Business Advise Needed Pt. II

[tmax]

Thank you, thank you for all your inputs.
These stuffs are Gold.
I have one more question(maybe flowersource
could answer this one)
So, what do I have to have to qualify to take the advantage when it comes to TAX. Would it be reseller's permit(registration)?

I DO have a full time job and I'm a one-man web creator at night.
Would it be even possible for me to upgrate my computer and write it up for my business expense? I'm using 75Mhz computer right now.

If anyone has any kind of suggesions & advises please reply.
Maybe there are stuffs that I have to know or be careful about.
God bless.

[Jacob Stetser]

As far as I know...

Unless you're actually reselling a tangible, physical product, there are no taxes to cut down (software, however, is a tangible product).

Services have no sales tax, at least in the states I've lived in.

What sort of things are you interested in reselling?

[tmax]

Thank you for your respond.

I'm planning to sell CDs and other promotional band products along with the ad spaces. My main goal is to promote musicians and make deals with the entertainment industris all over the world.

I just want to come up with some kind of idea of what I'm getting into.
Thanks.

[flowersource]

Lets assume a hypothetical situation:
I own a flower shop that has "gross sales" of $30,000 per month/$360,000 per year.

I have a retirement income of $30,000 per year.

Each month, I hand 3 items to my accountant, a (CPA)
1. A folder containing all of my daily sales records for the month.
2. A folder containing all of my expenditures for the month (ALL=payroll,lease,utilities,taxes,office supplies,repairs,insurance etc...)
3. My bank statement(s)

Lets say at the end of the year, the total expenditures add up to more than the total "gross sales" lets say, ummm $375,000.

When he computes my taxes (simple example) total income is $360,000 + $30,000 =$390,000 "gross income for the year".
Continue...$390,000 - $375,000 = $15,000 "taxable income"
This is a simple example of how it works for a sole proprietorship business.

Hope this helps,
Mike