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Advice wanted for grooming on the side!

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  • Advice wanted for grooming on the side!

    I have been grooming friends and families dogs for a little while and would like to venture and do some grooming as a side job. I am new to the laws and regulations and taxes. Do I need to get a business license if I am only doing it on the side? How do I go about paying IRS taxes? I have applied for my sales tax ID and have that but not really sure what to do with anything?

  • #2
    As far as sales tax goes, you need to find out if grooming services must collect sales tax in your state. This depends on your state, since some states require groomers to collect sales tax, and other states don't. Just google "sales tax" and the name of your state, and start digging around until you find the answer. It may take a while since the information isn't always easy to find.
    As far as IRS taxes, the IRS provides a huge amount of useful information. If you search their site, you can find out how much you are allowed to earn without having to file tax returns. Even if you make over that amount, you may not owe anything -- but still may need to file the taxes.

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    • #3
      1). Many States do not require groomers to pay sales taxes.

      2). Does your Boss know that you are grooming on the side? You may be subject of being fired if you signed a contract that excluded you from these side jobs.

      3). Your "side job" revenue will be added to your "real job" revenue, and this will become a total gross amount earned at the end of the year, they are not separated by the IRS

      4). If you do "side jobs", you will need to establish a business name, and hopefully an LLC........so someone doesn't sue you for injury of their dog and take away all of your belongings.

      5) Hire an established accountant to do your taxes....they know the laws, which change every year. My sister-inlaw works for Block and she is required to go to 2 week training session, every year, just to keep up on the yearly changes in our taxes.

      Happy not getting fired

      Dolly's Barking Bubbles, LLC

      www.dollysbarkingbubbles.com

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      • #4
        Yes you need a business license. Check with your city, but beware, ifyou're working out of your house, they may say you can't. There is a possibility home based businesses aren't allowed. Your side money is just added to your regular income, so be cautious because you will have to pay self employment tax too, so you may want your regular job to take out more income tax for you. I'm guessing your regular job is not in grooming from the way this reads. Although your state may not require sales tax on services, you usually have to pay use tax and/or personal property tax (a tax on your clippers, tables etc.)

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        • #5
          Personally I groom only a couple family & friends pets on the side. I usually barter for service like babysitting and such in exchange for money. Everything is under the table and my boss is aware. If you are looking to grow & expand the "side job" then I strongly encourage you do as recommended above. If you're doing it more as a favor for loved ones, I say keep it under the table.
          It's not what you look at that matters; it's what you see.
          Henry David Thoreau

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          • #6
            You report sales of grooming services to the IRS using the schedule c form and the schedule se form and you must use the long form 1040 as you post what you sold on the C. Remember you pay over 12% social security on your net income from the grooming using the se. So keep track of your business expenses because you put that on the c form. That's it in a nutshell.

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            • #7
              Originally posted by 1 Clean Puppy View Post
              You report sales of grooming services to the IRS using the schedule c form and the schedule se form and you must use the long form 1040 as you post what you sold on the C. Remember you pay over 12% social security on your net income from the grooming using the se. So keep track of your business expenses because you put that on the c form. That's it in a nutshell.
              That's it in a nutshell but also depending upon your state and you have to give them copies of the SE and C, or whatever for your state taxes.

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