starting buisness ?

[layddually]

ok i have some questions. how many of you guys have filed dba's and fed tax id's? i am trying to get started in my own buisness and everyone i ask tells me yes i need to or no i dont. no one gives me a straight answer. not even the irs.

[GlassStarz]

If its just you I would go DBA easy to file and customers that want a tax id you give your ssn you get a 1099 at the end of the year drop it in your accountants lap along with list of expenses you acrued and go back to work

[layddually]

hmmm thats kinda what i thought. what if i did replacements also? same thing?

[harrellbenjamin]

If its just you I would go DBA easy to file and customers that want a tax id you give your ssn you get a 1099 at the end of the year drop it in your accountants lap along with list of expenses you acrued and go back to work

Exactly.....Makes it real simple

[Chips-B-Gone]

In your state if you are required to charge sales tax you must file as a dba (legally).

[ChipperFixer]

Harrellbenjaim, doesn't Links and people like that require an EIN to do business with them?

[GlassStarz]

Untrue on the required DBA its a tax certificate that sales tax states need reporting the tax and paying it either monthly or quarterly you may operate as an individual if you want but the DBA allows you to use a buisness name its easier to get a customer to bo buisness with Freds glass repair than just Fred

[layddually]

ok since repairs are labor do i need a sales tax id? i think here in texas a dba is different from the sales tax id.

[ProView WR]

Regulations vary state to state. I do not know the specifics in Texas but generally:

If your name was Fred and you didn't want to use the name Fred's Windshield Repair, but wanted to use a different name like USA Windshield Repair you would need a DBA in order to operate legally. The same goes for a corporation that would like to operate on an assumed name. If the company was TriState Auto Glass but wanted to operate a windshield repair business under a different name like USA Windshield Repair, they too would file for a DBA to use the assumed name.

Alot depends on the structure you choose to develop as your business: Sole Proprietor, LLC, CORP, Partnership, and so on...

Each will have different regulations and filing requirements. The easiest to setup would be a Sole Proprietor, where you simply would pick a name for your company and file for a DBA if it doesn't include your actual name and use your social security number as most forms of EIN or tax id requirements. You are also responsible for any business related debts and lawsuits.

If you are planning to grow larger and higher employees, or simply want more security in case anything happens, you would probably file for becoming an LLC or Corp. Each give you only limited liability in the case something would happen to the company, creditors and others couldn't come after your personal assets. These are more difficult to start, but often times the only way to go.

Again each state is different in their requirements so it would be wise to contact your local secretary of state or county clerk and do a search on google for your state's operation requirements.

[daytrader]

Exactly.....Makes it real simple

Untill you try to get low rates on liability insurance.

Most of the insurance will want you to have a lic company registered in the state you op in. Some state require this.

The IRS and your accountant are not the folks to get your answer from. I would call a small biz lawyer abd ask them how much to set everything up for you. You may be surrised how cheap it can be. All being done right and with no down time for you.

You do not go to a dentist when your leg hurts. So do not go to the IRS when what you need is a lawyer.

Look at the legal problems FED EX has right now due to 1099 contractors. Fed Ex own spoke person said that is the class action gose nation wide they will be done.