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Small business

Discussion in 'General Discussions' started by ralphie250, May 6, 2018.

  1. ralphie250

    ralphie250 Fully Erect Donor

    I have done enough side work over the years that it has started to make me wonder about starting a small business. With that being said it's not about quitting my job and starting a business it is about having a bank account with said business name on it and things to that nature. With that being said some people have written checks to a business that I have made up and I have to get them to go back and make it out to me. Sometimes it is a pain in the ass but it is what it is. I know nothing about any of this kind of stuff yes I am a very intelligent person but I know that you can do it as DBA. So my question is how do I go about it what are the pros and cons and is it worth it? And how will it affect my taxes at the end of the year? I know if the business only shows so much profit or so much money then it doesn't matter but I really don't know the logistics of it. And I know there are people on here and they're way more intelligent than me. LOL I've had a lot of people tell me that I should have been an accountant because I am very good with money in any time anybody has ever ask me for my opinion on business ethics it's always very good and it always works when they use it. But like I said it's not about quitting my job and starting a business it is just about having the things that I need so when people write a check made out to my business and things to that nature.

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  2. genuinemommy

    genuinemommy Moderator Staff Member

    I don't have advice. But I'm excited for you.
     
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  3. fflowley

    fflowley Don't just do something, stand there! Donor

    Yeah, what she said.
    Is there a local Chamber of Commerce or Small Business Advisory council that can help you?
     
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  4. redux

    redux Very Tilted Donor

    Location:
    Foggy Bottom
    That would be my advice as well.

    Check out SCORE (Service Corp of Retired Executives)
    SCORE | Free Small Business Advice and search for nearest office.
     
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  5. cynthetiq

    cynthetiq Administrator Staff Member Donor

    Location:
    New York City
    pretty simple

    1. Create an entity either S Corp or LLC. LLC is cheaper and easier to do.
    2. Get an EIN for the entity.
    3. Have people pay you to the business.
    4. Take deductions and write downs/offs as businesses will and should do according to tax laws (loopholes)
    5. Profit.
     
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  6. ralphie250

    ralphie250 Fully Erect Donor

    I will check on the Chamber of Commerce thing. I do not know what an EIN is I will have to Google that.

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  7. ralphie250

    ralphie250 Fully Erect Donor

    LLC is limited liability company correct? Basically that means if something happens and they sue me they only get what the company is worth and they cannot go after my house or anything to that nature??

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  8. cynthetiq

    cynthetiq Administrator Staff Member Donor

    Location:
    New York City
    That's correct. You don't want to be personally liable for anything your company does.

    Once you create your company and register it with the state, you file for the EIN tax number via the IRS.
    Apply for an Employer Identification Number EIN Online | Internal Revenue Service
     
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  9. ralphie250

    ralphie250 Fully Erect Donor

    I will check into that today thank you very much

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  10. ralphie250

    ralphie250 Fully Erect Donor

    What about a bank account? Do I just go to the bank and tell them I need a business bank account?

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  11. cynthetiq

    cynthetiq Administrator Staff Member Donor

    Location:
    New York City
    Yes but you cannot do that until you have an EIN and some papers that show you have a company.
     
  12. ralphie250

    ralphie250 Fully Erect Donor

    what is the difference in DBA and LLC
     
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  13. omega

    omega Very Tilted

    Personal banker here. I open accounts like yours all the time. Though in a different state and a different institution. From my end for a business account, we need articles of organization and a certificate of good standing. You file the art of org with the secretary of state, and they also issue the cert of good standing. If someone gives me the name of the business then I can look it up and print it. As cynthetiq pointed out, you get the ein from the IRS. The ein is social security number for the business. A dba is a trade name. Doing Business As. Often used for sole proprietorships. Ralphie250 DBA ralphie's dirty trannies. That way whether the check is made out to you or the business you can cash it. An LLC can still be a dba though. You could have a top corporation that rents properties and also details cars. So the different portions can operate as DBAs.
     
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  14. rogue49

    rogue49 Tech Kung Fu Artist Staff Member Donor

    Location:
    Baltimore/DC
    Some banks will allow you to open a business account even without an EIN
    You just need your local county/cities business license documentation and fictitious name/business name and an opening amount.

    Each area is different, you simply need to go online or physically down to that government's location and register.
    Rules are all different.

    Also, each bank has different rules and accounts for businesses.
    It doesn't have to be a business account, but you'll need to to that IF you decide to cash checks and deposits with the business name.

    For example, I don't have a business account with my current service business....it's just a legal entity for negotiating inventions and doing services.
    but I am registered in Maryland under a business name.

    In Virginia, it was done by county...and the registration was done separate from the name.

