I started a small house cleaning biz in late 2007. I was licensed in our city and filed for an EIN via the IRS. I had an existing corporation that just needed renewed so I was a DBA under that corporation. I had an attorney helping me update my corporation information and she dropped the ball to the point that a few months later the corporation expired. The state never got the papers she was supposed to file.
I really have no idea what type of biz is on file with the state or the IRS now...S Corp, sole-proprietor, etc. I operated under the assumption that I was an S-Corp but I supposed when that expired I was put into another bucket.
So fast forward over the course of six months....at which point in 4/08 I shut my doors entirely.
For a couple of those six months I "hired" some help and paid them cash and classified them as IC's. I kept detailed records of their earnings which were percentage based. However, I paid a driving allowance (flat fee) to those who drove to the work sites. I didn't pay hourly. I didn't "require" anyone to work. If they showed, they showed. Every single worker was let go because of circumstances involving theft, despite running background checks on everyone. It was very discouraging. Since they were considered independent contractors, I simply told them their services were no longer needed. Most never made more than a couple hundred dollars, but some exceeded $600.00.
I had a sudden departure from the business and transferred my existing client base to a friend who just "took over" the accounts. No money was transferred between us. I didn't sell anything. I just wanted OUT of the headache and mess. I had health issues to deal with and it was clear I wasn't set up to continue operating a business with so much to "fix" paperwork wise.
So the end result is that I did not get an accountant due to lack of funds and resources. My attorney, whom I paid good money to, didn't do her job. I LOST a considerable amount of money on this startup. I had to use family income to pay our payroll and said "forget this mess!" I wasn't making any profit and gave up. The fact that the staff on hand couldn't do their specified jobs without stealing in some way just put the nail in the coffin for my biz.
I have not filed any taxes. I am not sure how! Is it too late to file, and honestly...is it worth it for me to stress over it?
I have only one former IC who asked for a 1099. But here's the thing...she made less than $600 but insists she made more. This is a girl who had other "side" work that included stealing my existing clients and doing cleanings behind my back. I think she's confused about her earnings because she had it coming from so many sources. LOL
Anyway, I am not trying to defraud anyone...I just got over my head and am not sure what to do to fix it. Should I hire a CPA or just let it go? I really just want this behind me once and for all.
Thanks all. I appreciate it.

So fast forward over the course of six months....at which point in 4/08 I shut my doors entirely.
For a couple of those six months I "hired" some help and paid them cash and classified them as IC's. I kept detailed records of their earnings which were percentage based. However, I paid a driving allowance (flat fee) to those who drove to the work sites. I didn't pay hourly. I didn't "require" anyone to work. If they showed, they showed. Every single worker was let go because of circumstances involving theft, despite running background checks on everyone. It was very discouraging. Since they were considered independent contractors, I simply told them their services were no longer needed. Most never made more than a couple hundred dollars, but some exceeded $600.00.
I had a sudden departure from the business and transferred my existing client base to a friend who just "took over" the accounts. No money was transferred between us. I didn't sell anything. I just wanted OUT of the headache and mess. I had health issues to deal with and it was clear I wasn't set up to continue operating a business with so much to "fix" paperwork wise.
So the end result is that I did not get an accountant due to lack of funds and resources. My attorney, whom I paid good money to, didn't do her job. I LOST a considerable amount of money on this startup. I had to use family income to pay our payroll and said "forget this mess!" I wasn't making any profit and gave up. The fact that the staff on hand couldn't do their specified jobs without stealing in some way just put the nail in the coffin for my biz.
I have not filed any taxes. I am not sure how! Is it too late to file, and honestly...is it worth it for me to stress over it?
I have only one former IC who asked for a 1099. But here's the thing...she made less than $600 but insists she made more. This is a girl who had other "side" work that included stealing my existing clients and doing cleanings behind my back. I think she's confused about her earnings because she had it coming from so many sources. LOL
Anyway, I am not trying to defraud anyone...I just got over my head and am not sure what to do to fix it. Should I hire a CPA or just let it go? I really just want this behind me once and for all.
Thanks all. I appreciate it.
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