Starting a small business

Kimberly Harris6 said:My advice? If you’re serious about starting this, just head down to a local branch of the Department of Commerce or check their online portal via Google. You can get all the answers there without running around aimlessly, and they can tell you exactly which type of business structure fits best. In my opinion, a standard sole proprietorship should do the trick.

2. Total setup costs will run you about $333
. 3. Ongoing costs include owner contributions, chamber of commerce dues, plus whatever operational overhead you decide on—like payroll if you hire staff, rent for an office, etc., depending on your setup. Most of these are recurring, and the actual amount will depend entirely on your revenue, turnover, and overall volume.

THANKS... 😁 I had no idea about the streamlined options available. I'll definitely look into that and see what my options are.🙂

Carol Perez4 said:THANKS... 😁 I had no idea about the streamlined options available. I'll definitely look into that and see what my options are.🙂

Just double-check which specific branches they actually have. I’m pretty sure there's one over at the IRS office on Main Street. If you happen to be out that way, give them a call first.

I've got a seasonal business kicking off in May and wrapping up by October, and I'm trying to figure out if I actually qualify for maternity leave. Honestly, I have no clue where to even look for an answer—Google is being completely useless and won't give me a straight response. 🤷

Morgan Alvarez26 I'm still waiting to see what you have to say. Go ahead.
I run a seasonal business that operates from May through October, and I’m trying to figure out if I’m actually eligible for maternity leave. I have no idea where to find a straight answer on this, and honestly, Google isn't giving me anything helpful at all. Why is it so hard to get a clear response? 🤷

I’d suggest getting in touch with the Department of State or the Department of Commerce directly. Honestly, they’re the ones who should have all the answers you're looking for.

I consider myself a bit of an artist; I spend my time painting, coloring, and just creating things out of thin air.
My goal is to start selling my handmade pieces—things like jewelry, unique souvenirs, and other crafts—during the busy summer tourist season. I’m looking for the most cost-effective, straightforward, and legally sound way to get this off the ground.
Should I look into setting up a formal small business, perhaps something like a home-based craft studio, or would it be simpler to just register as a freelance artist through the Secretary of State business registry?
I would really appreciate any guidance you all can offer. Thanks!

I've decided to take the plunge and start my own small business. Does anyone here have any firsthand experience or practical advice regarding running an arts-based sole proprietorship? I'd love to hear your thoughts. Thanks in advance for the help!

Get to the point; your topic is far too broad. People are already aware of the basics, but I doubt they have the patience for vague generalities. Registering as a sole proprietorship is undoubtedly your most cost-effective route—though I’m not quite sure what you mean by "home-based hobby business." You need to get to an accountant immediately to run the numbers and find the cheapest way to get moving. Are you planning on having any sort of coverage? It would be wise to ensure you don't end up on a federal delinquency list for unpaid taxes and payroll contributions within six months, forcing you to shut down your business because you simply can't keep up with the debt.

Aaron Miller5 said:I've decided to take the plunge and start my own small business. Does anyone here have any firsthand experience or practical advice regarding running an arts-based sole proprietorship? I'd love to hear your thoughts. Thanks in advance for the help!

You weren't exactly specific with your question, but if you're just starting out, I’d suggest looking into whether you qualify for the simplified tax filing system for small businesses. If you go that route, you pay slightly lower payroll taxes and a monthly flat income tax of roughly $53 plus surcharges. You won't be required to hire an accountant to manage full books—just a simple ledger of sales—but there's a catch: you can't file for deductions, which means you lose the ability to get a refund on the taxes you pay. If you want to dig into the details, check out this link; it isn't the most recent update, but most of it (aside from certain tax rates) is still relevant: http://www.irs.gov/business-tax-info/simplified-filing_096.pdf . Look, I'm just trying to help you get off the ground without unnecessary pain. Honestly, most small business owners I know these days open up shop, work for a few months, get absolutely crushed by the overhead and taxes, shut down, and then spend years paying off debt. I'm not trying to scare you, but you really need to make sure your finances are solid before jumping in.

