WA state expanding who needs to collect sales tax
Washington state earns most of its money from sales tax. It requires businesses that sell products to collect sales tax.
It also requires certain services to collect sales tax. Often if these services are related to physical things, e.g. painting a mural on a wall, fixing a fence.
This is called Retail Service.
Now WA is adding more industries to the Retail Service category.
Which means new types of services will need to collect + submit sales tax.
Some new examples:
Advertising services
Graphic design
Presentations, workshops
Web design
Over the years, WA is constantly adjusting who needs to collect sales tax. Some people are not aware that technically their work is considered Retail or Retail Service.
You might not know …
That these services and products also need to collect sales tax:
Photography - services and photos
Selling digital products - newsletters, digital art, webinars
Painting murals
Repairing, improving furniture or other objects
Is this feeling scary or overwhelming?
Are you thinking things like…..
Oh Sh*t! I can’t afford to pay more taxes? Why am I burdened with this? Will clients think my prices are too high? This is not fair! I already hate number, now I have to do this?
I got you!
Here are some key things to know upfront
1 - This won’t cost you any extra money. This is tax that you collect from the customer, and sent on to the state. (Though it will take a little extra time.)
2 - Once you know what to do, it’s not that hard.
3 - Not sure where to start? Just add 10% sales tax to everything for now, you can get more precise later. Set that money aside in a separate account if possible.
4 - Our customers are used to paying sales tax, so hopefully, for most people, this will not be a big deal.
5 - When it’s time to file, the phone support at the WA Department of Revenue is usually really nice, and it is their job to help you. (You can also tag me in to help with a Quickie Consult-Call )
6 - Other people not as smart as you have figured it out, you can too!
I’ll be creating more support materials and resources in the future. In the mean time, feel free to hit me up for a Quickie Consult-Call for a small fee. Or, if you’re a new client, find me in a free 20-min Zoom chat.
You got this!
Once you’ve got your system, this is just one more way to feel like a Bo$$!
xo Jenny
Accountant help with IRS taxes ~ if you're on a tight budget
“Do you any CPAs/accountants who can help me file IRS taxes? I’m a single-member LLC/PLLC on a budget….”
Or ”…I’m a Sole Proprietor on a budget.”
Hi Friends,
This is probably the #1 most common question I get via email. And it’s a little complex to answer. Short answer ~ Not really, but I can still help you!
Please read on for some context, then options for you.
Context
Great accountants cost a little money. The ones I know generally charge $900 - $3000 for filing IRS taxes, with good reason. A great accountant is easier to work with, good with people, they will answer questions, they use robust software, and can advise you on decisions. And if you’re asking for a CPA, certified public accountant, they are more spendy because they have extra certifications and answer to a higher standard.
Here’s a list of accountants I know, and a few other finance folks.
Many self employed people - do not need an accountant. If your taxes are simple, you can file directly. Filing software is excellent at prompting us for what to report.
Also….if your taxes are simple, all the accountant is doing is entering it into their software. Without any value-add! A great one will look it over. Many of the cheaper-priced accountants simply enter it into the software for you. By the time you’ve given them all the info, you could have filed your own taxes.
Reasons to get an a great accountant:
You have tricky taxes: investments, rentals, more than one home, etc.
You’re filing as an S-corp
You have employees
To help you with decisions
They lead you through the process of prepping your business info
They answer questions in a friendly way
Reasons to get an a cheaper accountant:
You like the deadline of getting all your forms + numbers to them
It gives you peace of mind, it feels more official
It’s part of your annual ritual
Options / to get accountant help on a budget
The most affordable way is to use tax software, and access the accountants / tax pros they offer!
Work with H&R Block. You can go into an H&R Block center, or get help online. I think you still enter everything into the computer, and for an extra fee, you can get a real person to help you with it.
Use TurboTax with “Live Full Service”. Or file yourself, using the Live Chat for questions.
Try Tax Slayer. Their standard package includes access to tax pros.
Friendly Reminder
No matter who you file with, you still have to do all of the prep work! It’s still on you to find all of the tax forms. And to collect all your business numbers. The “Filing” step is putting all of that info into the software. It’s the easier part…. Check out this newsletter for a few tools to help you with the prep step. If you like it, please leave a tip in the Tip Jar!
Good luck, you got this!
♡ Jenny
How to Update Your Business Address ... in all the places!
EARLY DRAFT
First, here’s a short list of places to update your address.
Scroll down for more details and screenshots for the first, big three!
Standard
For LLCs/PLLC ~ with the Secretary of State
WA State Biz License ~ with the Dept. of Revenue
City Biz License ~ either FileLocal or the Dept. of Revenue ~ see below
Business bank accounts
No need to update the IRS. When you file next year, you’ll simply use your new address at that time.
Custom/As-Needed
Registered Agent ~ if they handle your LLC/PLLC paperwork
Professional License ~ the WA dept. that matches
FMLA account ~ Paid Family Leave / Employment Security Dept. ~ via Secure Access WA
Health Insurance companies
Paperwork/As-Needed
Any w-9 forms ~ for current and future contracts
Third party money processors ~ Venmo, PayPal, etc.
Online retail platforms ~ Shopify, Etsy
Some Details and screenshots
1 - Secretary of State
There are two places to update your address:
Business Amendment
This changes the official address of your business. It will cost $20 - $50 (?) to file it.
Log into the Corps and Charities Filing System
Look at the Left Navigation
Open up Business Maintenance Filings (it might be open already)
Look below for “Business Amendment”
Fill out the form, pay and submit
Your Profile
Log into the Corps and Charities Filing System
Look at the Left Navigation
Scroll down, find “Account Preferences”
Open, choose “Change Profile”
Add your info, choose “Update”
2 - Department of Revenue - draft
Sometimes the DOR charges a processing fee for this change. It can be anywhere from $10 - $50, depending on the year.
Log in to MyDOR
Click “Get Started” ~ the big green button at the top
Scroll down to the section that is labeled “Licensing”
Look to the right, there’s a section labeled “Account”. Look toward the bottom, and click “Other updates”
Look to the right again, there’s a section called “Manage Business Name and Addresses”. Look toward the bottom, and click on “Update location and mailing addresses”
You will see a few sections ~ all with the associated address. Click on the Address that you want to change.
3 - FileLocal ~ for these Cities
Go to FileLocal if you have a business license in:
Seattle, Bellevue, Tacoma
Shoreline, Lake Forest Park, Everett
Des moines, Kent, Renton
For other cities, see #4 below
Log in to Filelocal
Click on “Account Center” from the Top Nav
Choose “My Account” from the drop-down menu
You’ll see “User Information” and “Corporate Information”. Use the edit buttons to make your changes
(For other cities, see #4 below.)
