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What type of business would I register as?

Discussion in 'Business & Tax Advice' started by thedon23, Dec 12, 2010.

  1. thedon23

    thedon23 Elite Member

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    I live in California for the record.

    I saw a tax expert a while back, as I was interested in registering a business. My business will consist of just me.

    What type of business would I register as? How long would it take in the state of California?
     
  2. tb0n3

    tb0n3 Newbie

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    To answer this question I would require some additional information about your business.

    Generally speaking, if you do not have any business partners, the most simple form is a individual sole proprietorship. You would simply registry your ficticious name statement with the county and would use your social as your tax id. To get your bank account in the business name, you will need a copy of the filing. Fictitious Business Name Statement must be filed with the county where the principal place of business is located.

    If you feel like your business could expose you to lawsuits or have business partners, you may want to created a limited liability company. Costs vary and depend on the company you use. Normally about five hundred. These business forms are more complex and will require you to do tax returns not only for yourself, but your business as well.
     
  3. samspam

    samspam Junior Member

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    I'd say sole proprietorship. For LLC, there is an 800 dollar franchise fee every year in Cali. Corps and S-Corps cost more both to start and in terms of accounting etc.

    So unless you're going big business, or in a risk for lawsuits, go sole proprietorship.
     
  4. nerrvana

    nerrvana Junior Member

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    It really depends how far and how serious you are going to take it.

    I have a sole proprietorship aka DBA "Doing business as". you can buy wholesale just fine with it.

    Get a business checking account after registering for a biz.

    I went to a county clerk, payed my $40 and away I went.
     
  5. CenTex Hosting

    CenTex Hosting Jr. VIP Jr. VIP

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    I would just start your business out as a DBA. Then if it starts to pick up then I would move it to an S corp. Now if your looking to build credit under your business name then File an S corp. To have the paper work done up for you will cost like 350 and then whatever your state filling fee is.
     
  6. thedon23

    thedon23 Elite Member

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    Thanks guys. Looks like I'll be heading towards the direction of a Sole Proprietorship.

    Another question; how do tax write offs work (within a sole proprietorship)?
     
  7. liquidx

    liquidx Power Member

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    i live in california as well and besides registering a DBA i was told I needed to register with a business license with the county? is this necessary since everybody is saying just do a DBA
     
  8. samspam

    samspam Junior Member

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    I'd let the accountant worry about tax write offs... Just make sure you save your receipts. But you can write off TV, computer, lunches, gas, etc, as long as you can "prove" it's for the business...
     
  9. .david.

    .david. Junior Member

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    Yep, you have to register in your county.

    Code:
    http://www.sos.ca.gov/business/be/starting-a-business.htm
     
  10. teeniegenie

    teeniegenie Supreme Member

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    I think SamSpam is right on. Don't spend any money setting up an entity, especially in Cali where the annual fees are so extreme, without first having a venture/business that is making some good money ($40,000 - $50,000 per year). Until you start making enough money you won't be saving on any taxes and will actually end up spending more in time and money working on forms, tax returns and the Franchise Tax Board notices/audits to make you want to puke. Keep it simple until you have some cashflow then go see a good CPA and he'll take care of you.

     
  11. documentarytt

    documentarytt Newbie

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    Merely the fact that you live in California (the United States) does not limit you to only be able to set up your company in this jurisdiction.

    Especially with an on-line business, I'd look for maximum privacy. Same applies to a business bank account.
     
  12. Bostoncab

    Bostoncab Elite Member

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    There is another thread like this running now and someone posted what I found to be a valuable link in it. Read the info just on the first page and it will peek your interests.
    Code:
    hxxp://www.offshoreformations247.com/jurisdiction/delaware
     
  13. JordanUK

    JordanUK Newbie

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    kkkkkkkkk
     
  14. Nookie Monster

    Nookie Monster Senior Member

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    In Alabama it costs less than 100 bucks and you can get the one page forms online from the Sec. of State website. Really easy to do. I have registered two LLC's this way.