I'm employed, 40 hr a week 9-5, but also have a Production Company. I have a ton of deductions for my Porduction Company and take them on my tax return. Do I need to register my "business" with anyone? I currently only have it registered with ASCAP, but not with any local, state, or federal agency. What is my best course of action?
2006-12-21 08:53:36 · 4 answers · asked by The Skizzanator 2 in Business & Finance ➔ Taxes ➔ United States
The IRS doesn't care about registering your business, as long as you properly declare your income. Schedules C and SE are used for this purpose. Your state and or local government may have different rules. Many require a business license. A good local CPA should be able to help. If you need to ask this question, you should probably have a CPA help with your taxes, at least for the first year, anyway.
2006-12-21 11:06:55 · answer #1 · answered by STEVEN F 7 · 0⤊ 0⤋
If you have a business that would not be considered a hobby by the IRS, you probably need to be registered at the state level with the tax or revenue folks. Depends on whether what you sell is subject to sales tax or not and whether you have any employees. Get on your state's tax or revenue's website and they probably have the registering requirements laid out.
If you do not have any employees and are operating the business as a sole proprietorship you do not need to get a federal employer identification number. However once you get employees or change the business from a sole proprietorship you will need an EIN.
If you are using a fictitious business name say "Bright Sky Productions" you might have to register with your state's Secretary of State or consumer affairs folks.
Lastly you may need local city business licenses.
I'll close by again mentioning the hobby loss rules. See the following topic:
http://answers.yahoo.com/question/index;_ylt=AuOic9XmnvF6WBFu1itjrWDsy6IX?qid=20061220194342AAS1HlL&show=7#profile-info-AA11707133
(Form 1065 is for partnerships and is not applicable to a sole proprietorship)
2006-12-21 18:52:45 · answer #2 · answered by zudmelrose 4 · 1⤊ 0⤋
If you are running a business you need a business license with the city in which you are operating. It's only about $150 per year.
You'll also need to file a 1065 form.
Speak with a tax preparer for full info.
2006-12-21 17:02:09 · answer #3 · answered by Anonymous · 0⤊ 0⤋
The are no tax rules that you must register.
You "usually" should register the DBA with the city.
WZ
2006-12-21 16:59:31 · answer #4 · answered by Wayne Z 7 · 1⤊ 2⤋