Now I Understand Why Nobody Wants To Be Legal..
Business By TheItalianBaker Updated 17 Jul 2014 , 1:53pm by leah_s
A".because is sooooo expensive!!
I just got back from a meeting with my tax person, she asked me $1.100 for tax id, federal tax id and to open a limited liability company! Omg!! I didn't believe it was so expensive..
I'm not sure you have to pay for a tax ID. I filed under my social security number. You also don't have to become an LLC. I did neither, although I am working out of my kitchen. I didn't file for an LLC because it is a bit costly, but not as much as you were charged. My startup costs were $50 for kitchen inspection, $250 for Food Safety course, and $300 (annually) for a $1,000,000 insurance policy. Equipment, of course, expensive as well but had been accumulated over time.
ADon't I need a Llc? So how can I have a business license if I don't have a company?
".because is sooooo expensive!!
I just got back from a meeting with my tax person, she asked me $1.100 for tax id, federal tax id and to open a limited liability company!
Omg!! I didn't believe it was so expensive..
Get a second quote. Federal tax ID's are free, if they are telling you anything different, you are being misled. You can file it yourself online at www.irs.gov. As for your state tax, it should be a minimal cost as well, approximately $30-50 varying from state-to-state as well as LLC formation charges. You can file all of these online yourself with a little help from online videos - try googling your state name, how to file article of organization video.
Different states have different laws, noramom's laws might not be the same as yours so check with someone from your secretary of state's office before making your decision to not file an LLC.
AThank you! I'll call my secretary of state's office and ask! If I can go with business license, tax id and license, I'll start in this way!
I agree with Norasmom. Much of what you are paying for is the time/expertise of the tax person you are working with. You don't have to be an LLC, but doing so protects your personal assets (house, personal bank accounts, etc.) in the event you get sued, which is probably why she suggested you do that. If you remain a sole proprietor, you can file through your personal taxes (on a Schedule C) and don't require a Tax ID number (you use your SSN like Norasmom indicated), but you and your business are viewed as one in the same, and anyone who sues you can come for your personal assets as well. I have studied business but I am not a lawyer or accountant --- so don't take my advice as legal counsel --- but I think you could probably incorporate yourself as an LLC pretty easily on a site like LegalZoom.com, especially if it's just you and you are incorporating mainly for asset protection purposes.
Again, not trying to sound like an expert, as I am just starting to build up my business as well. And I'm in Ohio -- so not sure if there are different rules for sole propietorships where you are. My advice would be to go online for your state's Secretary of State office. I found lots of info about the legal aspects to starting a small business there.
A
Original message sent by DoubleO
Get a second quote. Federal tax ID's are free, if they are telling you anything different, you are being misled. You can file it yourself online at [URL=http://www.irs.gov]www.irs.gov[/URL]. As for your state tax, it should be a minimal cost as well, approximately $30-50 varying from state-to-state as well as LLC formation charges. You can file all of these online yourself with a little help from online videos - try googling your state name, how to file article of organization video.
Different states have different laws, noramom's laws might not be the same as yours so check with someone from your secretary of state's office before making your decision to not file an LLC.
She asked me $150 only for tax id.. I understand she charges for her time (we all do it right?!) but $150?!?! She definitely doesn't undercharge!!!
with the assumption you are baking from home:
my county has a $5,000 (maybe it's $3k but it think it's $5k anyhow) yearly threshold to reach before you need a business license -- so check on that -- most counties have a threshold -- when you get your business license then you are a company liable for local tax --
here i can pay retail sales & use taxes and buy insurance without a business license -- i'd have to file my cake income on federal tax forms (if i had any ;) and pay state tax but not pay local tax until i hit the threshold --
it's different everywhere -- but yes you can do all the setting up by yourself -- all your local agency people will assist you -- which i suspect your state folks will advise you -- don't be surprised if it's confusing --
and congrats -- i know you been working toward this for some time
best to you
Quote:
She asked me $150 only for tax id.. I understand she charges for her time (we all do it right?!) but $150?!?!
She definitely doesn't undercharge!!!
it takes a few minutes online. you can operate as a "sole proprietor" LLC also a matter of filing a simple form, however you may be required by the state to open an acct with the franchise tax board, which does cost$$.
An LLC does what it says, it limits your personal liability, but insurance can do that too.
Run away. Run away. Run away....
A
Original message sent by ellavanilla
it takes a few minutes online. you can operate as a "sole proprietor" LLC also a matter of filing a simple form, however you may be required by the state to open an acct with the franchise tax board, which does cost$$.
An LLC does what it says, it limits your personal liability, but insurance can do that too.
Run away. Run away. Run away....
My husband would feel better if I had a llc, he is worried about the home (like I usually get people sick, thanks hubby!). I checked several website, I can file the application by myself and pay only the fee! So the lady charges $150 a hour! I want to change job..
yeah $150 an hour and the meter starts when she leaves her office
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I'm not sure you have to pay for a tax ID. I filed under my social security number. You also don't have to become an LLC. I did neither, although I am working out of my kitchen. I didn't file for an LLC because it is a bit costly, but not as much as you were charged. My startup costs were $50 for kitchen inspection, $250 for Food Safety course, and $300 (annually) for a $1,000,000 insurance policy. Equipment, of course, expensive as well but had been accumulated over time.
This :nodding: My husband incorporated his business rather than going the LLC route because of the cost. I remember the LLC being more expensive than the incorporation, but nothing like what the OP was quoted.
However, when my husband closed his business he had to pay through the nose to dissolve the incorporation. I don't know if he would have had to pay that much had he been a LLC.
Everyone's right. File for the EIC (federal) yourself. You get it immediately at your screen. Your state will also have all their biz filings online. I even did my incorporation myself (S corp because its what I know) using the boilerplate forms on the Sec of State's website. DIY!!
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