ok, so I have been shooting a couple of jobs under the table now and want to go legal. it's just the right thing to do. What do I need to do to do that. I'm hopeing for some help here. I have tried google and I keep getting words like tax id number, and small business licens but no one can tell me what I have to do to get these.
your guys's legal system scares me..but I'm canadian so pretty much everything scares me...hahaha
KIDDING!!!!
Be careful with an accountant, they're not exactly cheap. I know lots of people with legit small businesses who've never gone that route, but again, I'm in Canada so admittedly in the states it might be different.
You can be a sole proprietor and use your SS number instead of a Tax ID. You will be required to pay estimated quarterly taxes. If you decide to incorporate and employ people then a tax id (EIN) will be needed.
SO a DBA (trade name) and a tax resale license is what you need.
In Arizona I got a register of trade name and tax resale license from the state. Call the secretary of state in your state they will have all the info for you.
i am a fulltime freelancer, so i say this with confidence:
run (do not walk) to the library/bookstore and get this book.
nolo press offers a great line of books for small biz ppl like us.
you don't need an EIN if you're a self-employed, small shop. you can register as a sole proprietor and use your SSN instead.
these books will help you determine if you're actually a sole proprietor or if this is considered a "hobby" instead of a business.
i suggest that you read this book (and others in the series) and THEN talk to a small business accountant. that will make your time worth much more, as you will have a foundation of knowledge and will be able to have a full-on discussion rather than a "talking to."
... these books will help you determine if you're actually a sole proprietor or if this is considered a "hobby" instead of a business.
... i suggest that you read this book (and others in the series)
Thanks for the book suggestion muckpond. I thought I would jump on the bandwagon too. I did a search for the book on Amazon, and noticed there are newer editions than the 7th edition you linked.
