I have created a new tread to follow up with the one created before. In order to have this forum clear, I am copying the information here:
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Originally Posted by lzamora on 10/08/05
I have a couple of ideas (that might not worth a penny), but I want to know, what should I do first? register my bussines before goverment or I can launch with out it and then when it goes up, then register my company? Also, most of these enterprises, just go up and I'm wondering if they pay taxes, or what? Maybe I just keep a good track of earnings and at the end of the year I do evalute to report to IRS.
Second though is, should I partner with a webhost company? or just pay for the basic service and upgrade as necessary? I saw you (Andrew) partner with NURV in several places, should I do the same? do you recommend to do this? Who do you partner for web design? or you pay for the service?
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Reply from: IslandGuy on 10/11/05
I might be able to help out a little here. Andrew is perfectly correct that you can just be self-employed and file taxes that way ... you just need to fill out a different type of tax form than the one you fill out if you work for someone else. This allows you to write off expenses of the business - things like your computer even, at least for the percent of time you use it for business and that equivalent value - but (and it's a big but), the IRS usually will only accept it as a business if you actually make money. Otherwise, they tend to consider things a hobby and although you have to pay taxes on the income, you don't get to write off your expenses.
Actually, if you do get involved in some self-employed stuff, most instances can be handled with any one of the computer income tax softwares, as long as you be certain to pick the one that deals with small businesses or self-employment (it's not the basic package but a more expensive one, but it leads you through every possible scenario).
Incorporation is a whole other deal, but it can be simple too if it's a simple corporation. That is dependent more on your state's law though, so I can't really give you much advice. Your local state government should have an info line you can call to see what they require. The main advantage to incorporation over self-employed (depending on what you are selling, making or whatever) is that if you are incorporated and get liability coverage, someone has a tougher (and hopefully impossible) time getting any of your personal assets (like your house) if they were to sue your business. If you're just self-employed, they can potentially get at your personal assets much easier.
At least that's how it was when I was part of a small corporation and I know it depends upon where you live, so you really need to talk to someone in government, but that should be free (after all, that's what we pay taxes for, right?). Incorporation is great for tax benefits and protecting yourself, but there are costs involved with it too, so you really need to check things out.
Don't know if this helped, but hope it gives you a little idea or a place to start from anyway.
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Originally Posted by lzamora on 10/08/05
I have a couple of ideas (that might not worth a penny), but I want to know, what should I do first? register my bussines before goverment or I can launch with out it and then when it goes up, then register my company? Also, most of these enterprises, just go up and I'm wondering if they pay taxes, or what? Maybe I just keep a good track of earnings and at the end of the year I do evalute to report to IRS.
Second though is, should I partner with a webhost company? or just pay for the basic service and upgrade as necessary? I saw you (Andrew) partner with NURV in several places, should I do the same? do you recommend to do this? Who do you partner for web design? or you pay for the service?
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Reply from: IslandGuy on 10/11/05
I might be able to help out a little here. Andrew is perfectly correct that you can just be self-employed and file taxes that way ... you just need to fill out a different type of tax form than the one you fill out if you work for someone else. This allows you to write off expenses of the business - things like your computer even, at least for the percent of time you use it for business and that equivalent value - but (and it's a big but), the IRS usually will only accept it as a business if you actually make money. Otherwise, they tend to consider things a hobby and although you have to pay taxes on the income, you don't get to write off your expenses.
Actually, if you do get involved in some self-employed stuff, most instances can be handled with any one of the computer income tax softwares, as long as you be certain to pick the one that deals with small businesses or self-employment (it's not the basic package but a more expensive one, but it leads you through every possible scenario).
Incorporation is a whole other deal, but it can be simple too if it's a simple corporation. That is dependent more on your state's law though, so I can't really give you much advice. Your local state government should have an info line you can call to see what they require. The main advantage to incorporation over self-employed (depending on what you are selling, making or whatever) is that if you are incorporated and get liability coverage, someone has a tougher (and hopefully impossible) time getting any of your personal assets (like your house) if they were to sue your business. If you're just self-employed, they can potentially get at your personal assets much easier.
At least that's how it was when I was part of a small corporation and I know it depends upon where you live, so you really need to talk to someone in government, but that should be free (after all, that's what we pay taxes for, right?). Incorporation is great for tax benefits and protecting yourself, but there are costs involved with it too, so you really need to check things out.
Don't know if this helped, but hope it gives you a little idea or a place to start from anyway.
