business bank account, & I bought Quick books etc..

Now what I want to do is, when I collect from my machines. I want to calculate all the tax & put it aside, so that I don't spend it.

Example, if I get $1,000 from my machines,

I want to say: Ok, so $80 is sales tax. (I pay 8 cents on the dollar for sales tax)

So put that aside (don't spend it)

And the other taxes I'm supposed to pay

State tax

Federal tax

Social Security

Medicare

How do I figure out what all that stuff is? is there a percentage for each one & I just do the math on it? Or is it not that simple? I'd really like to figure it out each time I receive income, so I can just put it aside for the tax people. & when they want to collect it, I have it all ready for them, & It's There. I don't want to spend that money & than have to cough it up at the end of the year.

Thanks guys. I got quickbooks too, so maybe there are some tools on there that can help me with this.

thaks!

[joebob051977]

It isn't that simple. There are lots of deductions and other things to claim such as depreciation. Granted, I have not done any of that. I ensure I make no profit by reinvesting 100% into my business. I'm not prepared to pay an accountant yet. But I might consider it soon.

I'd like to remind you that this is a business of pinching pennies, and don't spend money unless you absolutely have to. Every dollar you spend is one less you coud've used to buy a machine. It is very important in the beginning when you are trying to grow your business. As T-Bird said, have a look around here, and welcome, you will find the answer to most of your answers if you try the search.

[joebob051977]

You need to check your state and local laws concerning sales tax. I am able to stay tax free for bulk vending up to 50 cents

[T BIRD]

You need to check your state and local laws concerning sales tax. I am able to stay tax free for bulk vending up to 50 cents

I was just thinking about this on the way home.  I dont pay tax on 25 or 50 cent vends either.  But what happens with a 75 cent capsule?  Or a 1.00 capsule?  Hmmmmmmmmm. Gotta call Dr. Foltz.

[alyssamma]

The above posters are correct. In *most* states, there is no sales tax on bulk machines.

However, to answer your question, it is like this...

Business Income = $X

Business Expenses = $Y

X = all of the quarters you collect.

Y = everything you spend to collect the quarters. This is bascially, but not only: machines (no need to depreciate), candy, gas, non-personal income taxes, payroll, etc.

Taxes

- Federal, State (and possibly local) paid on your personal 1040. You simply use a schedule C (assuming single person LLC or sole prop - K1 otherwise) and record $X - $Y as additional income.

- Soc Sec/Medicare - Paid on whatever salary you paid yourself if an S-Corp, or $X - $Y if a sole prop.

- State and Fed Unemployment - Paid on whatever salary you paid yourself if an S-Corp. Not 100% sure how this is calculated for a sole prop - I don't believe any is paid, but Google it

- If you are an S-Corp, there may be state corporate taxes you need to pay - this varies by state.

Tell us what state and city you are in + what type of business entity you have and you'll get more specific answers...

Kevin