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starting a business question

E

erealmgraphics

Junior Member
Hi,
I wanted to start my own business but have questions about it. I was pointed to go to my local chamber of business but I have questions about.

1. In order to do a tax write off what do I need? a tax id?

2. do I need to have a business bank account for it?

I want to do image editing, restoration and stuff like that. Custom photos and all that stuff. I plan on using paypal for payment and I'll need to get supplies like paper, ink, camera and some other stuff that may come up.

any website links that you know are helpful with info? Thanks.
 
1: No, your social security number is your tax id

2: You don't have to, but if you get audited, the IRS will frown heavily on you mixing business and personal in the same account. Better have 2.
 
everyone starts somewhere, i assume this is a young'n. You'll need to register your business, get a business license. You'll automatically get a Tax ID# when you do that...ask your local chamber these questions...or google how to start a business in "your state"
 
Originally posted by: erealmgraphics
Hi,
I wanted to start my own business but have questions about it. I was pointed to go to my local chamber of business but I have questions about.

1. In order to do a tax write off what do I need? a tax id?

2. do I need to have a business bank account for it?

I want to do image editing, restoration and stuff like that. Custom photos and all that stuff. I plan on using paypal for payment and I'll need to get supplies like paper, ink, camera and some other stuff that may come up.

any website links that you know are helpful with info? Thanks.
Click to expand...



1) Your SSN is your tax id. Eventually you may want to get an EIN, but that is up to you. Also, you really should register your business as a sole proprietership at the least. It should run you about $15 in your county. This will be necessary to open a business bank account AND will allow you to cash checks written in your business name.

2) No, but you should. It just makes things a lot easier come tax time. Look around, you should find a bank offering free business checking (US Bank does).
 
1. IIRC, your SSN is your tax ID.

2. You don't have to, but it makes things a hell of a lot easier come tax time.

 
Start off doing freelance work. Work from there.

You don't need anything but yourself for that. You will likely have to estimate taxes quarterly as you get paid for jobs.

Getting a business license and seperate account will only be worthwhile when you actually can start doing this mostly full-time. Unless you're just THAT good and already have a customer base, that may not come for a year or two.
 
Originally posted by: Injury
Start off doing freelance work. Work from there.

You don't need anything but yourself for that. You will likely have to estimate taxes quarterly as you get paid for jobs.

Getting a business license and seperate account will only be worthwhile when you actually can start doing this mostly full-time. Unless you're just THAT good and already have a customer base, that may not come for a year or two.
Click to expand...



True, the thing is, I created a few websites, one of them is the one I am working on that is my own.

http://erealmgraphics.com/my_new_web/book/version2/index.html

I want to do the website, where I'll offer services listed below and sell some other items as well on it. I want it to be legal for selling and all that. If tax ID is the social security number then I don't need a tax id to sell? I read that you need a tax id if you are selling onilne. Would you consider the main purpose of this website as something to be taxed?
 
Originally posted by: erealmgraphics
Originally posted by: Injury
Start off doing freelance work. Work from there.

You don't need anything but yourself for that. You will likely have to estimate taxes quarterly as you get paid for jobs.

Getting a business license and seperate account will only be worthwhile when you actually can start doing this mostly full-time. Unless you're just THAT good and already have a customer base, that may not come for a year or two.
Click to expand...



True, the thing is, I created a few websites, one of them is the one I am working on that is my own.

http://erealmgraphics.com/my_new_web/book/version2/index.html

I want to do the website, where I'll offer services listed below and sell some other items as well on it. I want it to be legal for selling and all that. If tax ID is the social security number then I don't need a tax id to sell? I read that you need a tax id if you are selling onilne. Would you consider the main purpose of this website as something to be taxed?
Click to expand...

Assuming you are in the US, the only time you would NORMALLY use your tax ID number is when you file taxes or work for companies (as in, 1099 contract work). Now, if you do this then you might want to get an EIN simply so that your SSN is not floating around everywhere.

It is LEGAL to sell anything you want. You just have to make sure you file your taxes properly. Tax laws vary from state to state. In general, you will need to collect sales tax for business conducted within your state.
 
Originally posted by: SarcasticDwarf
Originally posted by: erealmgraphics
Originally posted by: Injury
Start off doing freelance work. Work from there.

You don't need anything but yourself for that. You will likely have to estimate taxes quarterly as you get paid for jobs.

Getting a business license and seperate account will only be worthwhile when you actually can start doing this mostly full-time. Unless you're just THAT good and already have a customer base, that may not come for a year or two.
Click to expand...



True, the thing is, I created a few websites, one of them is the one I am working on that is my own.

http://erealmgraphics.com/my_new_web/book/version2/index.html

I want to do the website, where I'll offer services listed below and sell some other items as well on it. I want it to be legal for selling and all that. If tax ID is the social security number then I don't need a tax id to sell? I read that you need a tax id if you are selling onilne. Would you consider the main purpose of this website as something to be taxed?
Click to expand...

Assuming you are in the US, the only time you would NORMALLY use your tax ID number is when you file taxes or work for companies (as in, 1099 contract work). Now, if you do this then you might want to get an EIN simply so that your SSN is not floating around everywhere.

It is LEGAL to sell anything you want. You just have to make sure you file your taxes properly. Tax laws vary from state to state. In general, you will need to collect sales tax for business conducted within your state.
Click to expand...

Yep, no business status required as long as your taxes are being properly filed. Just research how to pay taxes from contract work and you're golden.
 
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