I'm starting my massage practice this fall in Oregon....need tax advice?

Question

I know how to keep the records and deduct my supplies and rent, etc and then only claim the rest, BUT do I have to get a tax ID number or an LLC license to do this or can I just do it without those?

Answer 1

You'd be wise to pay a CPA for an hour or two of his/her time to find out what you need to do, and what kind of records you should keep, and any hints they have on minimizing your taxes. They might show you deductions you haven't thought of. Their advice might end up saving you the amount of their fee and more.

If you don't have employees, you won't need a federal tax ID. If your services (or any product sales that you do) are subject to sales tax, you'll need to register with the state to collect and remit it.

An LLC is one way to set up a business - you can set up a business without forming an LLC.

Good luck with your business.

Answer 2

If you have employees you will need an EIN. It's a good idea even if you don't have employees so you won't be handing out your SSN to suppliers, etc.

The LLC is optional but it may be a good idea to shield yourself from personal liability. There's no tax advantage to it but there may be good legal reasons to do it. Consult with an attorney on that issue.

A business license is almost certainly required but that is a state or local requirement.

I'd suggest that in invest in a few hours consultation with a CPA to get your books in line and set up your payroll system so you'll be ready to hit the ground running when you open the doors. If you foul up on payroll you could find yourself out of business barely before you get started.