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Health Help Llc

Posted in Uncategorized | August 27th, 2011

health help llc
Small business questions – Please help!?

I just started a small business. I filed for my LLC at the beginning of March – got my EIN and business insurance. I will be filing as a sole proprietor for taxes and I do not have any employees. If I get health insurance for myself and my son (I am not married) can this be a business expense? What about contributions to 401K? I have very little expenses and will show a profit at the end of the year.
Also, I need to pay quarterly taxes. Do I pay taxes on my gross invoices or after all my deductions and expenses?
Thanks in advance for all your advice.
Right now I am well on my way with my business as we speak. And yes I will be filing as a sole proprietor since I do not have any employees.

Health insurance – tax deductible on 1040, line 29 (for tax year ending 2009). See instructions.

401k plan – set up your own “Solo 401k Plan”. You can contribute up to $49,000 / year ($54,000 if over age 50). Fidelity Investments has a fine “self employed 401k plan”.

Estimated taxes are based on net taxable income for each quarter. A rough estimate is 35% of gross revenue to be safe.