Legal Question in Business Law in Illinois
I live in Chicago and I, alone, am starting an eCommerce retail business - selling children's clothing using my website and eBay. I have no clue if it will be profitable. How do you pay estimated taxes on a new business such as this and what type of entity should it be?
Asked on 6/21/11, 10:39 pm
1 Answer from Attorneys
Since you have no profit and loss statement as yet, you should organize your business as a sole proprietorship. The IRS can advise what would be an advisable percentage of profit to reserve for estimated tax purposes. You may not have to collect sales tax unless the sales are intra-state (within Illinois). I would become very familiar with the business deductions available under the IRS code and structure my expense accounts accordingly.
Answered on 7/02/11, 6:27 am
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