Starting a small business

Danet-1

What am I supposed to do when the government is completely incompetent? The small business laws state certain trades require a physical storefront, yet they were too lazy to actually draft the regulations defining which specific businesses fall under that rule (even Canada has clear guidelines for this).
I can already see the lady at the local permit office looking me dead in the eye and demanding paperwork that doesn't even exist, leaving me to figure out how on earth I'm meant to produce it.

MIT is meant for retailers, restaurateurs, and transport providers.

mistywolf68, you’ve got to look into the Lacey Act; it lays out all those specific standards and regulations you need to follow if you're working in this industry.

And let’s be real—if you’re actually turning out wood products, you're going to have sales, which means you'll need to meet those same compliance standards just to keep the trade moving.😁

Your best bet is to check in with the local Chamber of Commerce, since they're the ones who really dictate how those requirements are applied.😛

Thanks, Henry Edwards33
I’ve come across that Lacey Act before, but everywhere I look, it seems like people are just calling it a proposed bill rather than actual law.

I’m not sure if this has come up anywhere else yet, but I was wondering—in a general partnership, are both partners required to pay their own payroll taxes? Thanks

It’s mentioned somewhere in these threads if you care to dig through them, but I really can't be bothered to go looking 😁
The short answer, though, is that both partners are responsible for paying their own contributions.

Quick question.
I’m currently unemployed, but the plan is to launch my own small business as a solo founder. I'm wondering if starting a business under my own name opens up any specific grants or better loan rates?
I'm gonna call the SBA helpline and then head over to the local Small Business Administration office tomorrow to pick their brains. I've been digging through federal websites, but it seems like most of those grants are for businesses already up and running. The women-owned startup programs I saw seem to be closed out too. If anyone knows if there's an advantage to starting something while I'm technically unemployed, please let me know what you know.
Thanks for the help.

Some municipalities or even entire counties offer non-repayable grants of roughly $667 or more to help you launch a small business, provided you set up shop within their borders.

At the end of the day, everything hinges on your location—it all depends on which part of the country you call home...

Hey everyone, quick question—if anyone knows the deal, let me know! I’m looking into opening my own tire shop and wanted to see if anyone could walk me through the paperwork nightmare required to get things up and running. Thanks in advance...🙂

Hey there,
I’m trying to get some clarity on how to set up a business focused on importing goods from overseas—mostly looking at shipping stuff in from the US and China.

It’s a bit hard to pin down exactly what I’d be moving right now. It’s not like I’m keeping secrets or anything; it just really depends on what I think will move fast once it hits the American market.
The whole operation would be strictly online, from the initial sourcing to the final sales.

So, my main questions are: do I actually need to lease a physical space to use as a warehouse? And what kind of specific business entity should I be looking into registering here in the States?
I’ve been doing some digging on Google, but a few things are still tripping me up. For instance, I understand sales tax applies to everything, but customs duties seem to hit certain items differently depending on their category and where they're coming from. But for starters, I just have these two questions.🙂

Thanks so much for any help you can give.

I have a few questions about starting my own small business:

1. If I wanted to open something like a computer repair shop, am I legally required to have a specific degree or certification in that field just to get started?

2. Do I really have to pay into Social Security and healthcare every single month, even if I don't actually need those benefits right now?

3. I'm also a little confused about what kind of commercial space I'd need and whether there are specific building codes or technical requirements I have to meet first.

Thanks so much for any help you can give me.

You don't actually need to pay for computer repairs
—I mean, you have to deal with the IRS and state taxes anyway
—so why bother with extra fees?
It’s just not worth the headache...

Does anyone have a rough idea of what I’d be looking at for Social Security and health insurance premiums? Honestly, I’m just trying to get a sense of the total cost... I'm curious too.

If you’re actually planning on funding both parts of your 401(k), you're looking at roughly $593 🙂
per year.

silverbison293 said:You don't actually need to pay for computer repairs
—I mean, you have to deal with the IRS and state taxes anyway
—so why bother with extra fees?
It’s just not worth the headache...

Thanks for the help... I actually have one more question:

Regarding software—specifically macOS in this case—I know I'm supposed to use an official version, but does anyone actually check??
I've noticed a few times now that repair shops don't always install genuine macOS; it feels like they just keep the legitimate copies tucked away in a drawer for when an inspector shows up, at least that's my impression.🤷

Look, strictly speaking, you really ought to have legitimate macOS on every single machine you run—because if the IRS or some other tax authority ever decides to audit you... well, they can definitely start digging into that stuff.

From what I gather, though, it’s pretty rare for them to actually go after you for it.

(And just to be clear, I’m not suggesting you go out and buy some bootleg version of macOS or anything like that.) 😍

Could someone please verify if I am calculating income tax and sales tax correctly? I am looking for a reliable answer, ideally from an accountant, a tax professional, or a business owner who is absolutely certain about this. The following example is hypothetical; it is a bit long, but there is no other way to explain it, and I have just three quick questions at the end. Example:

