Starting up business....

[Scottish Mernymph 514]

I've had my own business here in Scotland for the last 14 years teaching Tai Chi Chuan classes, I'm planning on starting up classes once we're married & I'm settled in USA.....does anyone have any advice for me with this please?
Any advice or thoughts very gratefully received thankyou.

[Going through 5,671]

My only advice is to not start up any business in the US until you receive your EAD and SS#.

[Wuozopo 4,293]

3 hours ago, Scottish Mernymph said:

I've had my own business here in Scotland for the last 14 years teaching Tai Chi Chuan classes, I'm planning on starting up classes once we're married & I'm settled in USA.....does anyone have any advice for me with this please?
Any advice or thoughts very gratefully received thankyou.

Check with your state law to know if you must collect state sales tax for your services. Also if there are any requirements to register a business with the state. For example, in my state I don't have to register a business or incorporate, LLP, or such. I do have to collect sales tax on my services and remit to the state comptroller. Each state will have their own rules. 

 

For federal, there is your income tax. You will be self-employed and add Schedule C and SE to your tax return. C is your business profit/loss form.  SE is basically figuring your Social Security and Medicare contributions since you don't have an employer holding those out of each paycheck. And because nobody is withholding income tax, Social Security, and Medicare each paycheck, the IRS expects you to submit quarterly an amount you estimate will cover you for the year. They don't want you to pay it all at the end of the year with your return. If you owe too much at the end, they can assess an additional penalty fee. The goal is to get close. With that said, if you are filing a joint return with your spouse, the IRS considers it one pot of income and one pot of payments in during the year. My wife has an excess amount held out of her income which works out to cover my self employment contributions so I quit sending quarterly estimated payments. The self employed person does not have to submit enough under their specific name as long as the couple (joint filers) cover most of it during the year. The IRS doesn't care if the self-employed underpays as long as the employed spouse over pays enough to cover it. After the first year, you will have a better sense of how that's working out. 

 

 

[Scottish Mernymph 514]

Thankyou so much that's super helpful.