trying to start a mobile auto repair business in ca.?

if i started a mobile auto repair business and cash is the only payment how do the bean counters tax me as a self employee?is there a minimum profit i need to file because it seems like a easy way to wash money. any thoughts?

There is no minimum but the IRS will look for a paper trail. They’ll watch your bank account deposits and withdrawals and if you get audited, they will subpoena all of your customer records and stuff, which can lead to SERIOUS fees and jail time. It is best to keep a solid record book and keep your business separate from your personal finances. When I get paid, I deposit my check into my business account and then write a check to myself for 60% of it. This way, there is a trace of how much I’m withdrawing for personal stuff. I also have a business debit card to pay for business expenses so that I am never reimbursing myself for business expenses. You also have to consider the fact that customers records show how much they pay you. Even if cash is the only payment, checks and debit cards are also considered “cash”, which is not easy to wash. Washing money is not advisable.

San Diego Mobile Auto Body Shop / Paint Scratch Repair.