Honestly, I don't think you should go for the incentive. It’s specifically designed for your line of work, so it's meant for people actually doing that job. As for the banks, I can't say for sure, but they track everything through your SSN anyway, so they'll see both scenarios. To be blunt, I doubt it would fly. But hey, why stress about it? Just give a bank a call and ask—you don't even have to give them your name. They're obligated to give you the info. And regarding the incentive, just file the application through the Apple, right?
Registering extra business activities doesn't actually change how much you owe the IRS. It all comes down to what you actually show as profit or income in your books at the end of the day. Seriously though, grab a coffee and sit down with your accountant before you make any moves
My bad, everyone. I seriously thought the mods might have "nuked" my account for a second there. Turns out, they didn't—it was just some glitchy tech issue or a weird computer error on my end. Sorry about that!
Alright, I’m officially calling it—I’m heading out. It looks like the mods pulled me from the accounting thread (if they didn't, I really hope someone reaches out to let me know why), and since I only pop into the other sections once in a blue moon, there isn't much point in staying around anymore. Sending my best to all the accountants out there.
Hey mellowfox56, you might want to merge this thread about starting a sole proprietorship with that huge discussion we have on setting up an LLC and update the title to include...and sole proprietorship since there’s a ton of questions over there like what the actual difference is between an LLC and a sole prop, how much it costs to set up an LLC versus just starting a small business, and stuff like that.
Come on, man, she’s actually awesome. Why are you acting all weirded out by her photo? You probably just misread the situation... things happen, but look, if you step out of line, she’ll let you know if you're breaking any rules. It's not like you're going to get kicked out instantly, so just
Of course you can. For example, if you’re already working at a company where you've got all your benefits covered—like your 401(k), health insurance, and all that—you could just start your own LLC. Then you’re the owner, and you basically just keep doing your thing while staying fully employed. It’s pretty straightforward. As for contracts between you and another company, there's no legal requirement to have one on hand, though I'd highly recommend it for other reasons, but let's not get bogged down in legal jargon right now. If that's what you meant, you'd just send them an invoice for whatever service you provided, and boom—done deals.
stormywolf16 said:I'm looking to launch my own business soon, so I have a few questions about the process. 1. Do I actually need to hire a lawyer to get things moving, or can I just handle the whole setup myself through Google? 2. What’s the real difference between being the owner versus acting as the director when you first set things up? 3. If I'm the only employee and I'm paying into Medicare, does that cover health insurance for my entire family too? 4. I'm planning on starting a cleaning and maintenance service—things like floor stripping and drying, plus some representation work for clients in that field. In your opinion, would it be smarter to go with a sole proprietorship or set up an LLC? Thanks in advance for any advice or answers!!!
1.Honestly, you can totally DIY this. There's no real reason to pay a lawyer, especially if you use a streamlined service like LegalZoom. 2.It depends on your situation. If you already have a day job elsewhere, you'd just be the owner. If you aren't working for anyone else, you'll likely sign on as both the owner and the CEO—though technically, you always have the option to appoint someone else to run the show. 3.Yes, absolutely. As long as they aren't covered by another plan, you can add your family members to your Medicare coverage. 4.If you want my two cents, I'd suggest starting as a sole proprietor. It's much easier to get registered and way cheaper upfront—you're looking at maybe $667 whereas an LLC will cost you closer to $8.25. Plus, if things don't pan out, closing a sole proprietorship is a lot less of a headache. At the end of the day, it's your call, but if you scroll back through this main thread, you'll find plenty of breakdowns on the pros and cons of both options.
When you're talking about beauty services, you definitely need the right credentials to pull it off. I mean, as an accountant, there's no way I could pull off a makeover 🙂 just kidding. But seriously, if you don't have the certifications yourself, you've got to hire someone who actually does.
Chloe Robinson44 said:Hey everyone, I could really use some advice! So, I’m planning to launch my own little small business selling souvenirs, and I’ve pretty much gathered all the necessary paperwork already. I actually just visited the Google office to get things sorted, and honestly, they were super helpful—really impressed with how smooth they made everything feel! 🤷 Now, here’s where I’m stuck: since the shop would mostly be running during the summer season, I’m torn between setting it up as a seasonal business or just going with a year-round setup. What are the actual pros and cons of each? Also, what happens if I decide I want to keep the doors open longer than the typical six-month summer stretch? And most importantly—if I’m not officially "open" during the off-months, am I still on the hook for Social Security and Medicare, or other taxes and fees? Any insight would be amazing!
