What do I need to do besides get a city business license in order to start my own business? Also, how do I file with the IRS for employees I will be hiring- and do I have to do this? Is this something I would need a lawyer or business consultant over, or can just anyone get a business license and run their business without problem?
Especially if you plan on having employees there is lots you need to know. More than can be covered in a forum post. The IRS actually has a great resource for new businesses. It is a free online class where you can learn what you need to know about small business taxation and hiring employees. You can start there and then decide if you want to go it alone, or hire a bookkeeper and/or accountant. Here is the link: IRS Small Business Tax Workshop Then if you need a small business tax consultant, I happen to know someone who is pretty good.
Doesn't anyone use the search feature on DP anymore? These questions get asked and answered on a regular basis. Jim
I concur. I see a lot of the same one's in sections over and over. Not to mention some of the SAME questions in multiple threads on page 1.
Thanks, very helpful post. I suppose I'll have to go over this with an accountant, as I certainly don't have time to learn all of this information. Second question: what defines an employee? I know for the past year I've done freelance work, and I didn't have any tax information from my employers (obviously). So how do they get by with it?
Short answer...everyone is an employee unless they can prove they are not. Having multiple clients, advertising, and control over how and when you work are some of the factors that would make you not an employee. If you were freelancing, and you are not incorporated, you are supposed to get a 1099 from anyone who paid you more than $600 for the year. You are supposed to report all your income, even if you didn't get a 1099 or W-2. Lots of people don't, and will probably get away with it until they are audited.
I would think that it would be advisable, in most cases, to get a lawyer when setting up, and then a CPA. A CPA from start might be enough though, and worth considering, since biz lawyers are expensive. As a general rule of thumb, if you are incorporating, hiring, or other complications than a simple DBA, see a lawyer first. Some states make it very easy for you, but you never really know everything, and things change all the time. Pros know what's going on.