The owner of a small business or a Small Family Farm had total sales of goods or services amounting to $33333 last year, which was collected via invoices. Since the taxpayer is registered for sales tax (via $28333), we subtract the sales tax from those $33333; if the entire amount is subject to a 23% rate, then the receipts equal $27100.
From that $27100, we deduct expenses, such as $7100, leaving an income of $20000. From these $20000, we then subtract the standard deduction, which for areas outside of special federal zones is $7200 annually (assuming the 2009 figures still apply).
This leaves $12800, which serves as the taxable base for income tax at specific rates; for $12800, the rate back in 2009 was 15%.
$12800 x 15% income tax = $1920, which would be the income tax paid.
Example finished—could you please confirm if everything in here is indeed correct?
So, should the sales tax be paid alongside the sales tax return as $6233?
The IRS told me that the business owner doesn't actually pay that sales tax, but rather the customer does. How would you explain that? To me, it looks like I, as the entrepreneur, am the one paying it. I didn't ask for clarification immediately because I wasn't familiar with these concepts yet; I only asked some general questions and didn't even have this specific example ready.
Lastly, what is the professional term for those $33333 mentioned at the start—is it "receipts" or "receipts excluding sales tax"?
Please, everyone, weigh in while you still can...😁

Daniel Davis43,
Look, I’m trying to be helpful here, but I honestly didn't follow what you were asking. 😁

Let's take this step by step so we can clear things up.

First off, you brought in $33333 in revenue. And that was back in 2009, right?

If that's the case, there's no sales tax involved here. Under US tax law, if your revenue stays under $28333 during a calendar year, you don't automatically trigger sales tax registration requirements for the following year.
So, the income you earned doesn't have sales tax baked into it.
Even when you *are* registered for sales tax—like your tax advisor mentioned—you aren't actually paying that tax out of your own pocket. The customer pays it. You just invoice them for the value of your goods or services and add the appropriate percentage on top. That's how it works: the buyer covers the tax, and your only job is to collect it and pass it along to the IRS using the proper filings.

Because of that, you don't subtract sales tax from your gross income when you're filing your income tax return.
On top of the standard deduction, you also have other deductible expenses you can claim on your return—things like paid premiums, medical expenses, real estate investments, and so on.

By the way, income is always calculated before any sales tax is added. 😉

Thank you for such a prompt response!
My question is purely hypothetical—I made sure to clarify that right at the start. I am simply researching tax implications; I don't have any active business ventures at the moment, otherwise, I would already be fully informed on the matter...
Let's say, for instance, that I maintain the exact same level of revenue for two consecutive years, as outlined in my example, or perhaps even three or more years in a row.
As for the other points you mentioned, I will need to look into those details before I can provide a definitive answer...

Henry Edwards33 said:Daniel Davis43,
Look, I’m trying to be helpful here, but I honestly didn't follow what you were asking. 😁

Let's take this step by step so we can clear things up.

First off, you brought in $33333 in revenue. And that was back in 2009, right?

If that's the case, there's no sales tax involved here. Under US tax law, if your revenue stays under $28333 during a calendar year, you don't automatically trigger sales tax registration requirements for the following year.
So, the income you earned doesn't have sales tax baked into it.
Even when you *are* registered for sales tax—like your tax advisor mentioned—you aren't actually paying that tax out of your own pocket. The customer pays it. You just invoice them for the value of your goods or services and add the appropriate percentage on top. That's how it works: the buyer covers the tax, and your only job is to collect it and pass it along to the IRS using the proper filings.

Because of that, you don't subtract sales tax from your gross income when you're filing your income tax return.
On top of the standard deduction, you also have other deductible expenses you can claim on your return—things like paid premiums, medical expenses, real estate investments, and so on.

By the way, income is always calculated before any sales tax is added. 😉

If we look at it from that perspective, then yes, it's true the customer pays it. But in that case, my product, which was supposed to cost, say, $33, now I have to raise the price to $41, which makes it much harder to sell... In my opinion, if the sales tax were added on top of the $33 price and then paid by the consumer, only then would I say the customer is paying it.
I'll have to look into this further, though; I'm not entirely certain right now. I have to head out, so I will write more later...

In addition to the standard deduction, you also have other tax-deductible expenses that can be claimed on your income tax return—things like paid contributions, medical expenses, real estate investments....

I am aware of this part, but I will address the rest later...😉

Daniel Davis43 said:If we look at it from that perspective, then yes, it's true the customer pays it. But in that case, my product, which was supposed to cost, say, $33, now I have to raise the price to $41, which makes it much harder to sell... In my opinion, if the sales tax were added on top of the $33 price and then paid by the consumer, only then would I say the customer is paying it.
I'll have to look into this further, though; I'm not entirely certain right now. I have to head out, so I will write more later...

In addition to the standard deduction, you also have other tax-deductible expenses that can be claimed on your income tax return—things like paid contributions, medical expenses, real estate investments....

I am aware of this part, but I will address the rest later...😉
In addition to the standard deduction, you also have other tax-deductible expenses that can be claimed on your income tax return—things like paid contributions, medical expenses, real estate investments....

I am aware of this part, but I will address the rest later...😉
In addition to the standard deduction, you also have other tax-deductible expenses that can be claimed on your income tax return—things like paid contributions, medical expenses, real estate investments....

I am aware of this part, but I will address the rest later...😉
Please disregard that previous post; I was attempting to make a different point and rushed my response, resulting in an error that doesn't really change the core issue.
I was actually referring to those $33333 from the beginning of my example. Consider this: once customers pay me, the entire amount sits with me, and the sales tax within that total is $6233. Am I the one who pays that tax to the government? If I am the one remitting it, then it isn't the customer paying the state, it is me. The customer paid it to me initially, but ultimately, I am the one paying the government, not the customer...