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I think I might have a small business now

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    I think I might have a small business now

    A local steel fabricator asked me to do a couple stair drawings for him to get approval from his clients a couple years ago. It started out as 1. Then last year it turned in to 4. He emailed me this weekend and says he has 40 this year.

    That's about $10,000 for me. Any advice on how to handle taxes?
    -Admin

    #2
    Originally posted by Name View Post
    A local steel fabricator asked me to do a couple stair drawings for him to get approval from his clients a couple years ago. It started out as 1. Then last year it turned in to 4. He emailed me this weekend and says he has 40 this year.

    That's about $10,000 for me. Any advice on how to handle taxes?
    Depends on how he pays you. LOL If he is also a small business and pays you in cash as each one is done, then........


    but if there is a papertrail, get professional advice.......
    Go Space Force!!!

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      #3
      Last year he mentioned that if we go over $600 he will 1099 me but we worked around it. I'll 100% get one this year.
      -Admin

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        #4
        Don't do cash deals. That shit will get you in trouble quickly.
        I don't know how sales tax is charged in your state. My state charges sales tax on everything. Some states charge tax for goods, but not services. Your states website should tell you that.

        If this is classified as a service and your state taxes services, then you need to charge your county tax rate and put that money in a separate account. If you don't already have a business, go to your county building and file a DBA (doing business as).
        You can just have a DBA in your name. You should be able to get on your states website to find out when your sales tax filing deadlines are. Just print off the form and send the check in by that date.

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          #5
          Originally posted by Harvey_Wideshaft View Post
          Don't do cash deals. That shit will get you in trouble quickly.
          I don't know how sales tax is charged in your state. My state charges sales tax on everything. Some states charge tax for goods, but not services. Your states website should tell you that.

          If this is classified as a service and your state taxes services, then you need to charge your county tax rate and put that money in a separate account. If you don't already have a business, go to your county building and file a DBA (doing business as).
          You can just have a DBA in your name. You should be able to get on your states website to find out when your sales tax filing deadlines are. Just print off the form and send the check in by that date.

          Awesome, I'll look in to that.
          -Admin

          Comment


            #6
            I say go the LLC route, just to offer yourself some protection. It's usually just one sheet of paper filed with the state.

            https://www.legalzoom.com/knowledge/...bility-company
            "L E X - T A L I O N I S"

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              #7
              Ask him to pay you in bitcoin. Or coke.
              This sig didn't cost me any money.

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                #8
                Originally posted by duke nukem View Post
                Ask him to pay you in bitcoin. Or coke.
                Or prostitutes. Support the local barter/ trade economy
                Go Space Force!!!

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                  #9
                  LLC is absolutely not necessary and far more expensive. That route would require articles of organization and other filings with the state. If you plan on actually turning this into a full time business, then look at LLC, but until then, save yourself the money and time and go DBA. DBA will cost less than $50.

                  Source: I have both an LLC business and a DBA.

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