# Paying taxes when doing 2 different types of work. **URL:** \ **Category:** Factual Questions\ **Created:** [September 7, 2007, 8:55pm UTC](https://boards.straightdope.com/t/paying-taxes-when-doing-2-different-types-of-work/418401 "2007-09-07T20:55:32Z")\ **Posts on this page:** 8\ **Page:** 1
**Author:** ![xanthous](https://avatars.discourse-cdn.com/v4/letter/x/53a042/32.png) [@xanthous](https://boards.straightdope.com/u/xanthous)\ **Post date:** [September 7, 2007, 8:55pm UTC](https://boards.straightdope.com/t/paying-taxes-when-doing-2-different-types-of-work/418401/1 "2007-09-07T20:55:32Z")
Let’s say I do freelance work as a landscaper for a company and make regular money at it, with not many write-offs. But then let’s say I decide to start up a second, unrelated business as an interior designer, with lots of start-up costs and investments, and get a business license for that. I decide to pay my taxes quarterly. I have $10,000 gross income for the quarter from the landscaper work, and only $1,000 gross from the interior design, because I’ve only had one job since starting the design business. However, I have $5000 in start-up costs from the interior design business. Do I add up all of my income, deduct expenses and pay taxes on that, or do I pay taxes on the 10K, and then claim no net income on the interior design business? You are not a tax accountant, I know. I’m waiting for mine to call back… ---
**Author:** ![Sunspace](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/sunspace/32/1250_2.png) [@Sunspace](https://boards.straightdope.com/u/Sunspace)\ **Post date:** [September 7, 2007, 9:14pm UTC](https://boards.straightdope.com/t/paying-taxes-when-doing-2-different-types-of-work/418401/2 "2007-09-07T21:14:00Z")
Are you a sole proprietor on the second business? I think that makes a difference. ---
**Author:** ![xanthous](https://avatars.discourse-cdn.com/v4/letter/x/53a042/32.png) [@xanthous](https://boards.straightdope.com/u/xanthous)\ **Post date:** [September 7, 2007, 9:42pm UTC](https://boards.straightdope.com/t/paying-taxes-when-doing-2-different-types-of-work/418401/3 "2007-09-07T21:42:22Z")
[QUOTE=Sunspace] Are you a sole proprietor on the second business? I think that makes a difference. [/QUOTE] I’m not sure what exactly sole proprietor means. My second business is an LLC and I am a member manager with no employees. ? ---
**Author:** ![NinetyWt](https://avatars.discourse-cdn.com/v4/letter/n/cc9497/32.png) [@NinetyWt](https://boards.straightdope.com/u/NinetyWt)\ **Post date:** [September 7, 2007, 9:50pm UTC](https://boards.straightdope.com/t/paying-taxes-when-doing-2-different-types-of-work/418401/4 "2007-09-07T21:50:55Z")
You’d probably fill out a Schedule C for each business, and deduct the expenses separately. That’s what Hubby and I do, for our two different types of work (mowing vs. engineering). Each biz has its Schedule C; tractor parts, diesel fuel and lube are deducted under the mowing biz; computer supplies, paper, drafting supplies are deducted under the engineering biz. [Instructions](http://www.irs.gov/instructions/i1040sc/index.html) for Schedule C. ---
**Author:** ![xanthous](https://avatars.discourse-cdn.com/v4/letter/x/53a042/32.png) [@xanthous](https://boards.straightdope.com/u/xanthous)\ **Post date:** [September 7, 2007, 10:02pm UTC](https://boards.straightdope.com/t/paying-taxes-when-doing-2-different-types-of-work/418401/5 "2007-09-07T22:02:57Z")
[QUOTE=NinetyWt] You’d probably fill out a Schedule C for each business, and deduct the expenses separately. That’s what Hubby and I do, for our two different types of work (mowing vs. engineering). Each biz has its Schedule C; tractor parts, diesel fuel and lube are deducted under the mowing biz; computer supplies, paper, drafting supplies are deducted under the engineering biz. [Instructions](http://www.irs.gov/instructions/i1040sc/index.html) for Schedule C. [/QUOTE] So I guess that even though it would seem really awesome to deduct the $5K write-offs from the grand total of all of my income, and then pay taxes on that, I guess I couldn’t really do that? I would have to pay taxes on the full 10K (very few write-offs) for the first biz, then I would pay no taxes on the $1K for the 2nd biz because I had $5K start-up expenses, and basically the other $4K of write-offs for the 2nd biz would be a loss at the end of 2007 if I hypothetically never made another dollar this year on the 2nd biz? ( I really _am_ waiting for the phone to ring!) 😛 ---
**Author:** ![Sunspace](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/sunspace/32/1250_2.png) [@Sunspace](https://boards.straightdope.com/u/Sunspace)\ **Post date:** [September 7, 2007, 10:37pm UTC](https://boards.straightdope.com/t/paying-taxes-when-doing-2-different-types-of-work/418401/6 "2007-09-07T22:37:04Z")
[QUOTE=xanthous] I’m not sure what exactly sole proprietor means. My second business is an LLC and I am a member manager with no employees. ? [/QUOTE] Ah, so it is a corporation. I know little of corporations. Sole proprietor is just You, with no corporate barrier between business and personal affairs. ---
**Author:** ![xanthous](https://avatars.discourse-cdn.com/v4/letter/x/53a042/32.png) [@xanthous](https://boards.straightdope.com/u/xanthous)\ **Post date:** [September 7, 2007, 10:43pm UTC](https://boards.straightdope.com/t/paying-taxes-when-doing-2-different-types-of-work/418401/7 "2007-09-07T22:43:41Z")
[QUOTE=Sunspace] Ah, so it is a corporation. I know little of corporations. Sole proprietor is just You, with no corporate barrier between business and personal affairs. [/QUOTE] Yes, this whole subject is way bigger than my humble understanding of it. I think I’ll just let this rest until I’m face-to-face with my tax person, who will undoubtedly have a dead, glazed look in his eye from drawing countless diagrams for me with stick figures. 😛 Mods, you can put this one to bed. ---
**Author:** ![fisha](https://avatars.discourse-cdn.com/v4/letter/f/da6949/32.png) [@fisha](https://boards.straightdope.com/u/fisha)\ **Post date:** [September 7, 2007, 11:27pm UTC](https://boards.straightdope.com/t/paying-taxes-when-doing-2-different-types-of-work/418401/8 "2007-09-07T23:27:47Z")
An LLC is a hybrid between co’s and sole proprietorships. (Limited liability company) For tax purposes, they are considered sole proprietorships, not co’s. To answer your question, I think that you would still have a net income of 6,000. But I have my own accountant. So that was just a wild ass guess. Eey yah.