Yeah, that's the catch—you just can't predict how sales will look once the tourists head home. If you set it up as a standard year-round business instead of seasonal, you're basically obligated to pay all those monthly fees regardless of whether you're making a dime. You could eventually talk to the local Chamber of Commerce about putting the business on hiatus, but you'll still be responsible for Social Security and Medicare. The only thing they might let you slide on is the Hock dues if you file a formal request.
It’s honestly such a relief when things actually move forward without all the usual bureaucratic headaches. That said, I’m assuming you’re still planning on staying in the same area where your business is registered? Since you're tied to that specific municipality for your local tax filings, you'll likely have to stick to that. The only thing that gives you any flexibility is that you can submit your Finin reports from pretty much anywhere in the US, but the IRS and local tax authorities always look at where your business is physically operating. So, yeah, just make sure you’ve double-checked all those details.
Your best bet is to just give the local City Hall economic development office a call—specifically the one where you registered your business. Honestly, I’m really hoping things have changed since I went through this myself. Back when I moved, the regulations forced me to officially shut down my old business and re-register everything from scratch at the new location. It’s one of those bureaucratic headaches that honestly makes zero sense if you think about it for more than a second. Luckily, it didn't cost me a fortune to get everything set up again back then. I don't want to give you the wrong advice, so just call them and get the facts straight from the source.
Honestly, Dante, you’ve got a point there. There’s really no sense in getting worked up about it. No matter how much experience we think we have under our belts, there’s always something new to pick up from what others are doing. It doesn't matter if someone's been on the job for two years or twenty—you never actually stop learning.🙂
Nicholas Gomez5 said:Did you tell the inspector conducting the audit at your company not to confuse you with trivialities? And did you get away with it? If so, props to you!
And let's be clear: signing a document and issuing a receipt are two different things.
Nah, I didn't say anything to the inspector because there wasn't even a reason to. The invoices were signed by the person who actually had the authority to do so. I feel like we've already made it clear who’s authorized to sign documents, so there's no need to get defensive about it. We're just here to talk about how things actually work on the ground and what the day-to-day reality looks like. It's totally possible for an inspector to trip up and try to penalize you for something that wouldn't even cross our minds.
Robert Chavez92 said:Do I need to prove everything upfront or...? Basically, is it mandatory to make the purchase first (collect all those paper receipts) and then withdraw that exact amount from the business checking account or am I allowed to just pull out a lump sum (basically moving it to the petty cash drawer) and then slowly gather receipts over time until the balance clears? If that's an option, does it mean I can just keep a certain amount of cash sitting in the office safe without having to explain why it’s sitting there instead of in the bank? And is there actually a legal cap on how much cash a small business can keep on hand?
I know I’m probably not using the right accounting terminology here—hope this makes sense. 🙂
You can definitely pull money from the business account and put it straight into the petty cash box. There isn't a hard federal limit on how much cash you can have on hand anymore, though just to be safe, I actually drafted a company policy stating our maximum cash limit is a specific amount. That said, you don't have to withdraw the whole chunk at once. Just take out what you need to cover cash expenses—like paying small invoices, maybe some net payroll if that's how you do things, travel reimbursements, local errands, and stuff like that.
Nicholas Gomez5 said:Family members can't actually "work" there if they aren't employees. They can HELP out, sure, but they can't take over a role. For example, they can help you stock shelves, but they aren't allowed to ring up a sale or issue a receipt.
Man, please don't confuse people with technicalities that don't even matter anymore. They totally can process a transaction because everything is digital now; you don't even need a physical signature since there's always a disclaimer saying "valid without signature." And look, if it really comes down to it and someone needs a handwritten receipt, the owner just signs it. Or, if we're talking about official stuff, someone can just list a family member as an authorized signer at their bank. I mean, what would stop the owner's son from working there? You see kids taking over shifts for their parents in retail stores all the time, doing the exact same job as anyone else. Same goes for a spouse, too.
If you're really struggling this much with it, honestly, the easiest thing to do is just give CNN a call. They'll get everything sorted out for you—just pay up like everyone else.