4 - Other cities - draft
For any city where you have a “City endorsement”,
♡♡♡
Wishing you all the luck! If you run into any issues, please email me, or set up a free 20-min Zoom chat.
Cheers, Jenny
Book$ about Money / A short list ♡ and some guiding ideas
If you wish to see the list only, scroll down. :)
First, I wished to share some thoughts about books on money….
I love when people ask me about good books on money! And then immediately get confounded … for 2 reasons.
1 - Because most of the books I read are a bit older, and I can’t fully remember if they feel modern enough now. (I stopped reading books on this topic, once I got enough knowledge, and found my own good relationship with money.) I’m sure there are great ones out that that I just don’t know about!
2 - Most importantly, because it really depends on what you’re looking for! There are so many aspects to working with money! I can answer this best when we have a little conversation first. (In fact, feel free to hit me up for a free 20 min Zoom chat.)
The best books on money, are the ones where: you like the tone, it gives you the knowledge you’re seeking, and motivates you to make some changes! Avoid books that feel too daunting, make you feel behind, or that you’re doing something wrong. Or define a protocol that feels too strict.
Below is a list of money topics.
I list them out, to offer you as menu, in case you’re still figuring out what you want to learn.
Also, I wish to point out that … there are many ways to “be good” with money. Though in our society, women have been steered to only one corner of this skill set: budgeting, saving money, being thrifty, paying off debt. Here are more ways to be good with money, that might get you a bigger bang for the buck!: earning more, feeling worthy and empowered, building wealth, being literate with our money systems.
These are the most common topics people are asking about:
How to control or direct your spending (budgeting)
Ways to save more
How to get out of debt
Investing, growing wealth
Retirement
Adulting money skills, building some basic money literacy and know-how
Basic bookkeeping and accounting for business
I would love to get these topics on people’s radar too:
Get fired up to earn more ~ how to feel worthy
Learn what your thriving life costs, and put a price on it
How to earn more
If you work for yourself, design your rates to earn enough+, If you have an employee job, find a way to ask for more
How our money system is a bit whack, and you’re great!, but it’s still good to know how to play the game
How your taxes work, so you can factor them into plans
Feeling better about money, building a more peaceful relationship, being empowered
How to work with people in the Finance world (financial advisor, accountant, etc.)
List of Money Books
I wish I had more modern books to offer you! If you find any that you love, please let me know.
Feminism and building wealth
I haven’t read these, but this is where I’d start today
Perhaps heck out Suze Orman books
All-around Money Skills ~ Getting out of debt and building wealth
#7-Figure Net Worth: Modern Wealth Blueprint for Black Americans
by Brielle Mabrey
Your Money or Your Life: Transforming Your Relationship with Money and Achieving Financial Independence
by Joe Dominguez and Monique Tilford
This is an oldie, but goodie. Though the program is kinda strict.
Adulting Money Skills with a Narrative
I Survived Capitalism and All I Got Was This Lousy T-Shirt: Everything I Wish I Never Had to Learn About Money
by Madeline Pendleton
Charging enough if you’re self-employed
Sections of these books cover how to charge more.
If you follow this guidance, it’ll pay for the book in no time!
Unstuck: Method + Magic for Stepping Into your Worth
by Roxie Jane Hunt
How to Become Self-Employed in Seattle: A Guidebook, Companion, and Reference
by Jenny MacLeod (yours truly!)
Working with money if you’re self-employed
Accounting Made Simple: Accounting Explained in 100 Pages or Less
by Mike Piper
Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine
by Mike Michalowicz
This book is overpromises (it could have been an article)…however, it’s got some great strategies around using bank accounts.
Feeling better about working with money
The Soul of Money: Transforming your Relationship with Money and Life
by Lynne Twist
Thank you for reading! I’d love to hear which books you found helpful, whether from this list, or beyond. Good luck in your journey! And way to go for building up your money skills! I think it’s one of the most beautiful, simple, radical acts as a Feminist!
♡ Jenny
Filing your BOI Report with FINCEN - a New Requirement for LLCs/PLLCs starting in 2024
UPDATE on 1.7.2025
This requirement is now paused. Here’s a quote from FINCEN:
In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports. More information is available at https://www.fincen.gov/boi .
Check back with FINCEN, join the Sidekick Service Newsletter, or email me to stay tuned!
Here is the original blogpost, written in March 2024:
Hi there,
This is a new federal requirement - in 2024 - for anyone who has an LLC / PLLC.
Good news! It’s actually simple and quick and free.
It just looks kinda scary. (And some people in social media try to make it look scarier than it is to get your attention, and try to get money out of you.)
Short Story
You just have to log in, and provide the government with information about your LLC/PLLC and the people who own it. That’s it!
Some Details
The requirement includes filing a BOI Report. This stands for Beneficial Ownership Information. You might also see the acronym BOIR, where the R stands for Report.
If you registered your LLC/PLLC before January 1, 2024 … then you have all year to get it done! For you, it’s due by January 1, 2025
If you registered your LLC/PLLC this year, in 2024 … then you need to complete the BOIR within 90 days of registering your LLC/PLLC.
More of the Story
…Some people use LLCs to cover up criminal activity. So a branch called the Financial Crimes Enforcement Network (FINCEN) is tasked with getting info on all the LLCs/PLLCs and their owners, to verify legal activity. And look for the criminal activity.
Filing your BOIR
Get prepped:
It’s easy … you’ll just need:
The EIN for your business (or social security number if you don’t use an EIN)
A photo of your Driver’s License or Passport
The process takes 10-20 minutes. (More if you like to read, and re-read instructions!)
Links:
To File Online - Click here
For helpful walkthroughs and screenshots - Click here
ProTips
Question 16 looks a little confusing at first. They’re basically asking if your LLC/PLLC existed before January 1, 2024. If yes, they refer to it as an “Existing reporting company”. If you click Yes to this, you can skip a whole section.
There are little “Need help?” prompts throughout, with more information.
At the end, they’ll offer you a PDF of the report to download. BE SURE TO DOWNLOAD YOUR TRANSCRIPT! Currently, this is the only way to get confirmation that you filed. You’re not able to do it later….
And/or record somewhere that you finished your BOIR. Later this year, there will probably be lots of scary looking ads out there … and your system might get activated. Then, when you remember that you did this, you can feel calm and victorious.
Wishing you a quick and successful filing.
Considering getting a little reward for yourself for dealing with this pesky chore!
