Starting a small business

Look, if you set up your business headquarters at an address that isn't where you actually live, there’s absolutely no reason why those phone bills—you know, the ones tied to the business address—shouldn't be counted as deductible expenses. It's pretty straightforward logic, really. You just need to make sure that the workspace is either listed as a fixed asset on your books or that you're actually renting it under a formal commercial lease agreement. Once that's settled, you're good to go; both your income tax deductions and those pesky utility bills linked to the business location are fully recognized by the IRS.

Thanks for getting back to me! Honestly, I think the issue might be that my official business address is one thing, but the actual office where that phone line is hooked up is at a different location... I'm just renting the space there under a lease agreement. I don't spend much time in that office, so I haven't bothered registering it as a branch office or a new headquarters yet (not that it matters much to me)... The Department of Commerce doesn't show me as being in that space at all, aside from what's in my lease, some marketing materials, and stuff like that.

I was wondering if anyone here has experience starting a small business? I’m looking into opening a sole proprietorship—specifically a service-based one—and I'm trying to figure out how much cash I actually need upfront. Like, is it just the paperwork fees, or am I going to need a significant cushion in a business bank account like you would for an LLC?

dustyangler80 said:I was wondering if anyone here has experience starting a small business? I’m looking into opening a sole proprietorship—specifically a service-based one—and I'm trying to figure out how much cash I actually need upfront. Like, is it just the paperwork fees, or am I going to need a significant cushion in a business bank account like you would for an LLC?

costs are roughly $333, check google.com for the paperwork details.

I was wondering if anyone here has recently gone through the headache of starting a small business? If you have, what’s the actual play-by-play? Most importantly, I'm trying to figure out what the bare minimum technical requirements are if I want to open up an appliance repair shop.
The internet makes it sound like you can just breeze through everything on the Small Business Administration website, but man, once you actually hit those specific technical requirement hurdles, it's a total circus. It feels like you're being bounced from one office to another with zero answers, and then you end up right back at the SBA only to be told you need to go visit some local county government building instead. It's such a loop!

So, if anyone has actually navigated the red tape of opening a sole proprietorship lately, could you please walk me through it?

Thanks so much!

I went through the process myself, though I was looking into hospitality rather than service work. For all the technical requirements and official registrations, you have to deal with the state administration office for your specific county. Honestly, it’s impossible to get a straight answer quickly. At least where I’m located. Your best bet is to look up the local "state administration office"—that's the actual name they use for each county—and head down there. Just tell them you're trying to register a small business for service work, and they'll point you to the right person. Every clerk and staffer there handles their own little niche area.
They’ll hand you a packet containing all the regulations you need to follow and the specific documentation required—both for the initial business registration (you might need certain professional certifications, for instance) and for meeting the minimum technical standards.
Once you’ve checked everything off the list, you call them in for an inspection.
Good luck!

I decided not to start a brand new thread for this question, as the title of this one feels like the most productive place to seek some guidance.
I’m looking into setting up a small business—specifically focusing on computer repair, network maintenance, and IT implementation services.
I’ve done a bit of digging online, but I haven’t been able to find a straight answer regarding two things: whether this qualifies as a specific type of sole proprietorship under US tax laws, and if I am legally allowed to run these operations out of my own home.
🤷

Does anyone happen to know how things work when you're just doing some side gigs—you know, like picking up occasional freelance tasks where you're getting paid directly by individuals? I'm trying to figure out the best way to handle the taxes on those little side hustles without actually having to set up an LLC or a full-blown business right now, since that just wouldn't really work for me at the moment. Also, I guess I was wondering if social security or self-employment taxes are mandatory in a setup like that?
I’d be super grateful if anyone could share some info—or maybe even run some rough numbers for me—regarding whether those tax contributions are required.

I will attempt to be concise and direct;
Since 2004, I have been selling my 3D models through an American website.
The funds land in my foreign currency checking account which I use for these transactions. I heard that due to some recent tax legislation,
money is supposed to go directly into a specialized foreign currency account,so I went ahead and
set one up. It was meant to transfer automatically from my checking to that account, but that hasn't happened, and
I am still receiving all my payments into my foreign currency account at JP Morgan Chase. I realize that
tax laws vary significantly from state to state here in the US, so right now, it looks as though a "well-meaning relative" is sending me money. My annual income is roughly $22,000.
My intention is to set up an LLC, essentially employing myself so I can properly pay my taxes and social security, and I am wondering what
specific steps I need to take. I know there are hundreds of different takes on this topic, but I wanted to
lay out my specific situation clearly so I don't have to sift through endless threads or
receive "band-aid" answers to this question. I appreciate anyone willing to lend some guidance.

