Anyone in here ever register a buisness?

[LordJezo]

Anyone ever do it?

Looking for a way to save in taxes since I am considered a consultant..

I could register myself as a buisness and then be able to make everything a buisness expense..

 

[T2T III]

Are you talking about registering a business, or forming a company such as a limited liability corporation? If you go LLC, the process takes about a month and there are about $100 in fees. I'm in the process of setting one up for myself at the moment.

Edit: your state or community might also require you to have a business license - depending on the type of work. You might want to check with your local small business support center. I have some of these resources in my area and they are a great wealth of information on providing you with the proper steps and requirements.

 

[LordJezo]

Well, I am really not sure which one to do...

Any ideas?

I am a consultant working for a big company. I get paid through a head hunter who gets paid by the company. Technically I work for myself. The head hunter guy is sort of an agent, but, all the transactions are in cash so at the end of the year I will be doing all my own taxes.

I figure that since I work for myself and are not under contract by anyone, I am doing all my own work and that by registering as a business or whichever one is the best, I would be able to save money in taxes since most of what I do could be considered a business expense.

 

[sciencetoy]

It's very easy to set up a sole-proprietor company. The part you usually register is the business name, to make sure nobody else was using it first. You need to set up your bookkeeping so that you can get the numbers straight, you may need to get a tax ID number if you are dealing with sales tax, you need an employer ID number if you are going to have employees.

Your other choice is incorporation, which takes a bit more time and money. There are reasons pro & con for incorporation vs sole-proprietor, which you can look up on the internet or any basic start-your-own-business book.

Note that if all of your business income comes from one client, the IRS will consider you an employee and disallow all of your deductions. That is, if they find you. It's a hot topic with them right now, so they're looking for that.

How hard would it be for you to get another client or two?

 

[LordJezo]

Originally posted by: sciencetoy

How hard would it be for you to get another client or two?

Almost impossible.. if you mean another big job project.

I put in 35 - 36 hours a week doing my one job, almost full time.

But, I have been considering doing side work as well, doing local computer repair and such, would that count as another client or would it have to be another full time cleint as well with many more hours put in?