♡ Jenny
Do you work with people outside of Seattle? / In other states?
rough draft form
Short Answer
Yes! I work with people outside of Seattle, in any state.
Longer Answer
Depending on what you need, I can usually help with most or all of your business/tax support needs.
In my wheelhouse anywhere:
Understanding and doing IRS taxes, your money systems, how to set up a new business, figuring out prices, raising rates, ideal schedule and more. Being a great boss to yourself, so that it’s sustainable to be self-employed.
Outside of my wheelhouse:
The city and state requirements where you live. This affects both getting your business legally set-up, and for ongoing local tax + business chores. However, I can research that alongside you, and usually get pretty clear very quickly … and then can help you create a custom checklist for you to keep it all straight. Prices/expectations in your area. Filing taxes with S-Corps. Dealing with payroll.
Please feel free to reach out with your specific needs, and I can let you know if I might be a match for you.
:) Jenny
Filing WA State Taxes / Just the Basics!
Hello there,
The post below gives the most stripped-down basics for filing WA state taxes. If you’d like to read more detailed posts, and see some screenshots, click on these links: for Service Providers and Retail / Combo.
Also, I want to share this GOOD NEWS right upfront. Once you know what you’re doing, this business chore only takes 5 - 20 minutes. It will take way longer to learn about it, than to actually do them….
:) Jenny Girl Friday
Due for you IF:
You have a WA state Business License
Estimated Time:
5 - 10 minutes - Filing
0.5 - 2 hours - Prepping
How:
Online with MYDOR
Due Dates:
Businesses are assigned annually, quarterly, or monthly
Annual Due Date
• April 15
Quarterly Due Dates
• Apr 30
• Jul 31
• Oct 31
• Jan 31
The Tax Form is called:
Combined Excise Tax Return
What everybody will need:
__ MyDOR / SAW - Log-in and Password
__ Gross Sales Total - per time period
Annual Filers
• From January 1 - December 31
Quarterly Filers
• Q1 - January 1 - March 31
• Q2 - April 1 - June 30
• Q3 - July 1 - September 30
• Q4 - October 1 - October 31
Some of you:
__ Subtotals of Gross Sales by Category
And, if you Retail, you may need:
__ Retail Sales Subtotal
__ Retail Sales out-of-state
__ Retail Sales where Tax is collected by a "Facilitator"
__ Sales Tax Paid at the Source
Types of Tax:
B&O (Business & Occupation Tax)
Sales Tax
Use Tax
Note: These are all types of “Excise” tax. That is why the form is called “Combined Excise Tax Return” because it’s asking about all three - and some others - in one, combined form.
B&O Tax: small businesses will receive a tax credit. So, if you gross under about $55K, you will not have to pay any tax. As your income goes up above that number, the tax credit will get smaller, then disappear
Sales Tax: applies to selling products or retail services
Use Tax: applies if your business purchased items/tools outside of WA state
Thriving Plan for the Year Ahead
Rough Draft
Thriving takes cultivation!
And time!
And you are so worth it.
Ever feel like you're back in a hamster wheel with work? This is very common, as we try to please all our clients, families, friends...we can get stuck in a rut, so, so easily. It turns out, that loving your job, having things in balance, earning enough ... in other words, thriving, has to be cultivated. One strategy, is to set up an annual Thriving Plan.
Here's a tool for you to try out. (You might recognize it, it's revised from an earlier tool.)
Taking even 20-30 minutes to fill this out can make all the difference!
Start with the easiest boxes on the outside. Continue to fill them in to see what your priorities are for the year. Add any vacations, trips, retreats. Lastly, create your weekly schedule(s) and monthly routines - as a way to fit in all of your priorities.
Not sure what to write? Or trying to get it “perfect”. …Just guess! You can always change it later. There is great power in starting. And often, our gut-initial-instincts are what we really need/want.
First, I’ll share my example to give you an idea. Then, there are 4 different templates to choose from.
My Example
My biz year goes from Sep - Aug
Click on the image or the Option # to download.
Option 2
Year going from January - December
With 2 different weekly schedules - a and b
Option 1
Year going from January - December
With one type of weekly schedule
Option 4
Year going from September - August
With 2 type of weekly schedules
Option 3
Year going from September - August
With 1 type of weekly schedule
Wishing you some time in your schedule … to do this important work! I hope it feels fun and magical.
♡ Jenny
P.S. Want a little company or guidance with this? I’d love to help! I offer One-Time consults - and the goal is that they are game-changers. We can fill out your plan, talk through any roadblocks, highlight new desires, and whatever else you need to feel great about your job and life. Oh, and starting this year, you can bring a friend to the consult, and I can meet with both of you for the same price.
How do I know if I file ANNUALLY or QUARTERLY with WA state?
Quick Answers
Your filing schedule is assigned to you, after you register for a business license. Here are ways to find out your schedule.
Look for a letter you received from the Washington State Department of Revenue (DOR) - after you registered for your business license. It will tell you your schedule.
Call the DOR to ask them. They’re usually very friendly. It helps to have your UBI on hand, if you know where that is. (UBI is your WA state business number.) 360-705-6705
Log into your DOR account, navigate to Manage Returns, and see what it says there. If you’re on the Annual schedule, it will say that. If you’re quarterly or monthly, I believe it just shows the date that it’s due. So you can easily infer the schedule.
Some context and FAQs
Like all states, WA relies on taxes to fund programs. It collects all of these taxes through the Department of Revenue. There are two main categories. One, you’re already familiar with - sales tax. If your business provides any retail products or services, you’ll be required to collect and submit these taxes. The 2nd category is taxing businesses in a few different ways. The most common of these is Business and Occupation tax. These dollars help the state support and monitor businesses, to be safer for consumers, etc.
The state needs to collect its taxes on a regular basis. So, your filing schedule - annually, quarterly, monthly - is based on your projected taxes. If you’re going to earn a lot, and collect sales tax, then you’ll likely be put on a quarterly or monthly schedule.
If you earn less and/or are service only (no sales tax), then you’ll be put on an Annual schedule.
This is all based on your Gross Sales (all the money you collect from customers/clients … before business expenses). And, if you collect sales tax or not.
I heard that I have to send in Estimated Quarterly Tax Payments? Is this the same or different?
This is a super common question. This different. When you have a business, you must report to all levels of government: city, county, state, and the IRS. It's easy and reasonable to get them mixed up!
"Estimated quarterly tax payments" are part of paying your federal taxes to the IRS. These are estimated based off the profit your business is likely to make. They are due four times a year: Jan 15, Apr 15, Jun 15, Sep 15. Click here to read more.