If anyone on here owns a coffee shop, could you please shoot me a DM? I have a few questions about the day-to-day grind and was wondering about the ballpark startup costs I should be looking at... Thanks so much! 🙂

Need some advice here. A colleague and I are looking at starting a small business together as partners. My question is: do we both have to shell out roughly $500 each in taxes/contributions, or is there some other way to handle things when you're running a partnership?

rowdygull90 said:Need some advice here. A colleague and I are looking at starting a small business together as partners. My question is: do we both have to shell out roughly $500 each in taxes/contributions, or is there some other way to handle things when you're running a partnership?

You both have to pay them. And it’s not just "around" $500 per person—it's exactly $1,766.86 each.

Kimberly Harris6 said:You both have to pay them. And it’s not just "around" $500 per person—it's exactly $1,766.86 each.

Thanks a lot, but how exactly did you land on that number?

rowdygull90 said:Thanks a lot, but how exactly did you land on that number?

Everything is listed right there in the IRS filings, covering both corporations and sole proprietorships. Just check the January 2011 issue of the magazine.

Hey guys, I'm looking into starting my own small business doing some computer and freelance work (basically tech consulting/freelance services)
Do I actually need some kind of trade certification or a specific college degree to get the ball rolling?

I'm thinking about adding Nike to my footwear lineup. Anyone here have experience with the best spots to source their stock?

I’m looking to open my own massage studio—does anyone happen to know what the requirements are? Specifically, how does the space need to be set up? Does it need a dedicated restroom and things like that?
Please, I could use some help here...
thanks

Can someone give me a straight answer here? If a small business owner operating outside the sales tax system pulls in roughly $100,000 $0.00 annually but has expenses totaling about $80,000, what’s the actual damage regarding taxes throughout the year and at year-end? More importantly, how much cash is actually left over to transfer to a personal account? Thanks!

David Mitchell4 said:Can someone give me a straight answer here? If a small business owner operating outside the sales tax system pulls in roughly $100,000 $0.00 annually but has expenses totaling about $80,000, what’s the actual damage regarding taxes throughout the year and at year-end? More importantly, how much cash is actually left over to transfer to a personal account? Thanks!

If you're pulling in 100k $0.00 and your expenses hit 80k $0.00, that leaves you with a yearly profit of 20k $0.00.
The standard federal deduction is 21k $200.
Basically, that means you won't owe any income tax because your annual deduction is higher than what you actually made!

Just a heads up—if your total revenue climbs above 85k $0.00 one year, you'll be required by law to register for sales tax the following year.

Thanks for clearing that up. Does that standard deduction still apply if you were paying yourself a monthly salary as a small business owner? Once you register for sales tax, you start dealing with income tax, but does the calculation method remain identical?

David Mitchell4 said:Thanks for clearing that up. Does that standard deduction still apply if you were paying yourself a monthly salary as a small business owner? Once you register for sales tax, you start dealing with income tax, but does the calculation method remain identical?

Nope.
You're mixing things up a bit here! 🙂
Sales Tax and Income Tax are two totally different beasts.

If your annual revenue hits over $85, $0.00 you have to register for Sales Tax. This means when you bill a client for goods or services, you have to charge and report Sales Tax (let's say 7% depending on your state). So, if your service costs $333, until now you just billed them $333, but once you're in the system, it becomes $333 + Sales Tax = $410. You pay that extra $77 to the government. On the flip side, any Sales Tax you pay on your own business expenses counts as an input credit, while the base price remains your net cost. Before this, your total expense was just the full amount on the receipt.

Income tax is calculated exactly like it always was: total revenue minus total expenses equals your income. Then, you subtract your standard deduction and any other tax credits to find your taxable income.

To actually become subject to corporate income tax, you’d need way higher revenue and to meet a bunch of other specific criteria.