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frogg

Business question...

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I know a few of you all do this as a business. My question is, Do you have a formal business with tax ID and business liecense and all? Is that absolutely neccessary if you are only going to turn a few jobs? Right now I am just doing my own stuff and hooking up friends with some goodies. If you do this as a hobby type money maker do you still have business cards? I am just curious because I would like to do a few jobs and put my name out there but at what point would I need to make it official with the government? Can I still make up business cards and get them out there if I don't have a full on business? Thanks for any input you might have.

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I decided to go ahead and get a DBA(do business as), and registered a business name at the local coutny clerk's office. It only took about 15 minutes, and cost $10. Yeah... I'll have to deal with taxes at the end of the year, but I have a "business", with a business name, website, business cards, etc... once I think gives off a more "professional" image to your customer. Just my two cents...

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Not to get all off topic but... seems we share an interest.  B)

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I got a DBA too. I think you could get away doing small jobs without it, but as my friend firemalt said, it looks professional to have a real business.

Joe

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Guest fivestar

You don't need to get a tax ID or a reseller's license to do side work, but if you do own a business there is alot of things you can write-off as a business expense. 

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yeah, u can write off just about everything u use if ur ink pens. depending on where u live u have to pay state and local taxes, u know federal is already there. and also with the business license u do get bigger and better business. a lot of people that's the first thing they look or ask about, some don't care. but to get paid what ur worth, the bus lic is the way to go.

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We do ours as a side business and still got a DBA, small business checking account, business cards & a website and we do have a tax ID #.  Like previously mentioned a DBA is cheap to get.

Jenny

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Does the DBA come with the tax ID or do you get those seperately? How much more involved are the taxes at the end of the year?

Not to get all off topic but... seems we share an interest.  B)

I recently discovered trackdays and I'm hooked! lol, hopefully the extra money will allow me to attend more. One reason I got the plotter is so I can do my own decal work on the bike. I just thought I'd let others help me pay for it.  ;D

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I'm brain farting on how we obtained our sales tax ID, but for the taxes at the end of the year is simple.  I just save all my receipts from sales and give it to my tax lady..........and she does the rest.

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How about the differances in sole vs LLC vs partnership any good links to help you figure out whats the best type of business to go with?

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Most likely there are links to obtain your tax id # either at your local county clerk's office or on their website. As far as learning about llc, partnership, or sole ownership... just do a search for "starting a business in _____" (your state).

As Benr98 said, having a small business banking account is nice as well. This way customers can write a check to the business instead of your name(again, looks professional). A few other advantages are you can keep all the finances for in the business is one place(incoming and outgoing). This is the only thing I haven't done, which is on my schedule for today  B)

Frogg... just your PM box, I have a few money making ideas that have worked fairly well for me.

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Not to get all off topic but... seems we share an interest.  B)

Wait till I find the picture of me Racing YSR's lol

Wayne

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Yes opening the business checking was free and I did want to present a more professional view of us plus like firemalt said it's a way of tracking in and out cash flow.

Jenny

PS..Firemalt, you can share your money making ideas with me too!!  B)

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I didnt pay a penny for my dba permits. Just filled a few papers and I was done.

JC

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Jenny... Frogg said he started attending "trackdays", so I gave him a few suggestions relating to motorcycle roadracing.

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Ohhhhhhhhhh well Firemalt, I guess you can keep those ideas between the 2 of ya....LOL  B)

Jenny

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I was also thinking about getting a DBA and tax ID sometime soon so i can start a website and be legal.

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I'm of a mind that the sooner you get a bidness license the better off you are. 1) You can buy your consumables and not pay taxes on them 2) You can buy business supplies and equipment and not pay taxes on them 3) You can depreciate buiness equipment 4) You can begin to establish business credit 5) You can right off vehicle expense, a big deduction with the current gas prices 6) How about that 2 week Florida vacation that you want to take? Take it, make a few sales calls .. right it off 7) You get the picture, the list is never ending ......

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Guest fivestar

6) How about that 2 week Florida vacation that you want to take? Take it, make a few sales calls .. right it off

Who has 2 weeks they can take off?  B)

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Hey I can take 2 weeks off.....the problem is having enough cash to carry me thru that time!!  B)

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I basicly just have business cards and a registered business name so i could open a business checking if i wanted to or not, You can do as much as you wish as far as your business is concerned, I dont charge sales tax so i dont have a tax id number, And i just pay tax up front on all my materials so i dont have to pay taxes at the end of the year. I prefer to just make enough for extra cash and keep it small, if it blows up great but if not i am happy with it at a managable size. As long as your not making 100k a year you can probably operate for many years with out worrying about taxes and llc's and all that, And believe me thats when the headaches start.

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