granitegull922 said:I will attempt to be concise and direct;
Since 2004, I have been selling my 3D models through an American website.
The funds land in my foreign currency checking account which I use for these transactions. I heard that due to some recent tax legislation,
money is supposed to go directly into a specialized foreign currency account,so I went ahead and
set one up. It was meant to transfer automatically from my checking to that account, but that hasn't happened, and
I am still receiving all my payments into my foreign currency account at JP Morgan Chase. I realize that
tax laws vary significantly from state to state here in the US, so right now, it looks as though a "well-meaning relative" is sending me money. My annual income is roughly $22,000.
My intention is to set up an LLC, essentially employing myself so I can properly pay my taxes and social security, and I am wondering what
specific steps I need to take. I know there are hundreds of different takes on this topic, but I wanted to
lay out my specific situation clearly so I don't have to sift through endless threads or
receive "band-aid" answers to this question. I appreciate anyone willing to lend some guidance.

That’s just how our tax code works. It's nothing out of the ordinary—kind of like running a business in the States where the money hits your business account instead of a local checking account.

I’ve officially launched my own small business, focusing on retail office supplies.
Could someone please walk me through the essentials? I'm looking for guidance on what the biggest pitfalls are, which suppliers actually deliver on their promises, and any other vital considerations I might have overlooked.
Thanks in advance for any insight you can offer.🙂

Is there really no one else here?😕

Hmm, who exactly do you expect to give you an answer? Someone who actually knows the ropes—someone working in the industry—isn't going to just hand over their trade secrets or their list of reliable suppliers to a competitor... obviously. As for everyone else, well, the rest of us don't have a clue what you're talking about. You aren't going to find answers to questions like this on a forum.

Maybe try a quick Google search first? 😉

Look, some of my buddies run a business—not just a small side hustle, but a real setup. They handle everything from basic office supplies to seasonal stuff like holiday cards, planners, pens, calendars, you name it. They’ve teamed up with a local printing shop, so you can basically go through them to order all your branded promo gear and corporate gifts for the holidays...
But I recently found out they mostly just source their stock from The New York Times wholesale warehouse.
Just a heads-up: when you're playing the "small business owner" role delivering things like office supplies, everyone expects you to be their personal delivery driver. Don't even get me started—a friend of mine was venting to me about how driving across town just to drop off five ID forms and a single ream of paper is a total waste of gas and time...
Personally, I don't even bother buying those forms. I just grabbed them online, plugged them into Excel, added some formulas, and now everything calculates itself! And once I switch to e-filing next year, it'll be even easier. 🙏
I'm not saying you shouldn't get into this. But first, find yourself a solid supplier. And honestly? Try to land a contract with a major corporation; it'll save you a massive headache. The only catch is that the big players usually stick to government contracts... so, yeah...

For any buildings put up before 1968, you don't actually need an occupancy permit; all you need is some paperwork from the county assessor confirming the structure was already standing by then.

So—if a single-family home was built before '68, does it still require a certificate of occupancy?

Does anyone happen to know how things work regarding loans for new small businesses? Specifically—if a startup manages to turn a profit within those first few months, are banks actually willing to consider lending options?

I’m honestly losing my mind here... look, if we are talking about structures built before 1968, there is absolutely no need for a building permit.

I own a commercial space in a building put up before 1968. All I ever needed was a simple confirmation from the county assessor; I didn't even need a building permit or a certificate of occupancy. We passed the inspections without a hitch.

Unfortunately, my luck ran out when it came to getting a loan. I applied for a small $5,000 line of credit, but it was a non-starter—even though the business had been turning a solid profit for a year and a half at the time. They demanded an endless mountain of paperwork and basically told me not to hold my breath right from the jump.
I haven't seen any small business owner lately who actually managed to get approved for a loan, not even for something basic like covering tax debt, which is usually the easiest thing to get financed.

First off, greetings to everyone else hanging out on this forum!

I have a few questions regarding my new small business. I’ve already turned in all the paperwork, so the registration from the local Secretary of State's office should be hitting my inbox in a day or two...
I'm planning on doing mobile computer repair, which means no physical storefront or office space to maintain.
Since I'm currently unemployed, I'll be responsible for covering my own Social Security, Medicare, etc. (roughly around $0.50 a month, please set me straight if my math is off), plus there's that extra payment every 3 months $133 (not entirely sure what that covers)...

The thing weighing most heavily on my mind right now is the bookkeeping side of things. I have a buddy who used to work as an accountant, and I'm hoping he can teach me the ropes so I can just handle the books myself. But honestly, I'm wondering how smart that actually is... and what kind of penalties we're looking at if I slip up and make a mistake?

Also, what kind of things can I actually write off as business expenses? For instance, could I use a car that's registered in my father's name? What about a laptop if I don't have the original receipt handy? Or maybe some old software, like an original copy of Vista or Office?

Anyway, that's pretty much everything for now... I would truly appreciate any advice or help you all might be able to offer.