When doing your taxes, you deduct the expenses you spent for advertising from your income, right? I'm almost certain this is true because I don't see how marketing would work then, but just would like some re-assurance. Thanks.
Taxes
- Thread starter Chrisvon637
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Yes you only have to pay taxes on the profit which is revenue - costs, so you get to include anything that you had to pay for to get that revenue.
Take all of you operating expenses (advertising, phone, car, internet, computer purchases, etc, etc, if it can apply to business at all, it's a right off, even dinner and drinks in certain situations), then subtract your operating expenses from your total revenue (that = your profit = all you pay taxes on).
Also, you'll get tax breaks if you file an LLC or Sub S and employ yourself through your company (in the future). If you are a sole proprietor then you'll probably get hit with self income tax. That sucks, extra 15% in Missouri, wont make that mistake again.
Also, you'll get tax breaks if you file an LLC or Sub S and employ yourself through your company (in the future). If you are a sole proprietor then you'll probably get hit with self income tax. That sucks, extra 15% in Missouri, wont make that mistake again.
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