If the state says that you must report quarterly, that is for state taxes, which include: B&O, sales tax, use tax. These are calculated from your actual sales.
I was assigned Quarterly payments. Ugh. Why is that? Can I change it?
Basically, the state wants to collect tax money on a regular basis. If you have a Retail business (meaning you'll be collecting sales tax) and/or if it looks like your income will be high, they will assign you to making reports quarterly.
♥ Please don't worry too much though! Once you know how to make reports to the state, it only takes a few minutes!
If you want to change it to reporting annually, in the past, the only way was to call the state in January. If your income is low enough, they'll make the change. That number is: 360-705-6705. It's possible that there are new rules, so you might try calling soon if you want to check.
You talk about Making Reports, Paying Taxes, Submitting Taxes, are these all the same thing?
Great question. They're slightly different. I like to think about things at the most basic level first. Once you have a business, you are required to Make Reports to the state. Sometimes, if you're very small, and/or do service work, then you won't owe any money. Yay! BUT, you still have to make the reports so the state knows this. This is step one of the process.
Paying taxes are when your business is actually being taxed. That's the B&O tax, and Use Tax. This is based off a percentage of your Gross Sales, and any purchases out of state. The money comes out of your pocket.
Submitting taxes is different. This is Sales Tax that you've collected from your buyers. It is tax based on their purchase. It comes from their pocket. You're simply the carrier of that money.
How can I get more info + help with this?
Lots of ways!
♥ Get help from the state DOR. They offer workshops, online tutorials, and even consulting! Click here to see more info at DOR.wa.gov.
♥ If you currently work with an accountant or bookkeeper, check with them.
♥ Get 1-on-1 help with Yours Truly. Sign up for a One-Time consult. We can work 1-on-1, or you can bring a friend to split the fee.
♥ Join me for Book$ Club! A monthly event, where self-employed folks gather to work on bookkeeping and biz chores - just like this one. In a Happy Hour setting. I provide 1-on-1 help, as time allows. And/or, you can ask other folks in the group. Like study hall, but more fun! Click to … Read More … or to Register
The Fall Refresh
A huge part of being a Great Boss, is to find ways to make your life easier and to feel good. This might look like:
making sure you have the right tools for your job
trying new little routines that bring more ease
cutting things out of your job description
infusing a little fun or joy
The Fall is a natural time to check in, and do a little Refresh. The idea here is that it’s a quick little adjustment - that moves something stale out, and something fresh in.
This can take as little as 5 minutes, more if you like. And it can make a huge difference.
Check out the worksheet below. And/or consider these questions for a moment. Then, pick 1 or both actions to commit to. Please, go with your gut!
One year, I committed to taking a lunch break every day. It felt like an underwhelming choice … but, it turned out to be very eye-opening, and a bit of a game-changer. At first, I could only manage 5-10 minutes, because of the ways I’d scheduled my days. Also, my body just wasn’t used to it! But over time, I realized how much I’d been in the habit of just pushing through the whole work day, in one big slog. And even though my stomach was fine, my brain was very taxed. I slowly expanded my lunch break, and this has made a huge difference.
For your Fall Refresh, you might check out the worksheet below. (Sorry, it’s a little faded.) Or, simply think on these questions, then choose 1 thing to add or change.
♡ How can I make my work (and life) a little easier for myself?
♡ What can I adjust to feel better, or more nourished?
For extra credit, tell people about this action - as often as you can. It’s great to be a Great Boss and to be seen doing it! (And who knows, you might inspire someone else to follow suit.)
Cheers, Jenny
Estimated Quarterly Payments (EQ$) to the IRS / Just the Basics
The WHY behind EQ$
The IRS is a Pay-as-You-Go tax system. We're required to send in 4 estimated payments throughout the year ... then, it's True Up time when we actually file our taxes. If we overpaid, we'll get a refund. If we underpaid, we'll owe more.
Good news!
Once you know what you’re doing … it only takes about 5 minutes!
It can feel really satisfying, like you’re a BOSS of your business.
It makes Filing Taxes in April a lot nicer.
A Few Quick Facts about Sending in EQ$
When we send in an EQ$, it’s simply sending in money. It’s not filing taxes. There are no numbers to report. We just send money and make sure it’s attached to our name and tax ID.
If sending by check, there’s just a small voucher. If online, just a few fields to fill out to verify your identity.
You can send payments online, or via snail mail. Click here to read more.
IMPORTANT - if sending payments online, see note below.
It's fine to use your SSN with these payments. (Even if you have an EIN.)
The Due Dates are not even! (Weird, right?)
DUE Dates
April 15
June 15
September 15
January 15
Note - When these dates fall on the weekend or holiday, they will shift to the following business day.
To Send in or Not Send In….
If total tax for the year (related to your biz profit) is $2000 or less, then the IRS says that we do NOT need to send in payments.
If total tax for the year (related to your biz profit) is $2000 or more ... we're required to send in payments.
If we send in partial payments, or none at all, we might have to pay a penalty. Usually these are a few hundred dollars or less.
How Much to Send
The IRS offers a complex way to calculate your EQ$. I offer simpler alternatives. Three different methods to choose from. Click here for the NEW worksheet with instructions.
IMPORTANT NOTE / If Paying Online
IF you pay online, and use a 3rd party, be sure to choose "Personal Taxes"
Why? Because your business does NOT pay taxes, you pay personal taxes on the income you earned through your business....
Well those are all the basics on EQ$. It might feel intimidating at first … but it really gets easier over time!
Finding Your IRS Numbers - Notes and FAQs
This is a brand new post … I’ll keep adding to it throughout March 2023
Some General Notes
The IRS taxes you on profit.
To formula to finding this is: GROSS SALES - Biz EXPENSES = PROFIT
To show this work, the IRS asks us to fill out a Schedule C, a type of “Profit or Loss Form”.
The Schedule C is only 2 pages, and not that hard!
In reality, we don’t fill out the form … if we file ourselves, we’ll enter the numbers into software or a website (like TurboTax, FreeTax, H&R Block).
OR, we’ll give our numbers to our tax preparer.The Schedule C gets added to your personal IRS taxes. You don’t have to do a separate tax return. (Isn’t that great?)
Did you know … your business doesn’t pay any IRS taxes? You are paying personal taxes … on the money you earned from your business.
When you are self-employed, you’ll be paying 2 types of tax. Income tax (what you’ve been paying your whole life) and Self-Employment tax.
Business deductions, write-offs, business expenses - all mean the same thing.
What can I write-off? / What can I claim? / What is a business expense or deduction?
