Starting a business in the U.S.

[xiayu]

Can anyone please give me some advice about how to formally start a business. My company, Subliminal Imaging, never got around to acquiring a business license and filing taxes and such. I've had A/V students ask me if they could intern for me but since I'm not formally a company they couldn't. Also I've never been able to write off equiptment and other costs either, and I would like to.

[holly]

Whew, this is too big a topic. First you decide what KIND of company:
SOLE PROPRIETORSHIPS
PARTNERSHIPS
CORPORATIONS
LIMITED LIABILITY COMPANY (LLC)

Sole Propietorship is easiest. It is basically YOU filling out a different tax form which allows you to take all your expenses off your taxes. Partnership is good if there are two of you who do everything and you trust each other. Corporation is next level, but there has to be 3 or more in an organized structure and taxes get complicated (you will need an accountant). LLC I only know from scams on eBay so it must protect you from being sued after everyone wants to kill you....

Check out the Small Business Association (http://www.sba.gov/starting_business/) website. SBA is there to help you, but don't go to the seminars of local business "leaders", mostly is old Eurowhite men who don't think very well outside the box and can be insulting if they don't understand the industry (my experience).

[xiayu]

Originally posted by holly
LLC I only know from scams on eBay so it must protect you from being sued after everyone wants to kill you....

You're absoultely right about that!

Originally posted by holly
Check out the Small Business Association (http://www.sba.gov/starting_business/) website. SBA is there to help you, but don't go to the seminars of local business "leaders", mostly is old Eurowhite men who don't think very well outside the box and can be insulting if they don't understand the industry (my experience).

I actually came to that website via google search but besides the fact that I know now that I will be a Sole Proprietorship, for simplicity, I didn't find it easy to nagigate their "Free Small Business Startup Guide".

[holly]

If you are SOLE PROPRIETORSHIP all you really need to do is a D.B.A. (doing business as...) which is generally an announcement in your local newspaper (call the newspaper classifieds, they will tell you more info). Then you just start saving ALL receipts. Your business' tax ID number will be your social security number. It's really that simple, but you will need an accountant at the end of the year.... Hopefully the money you save will pay for the CPA.

[xiayu]

What about a business license?

[littlecatalyst]

up here in canada if you want to incorporate a company it's pretty much the same drill (sole, corp, LLC....) except that it could be a federal or provincial incorporation...

don't knwo if its the same down there in washington, but up here to incorporate you can either pay a lawyer $1600 to do your name search and paperwork, or just go down to the ministy and file thepaperwork yourself which costs about $250 (but you get a numbered company, not with your name... then have to do a "name change" for another $200) i know its a different country, might not be that helpful.. just if you find yourself needing a lwyer, three's probably a much cheaper wayaround that!

you also can get insurance alot more easily....

[holly]

Originally posted by xiayu
What about a business license?
The DBA takes care of that. You are using your social security number for the business (which is really you anyway). You don't need a license and you don't need to register at your county clerk's office unless you are doing a partnership or corp. You remain liable, of course, but you will be personally liable unless you do a corp or an LLC.

Don't over complicate it.:love2:

[LEVLHED]

yeah thats pretty much it. its stupid easy in USA to hang out yer shingle.
I argue that at the end of the year you don't even really need an accountant if you kept good records. its all pretty much spelled out in the tax forms.

[xiayu]

Well I want to be able to have an intern. So I need a business license for that. I do that at the county clerk's office?

[holly]

Yes. You will have to look up your company's name in a big book. If it's not taken then you fill out some forms and probably pay a small filing fee. It will take a few hours, depends on how long you have to stand in line.
;)