Registered Business

I was curious how many people on here are actually a registered business with a tax ID number and everything?

Originally Posted by regidroz

I was curious how many people on here are actually a registered business with a tax ID number and everything?

It really depends on a lot of factors, the first being the laws of your jurisdiction. It's going to be different in every State. In some localities you don't need a business license/tax ID number if you are running a business under your name and have no employees. You simply use your SSN. I personally would keep this as a "hobby" or incorporate into some kind of LLC/Corp to limit personal liability.

I applied for a tax number. It wasn't required in my state. I did it because, as an accountant, it looks better if I keep track of my own business ventures at least as well as I suggest that my clients keep track of theirs.

Yep I do.

Originally Posted by jghilino

100% agree with that, but i do report my income just to be safe

I'm not an accountant but I'm reasonably sure even if it is a "hobby" there is a threshold where you should be reporting income. When you are a "business" you open your self up to a whole new standard in taxes and liability. If you are running a business that is not in some way Incorporated to protect yourself, you've lost your mind.

I do.

Originally Posted by eesakiwi

taxable income? My god, i just scrapped a $1500 tv & sold if for scrap & got $7.

Thats a $1493 loss.........

On the other hand, if its taxable, i could write off all of my expenses. Which include everything except for my side of the double bed. Well if you saw my place you'd understand..

lmao

Yeap, I do. I figured if I am going to do it then do it right.. I find that most of the business that I pick up from want that.

A word to those that do not have a tax id. If you run under self employed or sole proprietorship you cannot advertise as a business name; unless you have filed as a DBA. You technically cannot advertise as anything other than your full legal name. Example: . As a sole prop scrapper I can only advertise on business cards, vehicle signage, flyers etc with my name Russell xxxxx scrap metal.. I cannot display or advertise as Heavy Metal Recycling. Your ssn represents you in place of an ein #. I see this all the time and unfortunately too many blind cheeks are turned. I see business cards, craigslist ads or truck signs mainly saying things like big mikes scrap metal with the phone number 1234567. Next week ill see another ad saying something like superior scrap metal with the same number 1234567. Its a ghost chase when people do that sort of stuff. Its rouge and illegal and makes you look unprofessional.

The problem and the reason you cannot legally advertise as a company name until you have legally filed as such is for several reasons. If you advertise as company A, run into some trouble, now all of a sudden you advertise as company B. There is no way to trace or ensure your compliance as a company. your ssn acts as your tax id which in turn leaves you responsible for your actions , when your a legal entity with the exception of a DBA that allows for a legal name change the company assumes responsibility.

Last two years I ran as self employed or under hobby income because I also have a full time job. As of January 2013 I am a legal entity filed as an LLC, because I intend on working for myself so I need more protection. It just depends on your situation and how well you need to protect your own neck.

It comes down to expansion. You can really own a job not a company without proper filings of licenses. Neither are a bad thing, there are +/- trades offs with both.

go get a business licence lol 35 bucks you name your self whatever you want

Originally Posted by savage85

go get a business licence lol 35 bucks you name your self whatever you want

Where I live, a business license costs about $250. If I want to "call it anything I want", other than my own personal name, I need an incorporated company. That'll cost about $500 if you do as much of it yourself as you can. I had a lawyer do it for me, as the extra $350 was worth it IMO to make sure it was done properly so my backside is as covered as possible, and as well because all the paperwork would have driven me nuts. Another plus was that having a lawyer do it saved me what would have been at the very least a day or two of my own time I would have spent in research and such. But let's pretend I did it all myself anyways, and it cost me $500. Total cost is now $700. That's a pretty far cry from "35 bucks lol". You going to refund me the extra $665? Wish someone would