To get an accountant or to not 🥀 (questions not answered from webinar today)

also, I’m bringing my husband into the business for these product orders, soooo do i pay him? how would that work/whats more beneficial?

Hi Kendra! 

The best indicator to knowing when to outsource help would be when it feels incredibly overwhelming and confusing that you’re putting it off or you don’t have time for it (better yet, know that your time is better spent on revenue generating tasks that move the needle forward in your business). If you realize that not having the help of an accountant is costing you more money than having a professional who can make sure every T is crossed and every I is dotted, then it may be a good time! 

That’s exciting! 

The first thing to consider is how you’re structured as business structure impacts tax liability. However, assuming you’re an LLC, annual tax wise, the total income from both your services and products will be combined and reported as gross income on your tax return via a Schedule C, subject to income tax and self-employment tax. 

As far as product sales go, you may have to charge, and most importantly remit, sales tax payments to your state monthly or quarterly. If these are digital products, I would recommend contacting your state to see if you have to charge sales tax or not. 

Regarding your husband, I would consult with a CPA or tax accountant who can dive deeper into your financials and household/business specifics to see what would be most advantages and cost effective. You could put him on payroll but that would come with payroll obligations among other things, so just consult with a CPA or tax accountant as to what that’ll look like for you both. 

Amazing, thank you Geily!