I work for an apartment community in Texas and our current housekeeprs for our vacant units are doing terrible. My boyfriend and I are thinking about starting to clean them and possibly later expanding it into a larger business. The company I work for requires that our vendors be insured and bonded. We figure we have to speak to an insurance agent for this however do we need to have a Tax-ID #? Do we need to make it a corporation or partnership? How do we go about doing that? We need help figuring out where to start. Thank you in advance.
2007-08-14 03:13:49 · 3 answers · asked by Anonymous in Business & Finance ➔ Small Business
You should be able to go to your local Better Business Bureau and they can answer questions like that for you and probably direct you where to go for startup grants etc..
2007-08-14 03:23:13 · answer #1 · answered by feemebe04 3 · 0⤊ 0⤋
Yes, you will need a tax ID. but you do not have to have a corporation or partnership. To start out a sole proprietor will be just fine, in that event your tax id can just be your social security #. Especially if you dont know if this will grow into something bigger or not yet. Dont spend money where you dont have to. If this does take off and becomes something bigger than a one time thing, you need to probably form an LLC partnership, right away. You can form the LLC yourself depending on what state. Ask a friend that is an accountant about that. LLC's were made for people like you that dont have thousands of dollars to spend on attorneys to put into protecting their very small business in the "event of". So they are cheap. I did mine for like $110.00. If the company does grow to be huge, you will need to look into the tax benefits of a C-corp or an S-corp. Pick which is better for your business. One more word of advise, do not go into business with a "boyfriend or girlfriend" unless there is a serious committment and I mean marriage! Even then it is hard!
2007-08-14 03:31:57 · answer #2 · answered by D B 1 · 0⤊ 0⤋
You'd only need a tax id other than your social security numbers if you have employees. And it doesn't have to be a corporation. If the two of you start the business together, it's a partnership, not a sole proprietorship.
2007-08-14 03:32:15 · answer #3 · answered by Judy 7 · 0⤊ 0⤋