USA Business registration and tax help


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Hello,

I came to the US two years ago and overstayed my work visa. After I met my husband and he helped me to start a party business. We provide face painting, balloons etc for private parties and community events. I've never hired anybody, my husband and my stepdaughter are helping me out. I deposited cash, checks and transferred money to my and later my husband and my joint bank accounts. Now I'm in the process of status adjustment but still haven't gotten my work permission (though I have SSN) and I would like to know more about business registration and tax information. I've never dealt with any of these matters in my life so I did some research but it got me even more confused. I have a list of questions and would really appreciate any help!

1. Should I register as a sole proprietor, independent contractor or LLC? What would be better for my party business and for taxes? I'm planning to hire people and to expand my services with rentals and probably an online retail store with party supplies.

2. I get most of my customers from a specializing website who gives vendors space to advertise their services. I did a research and found an article where CPA was talking about business on Etsy. His point was that if the seller doesn't make $20 000 or 200 transactions a year, this income is excluded from taxes. I would like to know if that's true and it applies to my business as well.

3. From what moment should I claim my income: 1 - the first time I got paid and deposited money on my bank account; 2 - the date I got married and deposited money to our joint bank account; 3 - the moment I get my work permission; 4 - the moment I register the business and get a tax ID?

4. Should I claim absolutely all income or only checks and transfers from my Paypal account?

5. How do I pay taxes as a business owner and a self-employed person? I live in TX and I googled that there are no state income tax? What does it mean? What other taxes should be paid?

6. What can I deduct from my taxes? I use my car to commute so can I deduct car insurance and car parts from my taxes? If after registration of my business, I decide to hire my husband and my stepdaughter, can I deduct their salary? Can I deduct my own salary?

7. I was buying supplies but don't have receipts. Can I provide debit and credit card statements showing those charges? Also, if I provide an invoice for the event and a bank statement with a purchase date and amount, can I still deduct it? For example, gas or meals we bought? Also, I have emails with receipts for online purchases of my supplies, do they count?

I'm also planning to open an online print store after I get everything legal with my party business.

8. How should I register online print store business? I found out that some sellers just get a sale permit. Should I apply for it or register as another sole proprietor (not sure if it's even possible) ?

Thank you for your time and patience! I'm looking forward to hear from y'all :)
 
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AGH the CPA

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Honestly, you need to hire a local CPA to help you. All of those questions are super important and the answers are very much based on your own personal situation.
 

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