Licensing and taxes?

top189h

top189h

New member
I have been thinking about starting a legitimate business part time until I can justify going full time. I have a four car garage that is already comercially zoned at my house. It happens to be right on a busy street and I have all the necessary equipment and such, and checked with the local osha and epa reps and since it has a concrete floor with no direct drainage I am okay to run out of there. I was full time at a body shop up until a year ago when I was moved up to management. After I stopped detailing for the shop, a lot of employees had me doing their personal vehicles on the side, and now around my neighborhood I have become basically the detail guy. Any way, my question is how many of the pros here set up and registered a business themselves, and if you did, where do you get the paperwork? If you hired an attorney to do it, was it worth the cost? Lastly in my research, I keep seeing all of these taxes and fees for employees, and since I will be my only employee (intend to go llc) do they still apply or will basic income taxes and self employment tax be it?
 
A few of the many things you'll need to do.



In my case it was:



City Business License.



Register with the appropriate Sales Tax Agency. Here in NM it's called 'Tax and Revenue' and referred to as Gross Receipts Tax. (Ask for something like quarterly or twice yearly filing. As opposed to having to file every month.



Couldn't get a business checking account without the two above.



Here in Santa Fe, its required to have an 'Occupancy Inspection., i.e. Fire Extinguisher, etc. Actually the business license is issued after the inspection. These offices are usually located in the same building.



For LLC LLCs (Limited Liability Companies) - Nolo.com It's easy. You can do it yourself.



Business checking acct.



Insurance and a bookkeeper/accountant are a must. So is Quickbooks - just for invoicing - IMHO
 
All I needed to start here in Texas was a DBA (doing business as) for $6. That's all my bank required to set up a business account as well. Whether or not you have to charge sales tax depends on your state. Some require all business collect it, some don't require it for labor. You might not have to carry insurance but it is a good idea, too risky without it.



Best to google "business requirements" plus your state, should pull up an official website.
 
Scottwax said:
All I needed to start here in Texas was a DBA (doing business as) for $6. ...
Click to expand...



No wonder they call Santa Fe "The City Different" I just moved my shop, and what the Water company put me thru ... :angry
 
legalzoom for the filings

contact your local insurance companies for quotes

advertise a little to get things rolling, but let word of mouth take you places as well
 
I know, i just couldn't help myself :)



I collect all the receipts/documentation, separate and total them, and then forward them to my CPA. He tells me what is acceptable and what is not.
 
Hiring a CPA is your best bet unless you have experience with doing business taxes. There's a ton of stuff that they know that helps ALOT that the normal person usually would not have a clue about.



In CT, I had to get register a DBA in my town and get a state issued tax ID #. Even though detailing is not a taxable service here, I still need to report my state taxes every 3 months even though they are always $0.



You may want to check with someone like your local chamber of commerce to see what's needed in your city/state. They will usually help you out with advice free of charge.
 
Register with your State's Dept of Revenue and get a Sales Tax ID. In my state, they send you a booklet to remit your sales tax fees.



Rick Grantham
 
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