I am hoping I can get some assistance with questions regarding my small
business. I am a Michigan home-based small business owner of an adult novelty
company. This company was established almost 2 years ago. At this time, I do
NOT have a tax id number, and run my business as sole proprietor. I have been
reading up on legal issues and structure and feel that it is time to switch
my company to LLC. I am so so confused on should it be a LLC or Corporation.
My business is for profit, and I have lots of dreams, including obtaining a
storefront. It is definitely time to keep my business and personal income
seperate. I wondered if I register a LLC, am I able to keep my current
business and host it under the umbrella of LLC, along with future business'
that are related.
Please assist me with clearing up the confusing so I may move forward.
Thank you so much,
Brittany Entrepreneur
BizResearcher | Window Shopper |
3/26/2013 - 11:39 am
When you say you don't have a tax ID number, are you referring to an EIN,
obtained from the IRS, or to a sales tax permit? You should have both if your
state collects sales tax. When you establish a business bank account (which
you should have done when you started the business - you should have been
keeping accurate records of income and expenses apart from your personal
income), your bank will most likely require an EIN as the identifying number
on the account.
If you are required to collect sales tax and you haven't been, you could be
audited and have to pay for the last two years. Additionally, if your
community requires a business license and you don't have one, you will need
to obtain one.
KMurray mentioned several resources that can evaluate your business plan and
recommend how best to proceed to be certain you are in compliance with all
local, state and federal requirements.
BizResearcher | Window Shopper | 3/26/2013 - 11:39 am
obtained from the IRS, or to a sales tax permit? You should have both if your
state collects sales tax. When you establish a business bank account (which
you should have done when you started the business - you should have been
keeping accurate records of income and expenses apart from your personal
income), your bank will most likely require an EIN as the identifying number
on the account.
If you are required to collect sales tax and you haven't been, you could be
audited and have to pay for the last two years. Additionally, if your
community requires a business license and you don't have one, you will need
to obtain one.
KMurray mentioned several resources that can evaluate your business plan and
recommend how best to proceed to be certain you are in compliance with all
local, state and federal requirements.
kmurray | Community Moderator | 3/25/2013 - 3:14 pm
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