Taxes - What Business Activity Code and Busines Type?

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Discussion Overview

The thread centers around discussions related to tax filing for Pampered Chef consultants, specifically focusing on business activity codes, types of business descriptions, and experiences with various tax software programs.

Discussion Character

  • Anecdotal
  • Opinion-based
  • Exploratory

Main Points Raised

  • One participant, identifying as a consultant, mentions using "direct sales" to describe their principal business type.
  • Another participant shares their experience of using the business activity code 454390 for direct sales.
  • Several users discuss their experiences with online tax programs, particularly TaxAct, noting its user-friendly features and cost-effectiveness.
  • One participant expresses uncertainty about filling out the 1099 information and seeks advice from others.
  • Another participant shares their experience of using TurboTax and considers whether to switch to an accountant due to moving between states.
  • Some participants inquire about the LLC status of their business, with responses indicating that they do not operate as an LLC.

Areas of Agreement / Disagreement

Views differ on the best software to use for tax filing, with some participants favoring TaxAct while others prefer TurboTax. There is no clear consensus on whether to seek professional accounting help.

Contextual Notes

Participants share personal experiences and insights related to tax filing as independent consultants for Pampered Chef, reflecting a range of familiarity with tax processes and software.

Who May Find This Useful

Consultants navigating tax filing for their direct sales business may find the shared experiences and software recommendations relevant.

jrstephens
jrstephens
Messages
7,085
How do you describe you principal business type? Just say "direct sales"

What Business Activity Code do you use? I have NO IDEA about that and there is SO MANY to choose from!

I NEED HELP FROM YOU CHEFFERS!

I think I can do everything else, notice I said think.
 
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  • #2
Just bumping up - I NEED HELP!get your thinking caps on cheffers!:D
 
Hey, I know what you are talking about! I've been doing my own taxes for a few years now. The code for Direct Sales is 454390.

Here is the piece that I copied:

454390 Other direct selling establishments (including door-to-door retailing, frozen food plan providers, party plan merchandisers & coffee-break service providers)
 
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Are you using one of those online tax programs? How are you doin git w/o th epaperwork from PC yet?
 
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  • #5
dannyzmom said:
Are you using one of those online tax programs? How are you doin git w/o th epaperwork from PC yet?
Click to expand...

I am using www.taxactonline.com I am not doing it completely just filling in the information I can while I wait for my documents. I always do this each year when my documents start coming in I go ahead and put them in and get as far as I can while I am waiting on the rest of them. That's what I love about this online program (they may all let you do this I have not tried any other) as you enter your information in in the top right corner it tells you how much your refund is at each step. Of course it gets your hopes up in the beginning before all of your income if put in b/c it looks like you are getting the "earned income credit" and get lots back! ha!
 
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  • #6
jenniferlynne said:
Hey, I know what you are talking about! I've been doing my own taxes for a few years now. The code for Direct Sales is 45390.

Here is the piece that I copied:

454390 Other direct selling establishments (including door-to-door retailing, frozen food plan providers, party plan merchandisers & coffee-break service providers)
Click to expand...

Thanks, Jennifer!! I knew yall would know without me having to look through everyone of those codes!
 
jrstephens said:
I am using www.taxactonline.com I am not doing it completely just filling in the information I can while I wait for my documents. I always do this each year when my documents start coming in I go ahead and put them in and get as far as I can while I am waiting on the rest of them. That's what I love about this online program (they may all let you do this I have not tried any other) as you enter your information in in the top right corner it tells you how much your refund is at each step. Of course it gets your hopes up in the beginning before all of your income if put in b/c it looks like you are getting the "earned income credit" and get lots back! ha!
Click to expand...

Does it do state AND federal? Is it free?
 
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  • #8
dannyzmom said:
Does it do state AND federal? Is it free?
Click to expand...

It is $15.95 for State and Federal and that includes e-filing.
 
jrstephens said:
It is $15.95 for State and Federal and that includes e-filing.
Click to expand...

dang!!!
That's great!!
Where do you get the program?
 
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  • #10
It's all online at www.taxactonline.com They walk you through each step of your return and do check points at the end for accuracy. I have used them for 5 or 6 years now. You can even choose for them to keep general information stored and not have to enter it from year to year - I love that! I think I found it via the IRS website one year, but I cannot remember how I discovered them.

They have different levels that you can choose from. $15.95 is the highest. I love it b/c they are accurate and less than I could ever buy a cd program for.

You can do your whole return and they do not charge you until you submit. So, basically it is free to see if it does all you want it to do. They never charge until you hit the ok button to submit.

They have even found errors in mine and sent it back for correction before they filed it before!! Which I think it awesome.
 
Tax Act is awesome I've used it for 5 years and never had a problem with them. I love it. I'm just not sure how to fill out the information for the 1099 stuff on it. This is my first year doing it so I'm learning. I don't want to go to someone else and let them do it but it looks like I may.
 
