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I hope I`m posting in the right category.
Hello everyone,
I have a blog and a few directories where I`ve made about 5k with Google adsense in 2006. Now, I`ve never owned a business and I want to know if I should register this as a business.
You say it`s simple, can you please explain in more details? Thanks in advance
Go to your city, or county courthouse and apply at the assumed name office. Sole Proprietors pay $7-$13 in Texas to register their business name (dba- doing business as) . Partners pay $15-$20 and it cost me $25 to register my corporation dba with the state.
Call Patrick Jaikaran at 817.478.4470 he is the best CPA I know of. He has customers all over the U.S. He can explain in better and greater detail about setting up your business. He works with small mom and pop businesses, to large corporations.
Hope this helps!
The way I look at it is a business or LLC,INC, S-CORP etc. are made so there is no personal liabilities on either the owner/stock holders. So if you have a website that is unlikely to have a lawsuit against yourself, then why do such a thing. I know its hard to figure out if your gonna be sued but its part of doing business.
On the other hand, what happens if you cannot run it anymore? Is your family going to not have an income, do you want to protect your name (domain name) these are items that I would look at also. I do know people who have a brick and mortor business and didnt incorporate untill 15 years in business. So it really is all up to you.
PS sraza was right about the tax deal
Also, depending on what state you are from, you`re from, (I`m too lazy right now to look at your profile), some states see a certain amount can be considered a hobby and is not necessary to consider as a business income.
North Carolina for instance is, I believe like $400 a month. Please don`t quote me as I`m not sure about this figure and it`s early morning right now so the old brain isn`t completely geared up. But it is a good idea to consult an attorney to see where you stand like sraza stated. CSPURGEON has a great point when it comes to making sure you are covered "just in case".
All in all, it`s pretty much where you decide to go with this. If it`s something which you see at staying at the level you are at right now or if you plan to grow.
The main thing is have fun at what you are doing. One of the factors with a new business owner is, they start looking at the business as a chore or just another job and start dreading working with it. I think this leads to why so many businesses fail in their first few years of start up.
Have fun.
Dan
wazimm,
I am a CPA and am very familiar with taxation, primarily federal, but also main concepts of state taxation. Contrary to what sraza said, regardless of whether or not you are legally recognized as a business, you have to recognize your income on your personal tax return. So, if you made $5,000 last year, in addition to what you make in other jobs, ventures, investments, you have to pay taxes on it. Federally, there is a schedule C or schedule C-Z (refer to irs.gov) that you are required to fill-out. This is where you can deduct your business-related expenses (hosting fees, insurance, cell phone for business use, dinners with potential clients/key customers, etc.) from your revenue, giving you a net income. If you structure your business wisely, you should have little to no tax liability at year-end. Also, please remember, avoiding taxation is a felony, but minimizing your tax liability is well within the rules! Hope this helps.
Honestly,
You should incorporate you business as either a S or C corp. No matter what business you are in. Our company offers that service for start up and small companies. We also can help with taxes and funding. What type of business are you looking to start? And is that business based on a realistic ecnonmic model? I don`t want to sound negative it`s just many people come to us with unrealistic business models and we have to tell them no. We will never take on a client without telling them the truth about their idea. Still if you want to start a business contact us.
I think you should make sure the business complies with all business regulations at all times before you decide which is the best structure for your business.
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