Almost everything you spend on your business - can be a deduction. It’s just a matter of what amount, and what category. The IRS uses the phrase, “ordinary and necessary”.
Quote from the IRS:
“To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your industry. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary.”
What about something that is part for business, party for personal … like my cell phone, or my laptop?
These are referred to as Shared Use items. The basic strategy is to calculate - or decide - on what percentage is for business, and claim that amount. The default is 50/50, though you can split them other ways as well.
So, if you buy a new computer for $1800, and claim 50% for business, you would claim $900 as a business expense.
Let’s say your phone bill is split between your business, personal, and 2 other people. You could say that 25% is for business. Then take 25% of the total phone bill for the year as a deduction.
Does it matter what category I put things in?
Sorta no, sorta yes.
As long as you claim things only one time, you’re generally fine. The category doesn’t change the taxable amount. And if you’re paying the right amount of tax, you’re good.
Putting things in the reasonable categories does help though! Part of the risk factor for getting audited - is - do these expenses line up for this type of work.
What if I don’t see a category that fits?
You can either pick the closest category, that might make sense.
OR, make an “Other” category, and give it a label.
For example, I have checking account fees, for $84 a year. I could maybe put it into the “Office” category, though it’d be a stretch. So instead, I put it into “Other - Bank Fees”.
How do I handle mileage?
answer coming soon
What about a home office deduction?
Sometimes you can take a deduction for your Home Office. Additionally, you can deduct furniture and items used in your office. (Note, very often, the home office deduction doesn’t add up to that much. The simplified method generally yields a savings of $100 - $300 when all said and done.)
A – Home Office Deduction.
First, check to see if you meet the criteria:
Used exclusively for business – meaning no other activities take place there
Used on a regular basis
For the purpose of making a profit
Principle place of business
If yes, there are two methods:
Simplified Method: Calculate the square footage of your home office. Add this number when filing (with software or accountant.) Generally, you’ll get $5 per square foot as a deduction.
Actual Expenses Method: This is complex, and beyond my scope. The basic idea is that you calculate the percentage of your home that is your office. Say it’s 8%. Then, you add up all home expenses – mortgage/rent, utilities, insurance, etc. – then take 8% of those costs. I think.
B - Furniture and items
All or most things you buy for your office can be deducted – like chairs, rug, couch, artwork.
What do I do with the 1099 forms I received? What’s a 1099-NEC? And 1099-K?
1099 forms are a family of forms that track - whenever we get paid. There are different suffixes, here are some examples:
1099-INT … interest you earned from a bank or investment
1099-DIV … dividends you earned
1099-NEC … income from “Non-employee compensation”
1099-MISC … income from “Miscellaneous source”.
These are the forms you get PAYERS, and are straightforward to work with.
1099-NEC (non-employee compensation)
1099-MISC (miscellaneous)
These might come from businesses that hired you, programs you’ve contracted with, insurance companies, people you supervise. You’ll need to input all the data from these forms into the tax software, or give to your accountant. These count as part of tallying up your gross sales.
You may also get 1099-Ks, these come from payment PROCESSORS:
You might get these from Square, Stripe, Venmo, PayPal, etc. These are a little trickier, as the amount reflected in the 1099-K may overlap with other income. Be sure to get guidance on how to enter these when filing.
What if I didn’t receive a 1099 form?
Short answer: You still report the income, whether or not you received the form.
Longer answer: Ask the person/business if they sent one. Or look up on online. If they submitted one to the IRS, it can be a problem if you don’t report it. If they did NOT submit one, you’re in the clear. It’s the responsibility of the Payer to complete the form….
Accountants + Tax Help for Therapists
Hey there,
Here’s a list of Accountants and Financial folks especially collected for therapists. Most of these names come from Bethany Bylsma of the famed + super fun Therapy Godmothers. Friends of mine, offering all types of support for therapists setting up, or running, a private practice.
Also, hey, would you like to learn more about IRS taxes - either to file yourself. Or, to help you work with an accountant in a more empowered way? Check out Taxes + Snaxes, with Yours Truly as a Guest Presenter. Online or in-person workshops (in Seattle).
:) Jenny
Heard
Offering wholistic services - with accounting and bookkeeping combined
joinheard.com/pricing
MaClean Wealth
Retirement and Income Planning
macleanwealthplanning.com/team
TLDR
Extra support for new therapists
tldraccounting.com/accounting-for-therapists/
Nth Degree CPAS
Taxes and help with cash flow
nthdegreecpas.com/
+
Wise Mind Financial
Money Coaching, by a trained therapist
wisemindfinancial.com
How to do a Retreat / Worksheets V.2
ROUGH DRAFT
I'm a huge fan of retreats!
Especially in the summer.
Yes, it's true ... it can feel super difficult to find the time, space, and money. And yes, it's true, it can feel indulgent. And bring up weird/uncomfortable feelings. (I feel guilty. Am I allowed to do this? Why am I so tired? Why am I sad, when this is supposed to be fun?)
Also, retreats pay off - both for you, to feel better. And for your business.
Also, you are worth it.
You are the talent, you need support.
You are the leader of your business, you need space for inspiration and setting the next direction.
You are the manager of your talent, you need strategies to stay in alignment with your vision.
We spend most of our time during the year meeting other people's needs.
This is the time of year to tune into your needs.
And then, to adjust the business to make it a more ideal job for you AND to offer more value for your clients/customers.
I believe it's essential to both you as a person, and the success of your business!
(Also, you can write-off the cost / it's a business deduction.)
♥
Interested in setting one up for yourself?
Check out these worksheets below. They are all in BETA form.
Read this one first - How to Do a Personal/Professional Retreat
Then program Options:
Taking Stock
Rest / Fill the Reserves
Intuition
Inspiration
New Skill
Focused Work
Debrief/Reflect on a specific experience or chapter.
Ways to Say NO ... Including MAYBE (Probably No).
This blog post will grow!
For now, here are some great ways to say NO … including MAYBE (Probably No).
Basic No-s
No thank you, I’m going to pass on this.
Thank you for inquiring … I’m going to pass.
Hmmm… I think I need to pass on this.
Oh bummer, I’m actually phasing out that service … so I have to say no.
I’m not currently set up / prepared / ready for that type of project, so need to say no.
No thanks.
Thanks, but no thanks.
I’ve got to say no for now, but thanks for asking.
I’d rather not, but thanks for asking.
I appreciate you asking. I need to say No at this time.
Oh shoot, that’s a hard no.
Oh sorry, that won’t work for me.
I need to RSVP no for this event.
I wish there were 2 of me, in that case I would say yes!
I need to bow out this time.
Sorry, no. Nat at this time.
