Who owns their own business? some questions for you...

[bentwookie]

What legitimitizes a business in the gov. eyes.
A business license? a certain income bracket? please help
if you are the sole proprieter, what tax forms do you fill?

 

[Freejack2]

There isn't much of anything you need to do. If you are a service sole propietership business (no equipment or products to be resold) and you have all checks made to your name, all you have to do is pay income tax of what you estimate you'll make the next quarter every quarter. If you want to use a DBA (Doing business as) then you'll need to file a DBA with the local government office. If you plan to resale you'll need a resale #. Can't remember wether you get this from the IRS's or your states tax web site.
Sales taxes also need to be paid quarterly.
I would advise to use the services of an accountant. In the long run the accountant will probably save you money.

 

[dman]

If you think you'll be having any kind of income from the business, look into setting up an S-Corp. That way you isolate your personal property from the business in the case of a lawsuit or bankruptcy. There may be ways people can still get at you, but, you are more protected then just having a sole prop or partnership.

An Accountant can do it for you for a few hundread bucks... or you can do the paperwork yourself and just pay the filing fees, but might as well get an accountant then you can use them to do your year end and/or quarterly taxes too.

There are varying state costs associated w/ any business. For example, there is a $1xx fee yearly in Florida to keep your business on record.

 

[PsychoAndy]

Originally posted by: bentwookie
What legitimitizes a business in the gov. eyes.
A business license? a certain income bracket? please help
if you are the sole proprieter, what tax forms do you fill?

Define "legitimate." Thats a very broad stroke.

You can be "legitimate" and still be corrupt. Look at Bernie Ebbers and Scott Sullivan.

-PAB

 

[PsychoAndy]

Originally posted by: dman6666
If you think you'll be having any kind of income from the business, look into setting up an S-Corp. That way you isolate your personal property from the business in the case of a lawsuit or bankruptcy. There may be ways people can still get at you, but, you are more protected then just having a sole prop or partnership.

An Accountant can do it for you for a few hundread bucks... or you can do the paperwork yourself and just pay the filing fees, but might as well get an accountant then you can use them to do your year end and/or quarterly taxes too.

There are varying state costs associated w/ any business. For example, there is a $1xx fee yearly in Florida to keep your business on record.

Doesnt subchaper S require a chapter C corporation to operate under?

Accountants will know as well as a lawyer. Mine said $350 for a new chapter C for profit.

IIRC, FL is $150 a year to stay "active".

If your business makes money, it gets taxed as profit. If you get a paycheck, you have to pay payroll taxes for the business as well as personal income taxes. If you make profits on your original investment, you get taxed as a capital gain.

Is so complicated, it could only come from the U.S. Government!

-PAB

 

[bentwookie]

are there business writeoff limitations to the size of your business. Anyone hear of the suv loophole? i.e. own a business get a free suv.(free $24000 writeoff)

 

[PsychoAndy]

Originally posted by: bentwookie
are there business writeoff limitations to the size of your business. Anyone hear of the suv loophole? i.e. own a business get a free suv.(free $24000 writeoff)

A tax writeoff does not change the size of your business. All it does is reduce taxable income.

I have heard of no such "SUV Loophole." There is no such thing as a free SUV. Someone still has to pay for it.

Where the hell did you learn this stuff?

-PAB

 

[bGIveNs33]

An S-Corp is the way you want to go. What that basically means is that you are incoporated, so your business becomes its own entity. So, as you've heard, if the business gets sued, nothing can be tied to you. Also with the s-corp, your income flows directly into your personal income, which means, no coporate income tax(which is a bunch of liberal crap to begin with). In Florida you need an occupational license. I'm sure you need something like that in California. Look up your local tax collectors office, and ask them. Also, depending on what you are going to be selling, you might want to get a "resellers ID". That way, you can get all of your merchandise tax free, and just charge your customers tax. But if you aren't selling a taxable good(i.e. webpage, hosting, computer repair, custom programming) then, you don't need that. If you need any more information LMK.

-Billy