    Also you may want to account for laws/regulations for your business.
    Inventory is done different than just plain services.
    Doing it out of a office or business location is different than just work out of your home.
    Mechanical work may have certain environmental regulations and certification.

    You can usually ask or research this in your local government.
    You don't have to do an LLC, which may protect you from lawsuits, bankruptsy, or any other fines, which may occur...so it protect you as a person vs your business.
    You can also get business insurance...which is likely a definite if you're doing mechanical work. (protect yourself)
    You never know when you're going to get a "dick customer" that makes a mountain out of a mole hill (some see you as a target...hell, I just got a summons for a tiny fender bender already handled by insurance)

    I do simply computer service and intellectual property. I have no inventory, chemicals or such
    Tools, equipment, chemical disposal, all just needs to be typically registered...so there's a bit more to it.

    But it's easy to get it all done.
    And don't ding yourself on intelligence...it's just experience. Once you do it...it won't be so much. I started my first biz at 25....didn't know crap. You don't know, until you know...

    You may want to get not just business cards...but definitely register your name for a Website...then get a minor webpage setup. Most use this instead of business cards.
    You may want to figure out how to get your name out there. Ads, links, registries, groups and more....

    1. Get your license and biz name from your local govt.
    2. The EIN is for the Federal taxes...but you may also need to register for State and local taxes. (Federal allows for 5 years of Zero profit, then you have to start over...other govt entities you can go forever, as long as you claim zip)
    ** Try to pay your taxes quarterly, it's easier this way...and how most govt entities track it.
    3. Get the registrations for inventory if you have it, mechanical if you're doing that, etc and so on. (it's just a matter of going through the paces)
    4. Register your biz name for website (get it even if you don't have a page...or someone will take it while you're waiting)
    5. Start getting the word out. (anyway, shape or form...including internet)
    6. Come up with an accounting system, with a software program to keep records and finances (and a few cabinets for paperwork)
    7. Get a separate computer and printer/scanner/copier to do all the paperwork, records and print out stuff. Keeping a separate computer is good for keeping it from your personal...plus it can get messed up. (have backups!!)

    If you're doing this on the side from a job...then you don't have to worry about income.
    If you're doing this solely for a career...then MAKE SURE you have enough volume and overlapping contracts/customers. You want to keep up a consistent and stable income.
    Don't want an up and down roller coaster or any gaps.

    I have a good friend who's had a very small mechanics business for years. He's a genius with cars.
    But he does it in a little hole in the wall, doesn't want more. And everything is word of mouth. He just doesn't want a big biz.
    He does well.
    Just not better than what he wants to deal with...at that time.

    Go for it.
    The easy part is starting it up.
    The hard part is keeping it going.
    But it's an adventure.
     
    Last edited: May 7, 2018
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  15. Lindy

    Lindy Very Tilted Donor

    Location:
    Nebraska
    Good for you @ralphie250 ! One of the marks of an intelligent person is admitting that no matter haw smart, they cant know everything.

    The first thing I thought of is how this would effect your relationship with your employer. If you were working for me, I would not take kindly to you also being in competition with me, potentially taking my customers.:mad:

    Ask some banks what they require. Credit Unions might be more flexible as they aren't as closely regulated. Nebraska doesn't require a formal DBA. It's just a "fictitious business name" or "trade name." And you can't use any wording that implies professional licensure, if you don't hold that license. Like Doctor, Surveyor, Mortician, Pharmacist, etc. or any name already in use in your state.
    I use a trade name for my consulting business. It's on my checks, along with my real name, address, etc. The bank required my real name to be on the account and documents along with my trade name:

    Vixen ImpEx Consultants
    Sophia Lind******
    54321 Superior CT
    Lincoln, NE 68xxx

    Here's the link for a Georgia DBA, through your County Superior Court. Looks pretty simple.
    File a DBA in Georgia

    You should keep your self-employed finances separate from personal. Deposit business income and pay business expenses from that account.

    Use a different bank from your personal bank. There are reasons...

    You'll need a Georgia Sales Tax ID# so you can collect sales tax from your customers and remit to the state.

    As long as you have no employees, you don't need an EIN. You'll use your SSN. You can always get an EIN later if need be.

    Realize that if you do this you will put yourself on several radar screens. If you don't file state reports, etc. on time there will be penalties.
     
    Last edited: May 8, 2018
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  16. Freetofly

    Freetofly Diving deep into the abyss

    Best Wishes Ralphie250!!


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  17. Remixer

    Remixer Middle Eastern Doofus Donor

    Location:
    Frankfurt, Germany
    People got you covered pretty well - best of luck @ralphie250 !
     
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  18. Chris Noyb

    Chris Noyb Get in, buckle up, hang on, & don't criticize.

    Location:
    Large City, TX
    I have no idea :eek:, but include me on the Wish You the Best list ;).