Dealing with other businesses?

[mwdesigncreate 0]

Hello all!

Anyone know if I can do some printing(labels & such) for businesses, but not be set up as a legal business myself?

The thing is, is that I do some printing & vinyl work from home on the side for the extra cash, but would like to try to land some bigger, more regular work from other businesses. Can I do this, without being slapped with some big tax bill at the end of the year.... or anything like that? or do I NEED to be set up as a real business?

Any advice on this would be great. Thanks,

[devildog 0]

Your going to need a business license and tax id because there is a good chance that other business may "right off" the expense of doing business with you. It is at that point that the feds will want their share from you. Anytime you are dealing with another business you want to protect yourself. Most businesses will only want to pay with a check, and it is those checks that will be used to track their purchases for tax purposes.

The bottom line is you need to protect yourself. A business license is cheap, $35 a year where I live, and takes 5 minutes to get. The Federal Tax ID is free and can be done online. You will also need a business license for each county you are doing business in and may want to also check city ordnances for other requirements.

It's not a big deal to obtain the necessary documents. Just make sure you are charging your customers the appropriate taxes and have an account setup to hold those funds until it's time to pay uncle Obama. Don't forget that a business license and tax id will also open the door for wholesale accounts with many suppliers!

[locknload1 17]

  :thumbsup:

Reducing your tax liability is a slippery slope for many in business for themselves and the "Cash is King" rule seems to work well for a great many (don't look at me) that never get caught while enjoying the competitive edge of at least a 10% "discount". 

One person I know refuses to get paid unless it's on the web (which is a gray area in sales tax law), he then offers his install as "free delivery" thus, in his mind at least not selling traditionally, avoiding sales tax and giving himself an edge of at least 10% against the competition. I'm not certain enough if this practice is legal or not to try it myself but he gets lots of business this way and saves a whole bunch of money on pocket lining bureaucracy like licenses and permits that really do very little to aid or protect the consumer any way.

If you live in an area like I do where you see very little of your tax dollars at work anyway I have to say I do envy the bravado. Though, some in other areas may argue based on other pros and cons. And still, someone that pays all the fees and costs associated with doing business in their area will most definitely offer advice to the opposite side of the fence.

Fact is there are plenty of businesses out there that will forego the 1099 benefit to save 10% on their cash on cash budget so the choice is yours based on your own local advantages and disadvantages to taxes and other related fees associated to "business as usual".

RG

[xJoey Dubsx 42]

I know a guy, wink wink, who has sold a banner to his friend's work. They just paid using their petty cash.

[screenprintr 319]

Would you cut vinyl with Scissors? So why have a phony business. It doesn't cost much for the certicates. You have to work with your town, county, and fed tax id. That's it.

So you spend about $300.00 and you're legal.

I'm sure you'll get business from people who pay cash only, but you can't deduct that.

[mabscotthandyman 1,410]

Be a legal business and keep good records. Some states have very high fines and penaltys for non compliance of business registration and not charging and paying sales tax.

[john! 1]

You tell me you cannot get legit for whatever reason but yet you have all these machines and equipment in your signature? Wow.

[locknload1 17]

Would you cut vinyl with Scissors? So why have a phony business. It doesn't cost much for the certicates. You have to work with your town, county, and fed tax id. That's it.

So you spend about $300.00 and you're legal.

I'm sure you'll get business from people who pay cash only, but you can't deduct that.

I believe the biggest disconnect on

[screenprintr 319]

I grew up in LA, and owned a business. It doesn't very that much.

Pay Cesar what belongs to Cesar.

[locknload1 17]

I grew up in LA, and owned a business. It doesn't very that much.

Pay Cesar what belongs to Cesar.

No offence Brother but I'm certain that must have been before a few of our city managers and police chiefs decided they needed to get paid at least a million plus a year just to make ends meet. Well, that and the millions in personal loans we're still finding.

Besides, you can't tell me it's not become tougher to do business in CA then many other states, For pete's sake, even  Hollywood movie makers decided some time ago that they would rather shoot in New York than pay our higher fees here.

RG

(He who is without sin among you, let him be the first to throw a stone)

[bayotle 26]

Well if it's like were my shop is the businesses are required to pay personal property tax on everything at the location. 

To keep the expenses to a minimum I brought in a ton of equipment I had paid for out of my own pocket for use long before the shop was ever a thought. I've also brought in a refigerator and other 'creature comforts'.

I was informed a few weeks ago that come 12/31, if it's in the shop, I'm required to pay personal property taxes on everything, including the refrigerator from my house and my sisters coffee pot (which really sucks cause i dont drink coffee!)

The government sticks it's hand in way to much if you ask me - I told them when they were here to get what they can because the doors will be closed end of next year and after that they aint gettin jack! (which reminds me, i need to pull the bottle of jd i got stashed in the back before they make me get a liquor license!!!!  :- )