Small Business Licence?

[Eli A.]

Just got a letter from the IRS saying I owe them $880 bucks for unclaimed income in the year 2000! True I did the design work and yes I'm the only one to blame, but that's a hefty chunk of change. Anyone have some pointers on obtaining a small business license? At what point is your business large enough to need one, and is it complicated come tax time? Thanks in advance for your input.

[kozik]

I would suggest that you

A: get a certified CPA. pay him the 800 bucks a year to do your taxes as a 'work for hire' freelancer.

he will give you a set of quarterly estimated tax payment vouchers and save your ass.

do NOT be a 'business'. unless your making opver 200 G a year. Then it's endless paperwork and reports.

get a CPA.

[rotodesign]

I second that -- get an accountant familiar with freelance work, it's well worth the dough. Without a pro working for you, you might never know if your state has some nasty law (or juicy loophole) that could affect what you owe. CA used to have an onerous sales tax law that nailed a lot of artist types -- if you delivered artwork for reproduction as disks, mechanicals or any other physical product, you had to pay sales tax on what you earned. If you e-mailed the files, no tax. I believe that was recently overturned, but not before putting a few people through the ringer.

[kozik]

I been using the same CPA for 9 years i always get a return and he knows every trick. it's awesome. He does it right cause he is actually like a 'bonded public servant' so the returns are never questioned etc.

[wally]

what about like a print shop? you'd have to have one then i'd think.

[Darren Grealish]

I need to find out about this unsavory topic. Cause all the money goes into D's pocket at the present. I didn't file last year either so I'm probably eternaly fucked!

[Eli A.]

Cool point Rotodesign. I live in Santa Cruz, CA and I used to check your website all the time not to mention your great interview with Mr. Chantry.

So there is a difference between being a small business and a work for hire freelancer? I've heard if you put more money into the business than you make at the end of the year you do get a percentage back. Does this mean I should go out and buy that MAC I've been waiting for? There is no way I'll make that amount of money during the year on the side of my regular job.

[hammersmith]

From my experience, you wouldn't really need a business license unless you have a location where you are open to the public, and there are like transactions going on. That is obviously not a legal definition, but it works in most cases. If you have a store front print shop, or even like wharehouse space in a commercial area, then I would get a business license. That doesn't mean you have to incorporate or anything, you are just a sole proprietor and can file taxes like one. Back to the license though. You get busted for that kind of thing by your city, not the state or feds. Here in Chicago, they walk around and check on them like once a year. If you are working from home, you don't need a licence. You may need a state tax ID number, depending on what kind of work you are doing. If it would involve charging sales tax, then yes. If you are doing freelance and are getting paid like an independent contractor, then I don't think so. And definitely get an accountant. It saves like a ton of time and will keep you from getting bent over with late fees, penalties, etc.

<font size=-1>[ This Message was edited by: hammersmith on 2002-08-16 17:13 ]</font>

[RichieGoodtimes]

Quote:
On 2002-08-16 16:49, wally wrote:
what about like a print shop? you'd have to have one then i'd think.



If you're a print shop Incorporate! Muther fucking Incorporate! If everything goes to shit you lose the shop but nobody can get to you personally.

[kozik]

Incorporation saved my ass when the label went belly up.