hi, I formed a website design firm (formed as a Coporation).
say, if my firm charges $3,000 for a web design job for a client, should I pay tax to the state and federal government? btw, I’m located in New York, U.S.A. If tax is required, should this tax be charged to the client or I should pay it instead?
thank you for your help,
-baoshu
You and your company are separate entities. All financials will be concerned with your company, even your pay. I would also advise a consultation wth an accountant to help set up your books and transaction processes.
Your corporation will pay taxes on that income. You will pay taxes on whatever your corporation pays you. All income is taxable, you would be well advised to hire an accountant to go over your obligations with you.