USA Sole Proprietor Tax Questions

Aug 4, 2012
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Alright, I have some question about opening a small business as a sole proprietor.

I am trying to write a business plan to open up a Hobby Store. I know what I need to know about ordering product, and setting up the store and getting a DBA, but after that I am lost, and want to know exactly what I am getting into before I start.

I will be running this business, doing most of the work with slight assistance from my wife. I will be doing business out of Kirksville, Mo (just on the of chance someone knows local tax laws as well, I have been trying my best to research these as well.)

Now, I have tried to figure things out on the IRS website, and need things explained to me in simpler terms.

I have read if it is my spouse who is working with me, I don't have to pay her a separate salary, thus saving me on taxes, is this true? Also, how do I figure out how much money to tax from my income? I have heard about quarterly estimated taxes, but I would prefer to pay monthly or yearly if possible.

What forms would you expect I would need to fill out, and learn the laws around? I would like to hire an accountant to help me eventually, I just want to figure out how much money I will be "losing" to taxes every month, so that I can figure out my profits more accurately for my business plan. Any help and advice is EXTREMELY appreciated!


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