I am a young basketball official in Los Angeles. I had been doing games for
other assignors until a youth league asked me to assign referees for them. I
have been accepting a check from the league on a weekly basis of about
$4,400. I have received 3 weeks of checks from the league and I am looking to
turn this assigning into a small business and look for other leagues to
assign. I was wondering if anyone had reccomendations of my next step to turn
this into a business.
LLCs are generally a little bit more popular, just because they are easier to
maintain. Though S-Corporations are taxed like an LLC, they are still
technically a corporation and must face all the same formalities that a
regular C-Corporation does (i.e. regular meetings, stock, a board of
directors, etc.)
JGabriel | Community Moderator |
12/12/2012 - 12:16 pm
BizReseacher is right. You may want to try getting in touch with a local Small Business Development Center or SCORE, two of SBA's resource partners. They're located across the country and provide free business counseling and answers. Visit our local assistance guide to find your local SBA resource partners by entering your zip code. One approach that may be useful is talking to a mentor who could offer you specific guidance. Good luck!
BizResearcher | Window Shopper |
12/12/2012 - 11:17 am
You definitely need to register a business name and entity type and set up a
business bank account and an accounting system so you don't run into problems
at tax time. You will also need to secure a W-9 from those you pay and you
will probably need to provide a W-9 to the leagues that pay you.
If you establish a one person LLC, you can choose to be taxed like either an
S-corp or a sole proprietor. An LLC is easier to establish in most states and
the costs are lower. You may want to visit with an accountant to find out
which entity type he/she recommends and also ask them to set up a proper
accounting system.
CorporateK8e | Window Shopper | 12/14/2012 - 2:55 pm
maintain. Though S-Corporations are taxed like an LLC, they are still
technically a corporation and must face all the same formalities that a
regular C-Corporation does (i.e. regular meetings, stock, a board of
directors, etc.)
JGabriel | Community Moderator | 12/12/2012 - 12:16 pm
BizResearcher | Window Shopper | 12/12/2012 - 11:17 am
business bank account and an accounting system so you don't run into problems
at tax time. You will also need to secure a W-9 from those you pay and you
will probably need to provide a W-9 to the leagues that pay you.
If you establish a one person LLC, you can choose to be taxed like either an
S-corp or a sole proprietor. An LLC is easier to establish in most states and
the costs are lower. You may want to visit with an accountant to find out
which entity type he/she recommends and also ask them to set up a proper
accounting system.
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