I am in a dilemma right now. I am receiving online income through 1099-MISC payments as a freelancer. This is my full time business. Now, do I really need to register my business? While filing taxes, I can deduct my business related expenses even if I don't have a registered business. So, why bother to register the business?
I have no issues with registering the business with the State I live in. However, it comes with some responsibilities such as filing business taxes in addition to personal taxes.
I know having an LLC gives your protection against lawsuits etc. and your personal assets are kept separate by having your own company. But are there any other benefits to forming a company and being the sole owner and the emplyee of that company?
Additionally, I think I will need to pay employment tax if I register the business.
Any thoughts? Did anyone go through this before? Thanks for your advise.
Thanks for sharing your thoughts and also posting useful resources.
I think I will go ahead and register my business. It protects my personal assets. Having a registered business name will be prefessional when you are dealing with other companies.
Hello: It sounds like you are operating your business as a sole proprietor. Check with your state to find out if they have any additional rules. The previous link can help you find the page you need. You can also find out what you have to do to register your business with your state under Starting a Business (Step 8).
Also, here are some IRS pages that may offer you the information you need: Do You Need an EIN?, Self Employmed Individuals Tax Center, Sole Proprietorships
You can also find these helpful resources and more on Business.gov's page on Self Employment.
Here are a couple of articles from our blogs that you may find interesting and help to answer some of your questions:
>> How to Become (And Stay) Self-Employed, According to the Law
>> When does a Business Start Paying Taxes? A 101 in Small Business Tax Requirements
Hope this information was helpful.
Hello: It sounds like you are operating your business as a sole proprietor. Check with your state to find out if they have any additional rules. The previous link can help you find the page you need. You can also find out what you have to do to register your business with your state under Starting a Business (Step 8). Also, here are some IRS pages that may offer you the information you need: Do You Need an EIN?, Self Employmed Individuals Tax Center, Sole Proprietorships You can also find these helpful resources and more on Business.gov's page on Self Employment. Here are a couple of articles from our blogs that you may find interesting and help to answer some of your questions: >> How to Become (And Stay) Self-Employed, According to the Law >> When does a Business Start Paying Taxes? A 101 in Small Business Tax Requirements Hope this information was helpful.
As for the benefits of registering your business, I found this discussion on Sole Proprietorship or Corporation that may want to check out and join in.
Also the article on Differences in Legal Structures -- Which Structure is Right for You? Business Law Advisor blog offers a comparison that may be helpful.
As for the benefits of registering your business, I found this discussion on Sole Proprietorship or Corporation that may want to check out and join in. Also the article on Differences in Legal Structures -- Which Structure is Right for You? Business Law Advisor blog offers a comparison that may be helpful.
Registering usually makes a lot of sense because it does do more in terms of protecting your personal assets. In this economy, being litigeous already, I think that makes a ton of sense.
Honestly though, as a freelancer, you could simply work under your own name and file individual returns without any headaches.
shortanswer | Performer | 12/28/2009 - 6:18 pm
phanio | Contributor | 12/28/2009 - 1:15 pm
ZanetaB | Former Moderator | 12/28/2009 - 9:08 am
ZanetaB | Former Moderator | 12/28/2009 - 9:23 am
MarkAse | Contributor | 12/28/2009 - 12:08 pm
Join The Discussion
You must be logged in to join the discussion. If you already have an SBA Community account, Log In to join the discussion.
New users, Register for a new account and join the conversation today!