I’m otherwise engaged, sorry!
Ooh, it’s not likely I can make that work. I’ll let you know if anything changes.
I’m sorry, I’m all booked up that week/month.
I’m booked up until the end of the year.
Oh shoot, I’m already committed that ___[evening/week/etc.]____.
I’d love to, but my plate is totally full right now!
I’m honored that you asked! Currently, I’m at capacity, so have to say no. If I had a clone, I would totally do it.
What you need is beyond my wheelhouse / my scope / my expertise…sorry, I need to say no.
Sounds tempting, but I need to pass.
If you asked me __ month/years ago … I would have said yes! But now, I’m doing something different, and have to say no.
Thank you for asking. I’m not able to take this project on right now.
I wish I could make this work right now, but need to pass.
Oh man, it’s just not possible for me to take that on right now.
Helpful No-s
My business has changed, and I no longer offer that service. Here’s a referral … or All the best with your search.
What you need is beyond my wheelhouse / my scope / my expertise…and I want you to get what you need and deserve. So, I need to say no.
Sorry no, I can’t do that. But here’s what I can do….
Ask Me Later
Oh wow, that’s a cool opportunity. At this time, I need to say no / pass. Please ask me again in the future!
Maybe someday I can say yes. For now, I need to say no.
I need to say no for now, maybe another time?
I’m at capacity, and currently not booking any future work. Feel free to check back with me in __ months.
I need to bow out this round.
Thank you for thinking of me, I need to pass this round.
Oh bummer, I’m just not able to fit that in currently. Feel free to check back with me later.
Can I take a rain check?
Maybe (Probably No)
Hmm. Let me think on that, and I’ll get back to you.
I’ll check my calendar later – when I get home / during my office hour – and will get back to you by _____.
If you don’t hear back by this date, then I’m a no.
Hmm, I’m guessing that I’m booked already. So I’ll say no for now, and if something changes, I’ll let you know!
♥
Do you know any great Accountants or Bookkeepers?
This is a great question. Also, it is the #1 question I receive through email … so I decided to keep a full answer here for you - that I can update regularly.
Short answer - Yes! I know some amazing folks.
Longer answer - They are often booked. Below is my current list of people I know, and others recommended to me. If none of these folks work out, read some tips for searching for your own tax/money pro - at the bottom of this post.
Note: If you’re a Therapist - please see this list, specially collected for you.
/ / / / /
One last note: If you end up hiring one of these amazing folks, please consider coming back, and leaving a Tip in the Tip Jar. It took me years and hours+hours to find these good people. Thank you!
Valerie Moseley, CPA
valeriemoseleycpa.com
Available for consults: self-employed, S-corps, interesting tax situations, etc.
Limited openings for perfect-fit clients
Jocelyn Muhl, CPA
northseattleaccountant.com
Accounting services include time for questions
Available for consults, and perfect-fit clients
Kathy Coggins
cogginsaccounting.com
Kathy loves to work with S-Corps!
She has a full team to support you with other services too, like payroll, bookkeeping
Luke and Amy Weissgarber
ltwcpa.com/
Based in Bellevue, just moved up from Texas. Recommended by trusted CPA, actively looking for clients.
Julia Ensign
ensign-bookkeeping.com
Bookkeeping services for local businesses
Friendly! Offers phone call to take about working together
Patty Kelley, CPA and Katherine Griswold, MBA
portumbooks.com
Taking new clients, focus on small business. Offering full bookkeeping services, preparing documents for taxes, consulting, Quickbooks advising, and more!
Lindsey Gaughn, CPA
gaughanlindsey@gmail.com
Available for consults, bookkeeping and accounting services
Email to get in touch
Hipster Money / Alexandra Perwin, CPA
hipstermoney.com
Usually booked … sometimes available for consults, new clients who are perfect-fit
Clear Sky Money Matters / Emily Zillig
emilyzillig.com
Bookkeeping, money coaching
Sadie Frederick / Bookkeeper
sadieaccounts.com
Specializing in small Seattle nonprofit clients (also a long-time client of mine)
Justin Bourn, CPA
wzbcpa.com/team/justin-a-bourn/
A client said he’s friendly and easy to work with. Now the co-owner of this company. I hope to meet him some time.
♥
Tips for finding your own Tax/Money Pro
Keep asking everyone you know, to get a list of names 3-5 or more if possible
Try to meet at least 2-3 - for some type of initial consult. You will learn a little bit each time, and you’ll get a sense of the various communication styles. And what you like and don’t like.
Keep in mind - this is an equal power situation. You are the client, you’re an expert on your biz and your personality and work style. They are the expert of filing taxes and numbers. Be sure it feels good to talk with them and work with them.
If you want someone who will teach you things, ask them specifically if they like explaining how taxes and bookkeeping work.
For Accountants, be sure to ask if they file city and state taxes too! Many accountants do not.
Good luck with your search! … and please do let me know if you find any great people to add to this list.
Jenny Girl Friday
Weekly Staff Support / Check-in Meeting (For being happier at work)
Here’s my latest tool and practice for being happier at work: Weekly Staff Support Check-in Meetings.
In a nutshell
The idea is to look at the week ahead, and to ask myself, What support do I need to get everything done, and feel great?
Context and Guiding Ideas
It’s easy to move through the days and weeks, working constantly, to complete all of the things on our to-do list. Showing up for clients, finishing projects, handle business chores, etc. We are often driven by due dates. And many of us do whatever it takes to fulfill those commitments. We use the tools of: fit-stuff-in, dig-deep, work-until-it’s-done.
That’s cool, and gets results. …though, after a while, it can be very wearing on the mind, body, and spirit.
Here’s what we forget - how to give ourselves support to get through these big lists of work. Support can range from: getting tools we need, creating more time and space, gatekeeping small things out, taking things off the calendar, fuel or nourishment, ideal working conditions, encouragement, company … the list goes on. It’s whatever you need to get things done (and not be depleted).
Enter the Weekly Staff Support Check-in Meeting
You invite your two selves, the Boss You and the Talent You, hence the “meeting” part.
Talent You can write out all of the things on your plate. And then shares (with the Boss You): here’s how I’m feeling, here’s what I need, here’s what I wish. Then, the Boss You can make some decisions and provide support. After all Boss You wants to keep the Talent in the business!
Here’s how to use it
1 - Write some notes in the calendar section. Perhaps put in critical meetings, periods for working, breaks.
2 - Fill in the 2nd row - looking at tasks on your mind or list. Perhaps assign some to the calendar above.
3 - Make some observations. What do you notice - thoughts, feelings?
