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tim.gid
01-28-2014, 08:29 PM
Ok, I am going to go into detail here as to avoid confusion. Until recently I have always just worked for an employer. I have been going to consignment auctions lately and buying things like furniture etc. I either fix the items up or just resell the items on Craigslist for a small profit. My problem is I want to make this my permanent sole income and report these earnings on my tax return under say a 1099 or something. My question is do I need an LLC, or just a tax id number, or maybe I need nothing except to just report these earning and keep track of profits and expenses? I live in Missouri and an income of $20,000 a year is good enough to live on comfortably, so this is about all I will make. Also with a wife and kids I pay no taxes until I think $53,000 a year. So, basically I just want to report this income to get the child and earned income credits, and to avoid tax evasion or something. Thanks for the help.

eppie
03-08-2014, 03:13 AM
Hi Tim.gid :)

I think it's best to consult a professional regarding this issue. I came across this website - sba.gov (http://sba.gov), it's a US government website dedicated to help small business owners and they do have local district offices where you can go personally and consult with counsels. They also have an online community where you can post your business-related questions. You can find SBA local assistance here (http://www.sba.gov/tools/local-assistance) and visit their online community here (http://www.sba.gov/community).

I can relate to you as I too have a part-time online business and considering to do it on a full-time basis too. Here in our country the laws are not that strict when it comes to these things as the government will only go after you if your business is really big. I'm planning to consult a tax lawyer in the future should I finally decided to make my part-time business full time. :)

Good luck! ^_^

taxcpa
08-19-2014, 10:54 AM
If you earn income you have to file taxes. If you have not created an entity such as an LLC, you are a sole proprietor. As such, you attach a "schedule C" to your normal federal tax return to report your income and expenses.

You will see that in addition to income tax you will have to pay self-employment tax. This is a tax of 15.3% and represent social security and Medicare that is paid by employees / employer (half is withheld from an employee's paycheck, the other half is paid by the employer).

If you report your income as a sole proprietor you do not need a separate tax ID number for income taxes.

Your state may require you collect sales taxes on your sales ... every state has different rules for sales tax and I am not familiar with your state.

KaleyTapia
01-28-2016, 03:53 AM
If you have the cash to start business on a large scale, then I would suggest an LLC (https://en.wikipedia.org/wiki/Limited_liability_company). Otherwise sole proprietorship should work fine. An LLC will give you the advantage of limited liability, but the taxation will be heavy.

amayajace
10-18-2019, 03:52 AM
Limited Personal Liability. If your business is a sole proprietorship or a partnership, you and your business are legally the same “person.” ...
Less Paperwork. ...
Tax Advantages of an LLC. ...
Ownership Flexibility. ...
Management Flexibility. ...

amayajace
10-18-2019, 03:53 AM
Limited Personal Liability. If your business is a sole proprietorship or a partnership, you and your business are legally the same “person.” ...
Less Paperwork. ...
Tax Advantages of an LLC. ...
Ownership Flexibility. ...
Management Flexibility. ...

ishusri
10-21-2020, 04:13 AM
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ishusri
10-21-2020, 04:15 AM
Hearing Aid Centre in Chennai | Hearing Clinic | Denoc Hearing
Denoc hearing aid centre in Chennai- Hearing clinic suggests hearing aid products after consultation at kodambakkam, alwarpet ,mylapore, TNagar.
CONTACT INFO
G7 & G14, Eldorado Building,
No.112, Uthamar Gandhi Salai,
(Nungambakkam High Road),
Nungambakkam, Chennai -600 034,
Tamil Nadu, India.
Phone: + 91 – 44 – 2823 7272
Mobile: +91-99400 27141 / +91-99400 37141
Web: www.denochearing.com

nadiasonii
05-29-2021, 01:48 AM
Any person starting a business, or currently running a business as a sole proprietor, should consider forming an LLC. This is especially true if you're concerned with limiting your personal legal liability as much as possible. LLCs can be used to own and run almost any type of business.