I write with Associated Content, and I am looking to start a *very* small web design company. How much money am I allowed to make before I have to actually start a business, verifying with my state, claiming on taxes, etc? I don't want to make too much and be pushed into that.
2007-06-24 11:09:47 · 5 answers · asked by petlover4lif 2 in Business & Finance ➔ Small Business
If you make $400 or more for the year, you are responsible for federal self-employment taxes on your income.
2007-06-24 11:18:48 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
$1
actually 1 cent
the 400 dollar limit is for combined earned income so be careful with that one.
remember, however, you can claim all expenses for the business to offset the income. what you do is fill out a schedule c for self-employment income when you file. go to http://www.irs.gov and you will see Small Business links that will help you immensely.
usually you dont have to register with the state unless you have employees or are required to charge sales tax. normally an occupational license is issued by the city and/or county in which you live. If you name it something that does not include your full name, you then have to register with your state division of corporations for a fictitious name. certain states have requirements as well in certain industries, but i dont think web design is in any, so you probably dont need to be licensed by the state. check with your local chamber of commerce to ask for help.
2007-06-24 18:18:19 · answer #2 · answered by Michelle H 4 · 0⤊ 0⤋
You have to report all of your income.Here is a good way to learn & simultaneoulsy earn some money.
2007-06-26 14:09:58 · answer #3 · answered by Anonymous · 0⤊ 0⤋
All of your earnings are to be reported.
2007-06-24 18:17:23 · answer #4 · answered by professorc 7 · 0⤊ 0⤋
All income is has to be reported.
2007-06-24 18:14:54 · answer #5 · answered by Anonymous · 0⤊ 0⤋