4 - Drill down - What’s a theme? What energy is needed? What support do I need? Perhaps add - how you want to feel at the end of the week?
5 - With all of that in mind, define some specific staff support. And then, make plans to give it to yourself.
The Quickie Version
At the beginning of your work week ……. let your eyes glaze over your calendar and to-do list.
Then, ask, “What’s one thing I can do or give myself to move through the week, get things done, and feel great?”
Channel the idea that you want to be the best boss in the world.
Give it a whirl, and let me know what you think!
: ) Jenny Girl Friday
Sidekick Services / Paid Newsletter FAQs
How many newsletters will I get?
12 - 20 each year.
One, at the beginning of each month, with the important due dates, helpful links, and tools. Sometimes, you may receive an extra newsletter, if it pertains to a timely + specific topic. For instance, opportunities - like the PPP Loan, or if there are important changes with tax + licensing rules or procedures.
What will be included, specifically?
Reminders for Due Dates - for taxes, license renewal, and LLC / PLLC renewal.
Links to how-to articles, walkthroughs, or information.
Handy tools + worksheets to make biz chores easier.
AndPlanned for 2022: more tools for tending your Money Garden and being Happy at Work.
Topics cover:
IRS Taxes - Filing and Prep
Sending in Estimated Quarterly Payments to the IRS
WA State Taxes
King County Taxes
Seattle Taxes
+
Renewing PLLC / LLC
Renewing Seattle License
+ More
What does the newsletter cost?
There is a monthly fee for the newsletter. You can choose what you’d like to pay, based on your situation and how you feel. Suggested prices:
$15 - I’m new to business / on a strict budget
$20 - I want to pay the Suggested amount
$25 - I’m thriving and want to send some love back your way
$26+ (custom amount) - You have saved my life! I want to show a huge gratitude!
How many months is something due?
5 - 9 months, depending on your situation.
If you file Annually with WA State, you’ll have things due 5 - 7 months out of the year.
If you file Quarterly with WA State, you’ll have things due 7 - 9 months out of the year.
Why am I paying you monthly, if some months there is nothing due?
Three Reasons:
1 ) It’s helpful to know when nothing is due, so you can have peace of mind.
2 ) Some months you’ll be receiving a LOT of content and forms. Others are very light. Your monthly fee reflects the average value.
3) Providing regular payments, helps me to be building materials for you year-round.
Also, the months in between are a great time to rest from biz chores, to refine systems, or to work on being Happier in your job. Sometimes I will provide tools or articles related to this other work.
Is there a bonus for signing up?
Currently … there is no bonus for signing up.
If I develop one in the future, I’ll send it to all the subscribers first!
What if I no longer wish to receive Sidekick Services, but want to know about classes, workshops and other services?
I have a new Announcement List. It’s free to join. I will share about any new workshops, classes, books, and openings available for Friendly Tax/License Consults. (FYI - These announcements will go out first to Sidekick Services.)
Do I need to join the Announcement list as well?
The simple answer - No.
Why? If you are on Sidekick Services, you’ll receive all Announcements. And, you’ll receive them first! The Announcement List is a great option if you decide to leave Sidekick Services.
Is this useful if I live outside of Seattle?
Many readers have shared … that Yes! It’s still helpful if you live outside of Seattle.
For two reasons:
1 ) You get supported for IRS tax prep and filing, relevant to anyone working in the U.S.
2 ) The reminders about local taxes (city, county, state) often prompt readers to get in touch with their own local agencies to find out what is due.
Will it be different, now that we’re paying for it?
At first, not really. Eventually……….Yes!
With your support, I’m planning to up-level both the Sidekick Services and the Business Apothecary. But, it will take some time + money.
Hopefully, you will someday see:
New design of the newsletter
Additional and redesigned tax + money tools
Updated how-tos and walkthroughs
A web re-design for the Apothecary
+ More!
Why did you switch to a Paid Newsletter … when you said earlier that you wanted to keep it free?
I really, really wanted to keep it free, modeling after NPR or Wikipedia. Over time, I learned that it wasn’t sustainable. I had a few donors (thank you!), which was encouraging and so helpful. Also, it was only just enough to cover tech costs and provide a tiny bonus.
Over time, I realized the following foundational ideas:
To fully develop the newsletter and tools, and to really serve you all abundantly, I need 1 - 3 days a month for writing and design.
NPR and Wikipedia have regular fundraising campaigns. I didn’t want to start inundating you with those kinds of messages! I’m a fan of only sending need-to-know stuff to you and your inboxes.
The value of what I’m providing is designed to save you $500 - $1500 a year or more + intangibles like less stress, more peace, empowerment. And this is worth charging for.
Anyone desiring to thrive in self-employment can afford this monthly fee.
This model will be like Spotify, Hulu, G-Suite. It’s something you want or need, and it costs money.
Is this a Business Deduction for IRS taxes?
Yes! I would suggest putting this under “Supplies”.
What is Memberful?
It is the company that will process your payments, and keep the subscriber list updated. Whenever you’re changing your payment information, updating a credit card, or canceling, it will be through Memberful.
What if I want to cancel?
You can cancel any time, through Memberful. If you’re not sure how, please email me at jennygirlfriday@gmail.com, and I can do it for you. (Please allow 5 - 10 days, if you cancel through me.)
What if I want to change my monthly amount?
Stay tuned … I will find an answer and report back. And/or email me at jennygirlfriday@gmail.com, and I’ll see how to do this for you. (Please allow 5 - 10 days, if you are requesting a change through me.)
This service has been a game-changer for me. What can I do to show appreciation?
Thank you so much! I’m thrilled to hear it! All of the following are welcome: sending me a note in email, leaving a little Love in the Tip Jar, increasing your monthly fee, and/or encouraging friends to sign up. Thank you again! It’s my goal to help you THRIVE and it’s such a joy to know when things are working for you!
PPP Forgiveness Info + Tips ~ For First Time Borrowers
You got that cash … now it’s time to keep that cash!
Great news for PPP recipients in 2021. The SBA made it a lot quicker and easier to apply for Forgiveness! For my part, it took only about 10 minutes … once I found the right location on my bank’s portal. (Full disclosure, I did spend about 30 minutes doing the wrong things first….)
Important - this blog post is for you, if you are a 1st time borrower, with under $150K in a loan.
The Basic Process ...
First, the process depends on the bank. Usually, it's two steps - the bank will give preliminary approval, then send to the SBA for final approval.*
In most cases, we just need to get form 3508S - the Simplified Forgiveness Application - to the SBA ... Either the bank will ask you to fill out the form, OR, they will ask you for information and create the form.