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  • #12
kat29 said:
Tax Act is awesome I've used it for 5 years and never had a problem with them. I love it. I'm just not sure how to fill out the information for the 1099 stuff on it. This is my first year doing it so I'm learning. I don't want to go to someone else and let them do it but it looks like I may.
Click to expand...

You wil not have any trouble. I have been looking at it today and it walks you through it. You just have to add a Schedule C in the Business Income Section.
 
I will have to tell my DH about this he loves turbo tax but this program is much cheaper
 
I have always used H/R Block turbotax, but this year Im not sure if I should get an accountant because we moved, and I have lived in 2 states. I have never had an accountant...anybody have experience either way?
 
we moved to a different state last yr I believe the only problem my DH had was he had to call his company that he works for and they had to send a different w-2 form 1 for what we made and paid in state 1 and another for what we paid in state 2 we dont pay state taxes here and we filed with turbo tax
 
Okay I have a question...I wrote the code down and all for the direct sells stuff but what exactly do you put in the box that says "describe the general business activity and the type of product or service for this business." Do I just put Independent Consultant for selling Kitchen Tools or what??? I'm not sure what to type in.
 
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  • #17
kat29 said:
Okay I have a question...I wrote the code down and all for the direct sells stuff but what exactly do you put in the box that says "describe the general business activity and the type of product or service for this business." Do I just put Independent Consultant for selling Kitchen Tools or what??? I'm not sure what to type in.
Click to expand...

I just put "direct sales"
 
what accounting method did you select? I just left it at Cash but it's not Cash or the other one. Thanks for your help Jennifer.
 
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  • #19
I put Cash b/c I know it is not the other one, ha! I hope it is help, this is my first year and I am learning as I go and hope neither one of us gets in trouble! ha!:D :eek:
 
Okay I'll leave it on that. I have no idea. It's my first year of doing this too, don't really want to go to an accountant. Rather do it myself and get it back faster. LOL!! I think I pretty much got everything else, it was just them asking the stupid questions on how you would describe it and the accounting method. I was thinking Other on the accounting method but wouldn't know what to put down in the blank. I'll have to do some more research on it and see. If i come across anything I'll let you know. Thanks again for your help. I do appreciate it. :)
 
Turbo TAxFor those of you using Turbo Tax, which one did you buy, the Deluxe or Premier version?
 
Have you got your 1099 yet? Just wondering!
Melissa
 
What about LLC? Are we?
 
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  • #24
Shonda1107 said:
What about LLC? Are we?
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Not to my knowledge. I have never seen LLC behind anything anyway.
 
No we are not LLC.
 
strasfamily said:
For those of you using Turbo Tax, which one did you buy, the Deluxe or Premier version?
Click to expand...

I was planning to get TurboTax Home & Business. It costs the most (around $90, including state) but it has all the questions for small business AND the deduction maximizer. I don't know if this is the best software, but I've been using the basic TurboTax for years and I really trust it. Since this is my first year filing with PC, I want to make sure I do everything right!

Since it's free until you submit it, maybe I'll try a few different ones online and see if they come out the same. It's time consuming but I want to get back the most that I can.
 
I plan on doing the same ... we used TaxAct online last year ... and I am going to try their Ultimate bundle and at the same time use the Turbo Tax Home and Business, and whichever program gives me the most return for the least amount of money, I will use them to file. It's $22.95 (fed and state filing) with the TaxAct ultimate and $75 plus $26.95 for Turbo Tax to file both state and federal. I am hoping TaxAct will be better because I don't want to spend a lot of money.
 

Frequently Asked Questions

What is a Business Activity Code?

A Business Activity Code is a six-digit code assigned by the IRS that identifies the primary business activity of a company. It helps the IRS categorize businesses for tax purposes and is used on tax forms, such as Schedule C for sole proprietors.

What Business Activity Code should I use for Pampered Chef?

For Pampered Chef, you would typically use the Business Activity Code 454390, which corresponds to "Other Direct Selling Establishments." This code is appropriate for businesses that sell products directly to consumers without a physical storefront.

How do I determine my business type for tax purposes?

Your business type can be determined by how you operate your business. Common types include sole proprietorship, partnership, corporation, or LLC. For Pampered Chef consultants, most operate as sole proprietors, which is the simplest structure for tax reporting.

Do I need to file taxes if I earn income from Pampered Chef?

Yes, if you earn income from Pampered Chef, you are required to report that income on your tax return. Even if your earnings are below a certain threshold, it’s advisable to report all income to avoid potential issues with the IRS.

Where can I find more information about business activity codes and types?

You can find more information about business activity codes and types on the IRS website, specifically in the instructions for Schedule C and other relevant tax forms. Additionally, consulting with a tax professional can provide personalized guidance based on your specific situation.

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