In many cases, No supporting documents are required!
The bank will review your application. If satisfied, they submit to the SBA.
It's possible that the bank or the SBA may come back to you to ask for documentation.
Once approved, you'll be notified. And, the SBA sends the money to the bank to pay off your loan.
*It's possible you may be able to apply directly with the SBA - they have opened a Direct Forgiveness Portal just this week - though it is in the Pilot phase. Click here to see it.
This is what you’re going for … to see this sent to you:
Important Info
It is required for us to keep our paperwork for 6 years. This includes the SBA loan paperwork that grants Forgiveness. And, records to show that you used the funds for 60 - 100% for Payroll. See this blog post for more info on records and acceptable uses for the funds.
The deadline for applying for Forgiveness ... is within 16 months after you received the funding.
If you are a 2nd time borrower
You have an extra requirement - you must prove that you had a 25% reduction between 2019 and 2020 (by comparing 2 quarters).
Please talk to your bank to learn what they will need.
Things to Do
Check with your bank / credit union to see if they are open for Forgiveness Applications. In many cases, they will send you an email to invite you to apply.
Click on the link to see the Simplified Forgiveness Application (3508S) - to warm yourself up for the process. You will see that the info needed is pretty basic.
Put time on your calendar to do this work.
Tips
Reach out to any friends with a PPP at the same bank. Learn from them, or go through the process together.
Plan a large chunk of time for this - even if it's quick. It takes a mental toll, so it's nice to have space.
Have something sugary at the start of this session - glucose helps the brain.
If possible, plan a massage, or trip to Olympus, or a bath, or a walk afterward to reward yourself.
Totally intimidated? Call your bank and ask how to get help.
FAQs
What was I allowed to spend the money on? (What do I need to prove about how I used the money?)
You must use 60-100% of the PPP money for "payroll" costs to be forgiven. There are a few other approved costs - such as benefits, rent, utilities, operational - that can be used for up to 40%. Ask your bank.
Am I allowed to use it to pay taxes?
If you are a sole prop or single member LLC ... technically, you, as a person pay taxes (not your business). So, after you give yourself a Paycheck (into your personal account), you can send in IRS estimated taxes from those monies. Having said that, you may NOT use them for city or state taxes - those are taxes your business pays.
I work by myself, I thought Self-Employed people didn't get Paychecks or have Payroll.
You are absolutely correct! Technically, we have profit or an owner draw. Having said that, the PPP Loan is including us, and equating our "profit" with our "payroll".
What happens if it’s not forgiven?
It stays a loan with a 1% interest rate. I think you may also defer payments, but am not totally sure about that yet.
You got this! Wishing you an easy and quick forgiveness.
♥ Jenny Girl Friday
P.S. Are you self-employed? Be sure you’re getting Sidekick Service emails - tax + license reminders sent to your inbox monthly, with links to how-to articles and tools to make things easier and fun.
How to Close a Business in Seattle
DRAFT FORM
Time to close up shop?
I’ve got you covered.
If this post is helpful to you, please consider leaving a Tip in the Tip Jar. Thank you!
There are two steps to this process:
Part 1 / Alert all agencies - to close the business
+
Part 2 / Do the final tax reporting.
Part One - Alert all Agencies / Closing the Business
1 - IF Relevant to you - Close your LLC/PLLC
With the Secretary of State
Referred to as filing a “Certificate of Dissolution”
Paper form - click this link for the form (if this doesn’t work, search on the SOS.wa.gov site for “close LLC”)
Online - sign into the Corps and Charities Filing System. Look on the left nav for “Dissolution/Withdrawal” link. Search for your LLC/PLLC. Select yours, then follow the instructions.
2 - Close WA State Business License
With Washington DOR (Dept. of Revenue)
Referred to as “Close my Account”
Paper Form - Business Information Change Form. Mailing info on the form.
Online - sign into MYDOR. Click “Get Started” or navigate to your “Excise Tax Account” page. Scroll down, at the bottom, you’ll find a link for “Close License Account.”
3 - Close City of Seattle Business License
With City of Seattle
Referred to as “Cancel a License”
Paper - Write a letter, include this info (Name and phone number, Customer number, Legal name of business, Date business closed). Mail to: Finance and Administrative Services, PO Box 94689, Seattle, WA, 98124-4689
Email - Send an email with the info listed above, to: tax@seattle.gov
Online - Fill out an online form. Click here. If it doesn’t work, please call: 206.684.8484
4 - IF Relevant to you - Close your Account with King County
With King County Department of Assessments
Referred to as “Close Account”
Paper Form - Fill out the Advance Tax Request Form. Click here to download. Address on the top of the form. Need more help? Call 206.296.5126 or email: personal.property@kingcounty.gov
NOTES
• Have any special permits? Or licenses? Please contact the issuers of those to find out how to cancel.
• There is NO need to notify the IRS
Part Two - Final Tax Reporting
1 - Make final report to WA State
Due within 10 days after closing your license.
Note - Some of you file ANNUALLY, some of you file QUARTERLY. You will need to make sure that all reports are complete.
Options:
• Go onto MYDOR, log into your account. Navigate to: “Manage Payments and Returns”. Find all reports that are still due - and complete these. If you need help, call 360.705.6705.
• Call the DOR and ask them to help you. 360.705.6705.
• If you use paper forms, these will likely be mailed to you. You can call the above number for assistance.
2 - Make final report to City of Seattle
DUE - Seattle will let you know. Standard due date is by April 30th of the next calendar year.
Options:
Online - Sign into FileLocal to complete your annual report
Paper - You can request paper forms by emailing tax@seattle.gov or, make the request as part of the Online Form for canceling your license.
3 - IF Relevant - Make final report to IRS
If your business had any activity - whether you had a profit or loss, you will need to report it as part of that year’s taxes. If you are a Sole Prop or Single-Member LLC, then it is reported along with your individual taxes … on the Schedule C form. See this page for info on IRS taxes.
For example, let’s say Meghan closes her music business in June of 2021. She made a small profit of $800. Meghan will need to report her business info next year, before April 2022 along with her personal taxes.
If your business had NO activity in its final calendar year, then there is NO need to report anything with the IRS next April.
NOTE
• Final report to King County was covered earlier, with the Advance Tax Request Form
• NO need to do any financial reporting to the LLC / PLLC. (That is done through your WA state business license.)
Phew! Well done. Be sure to give yourself a nice reward for finishing this chapter - whether it was a short experiment, or on-going side gig, or a major career! It’s worth marking the change, and it’s important to treat yo’self for following through all the way to the end. Need some ideas? Click here for a Reward Menu.