Starting a small business

Donna Martin11 said:Respectfully,

I have a question regarding business logistics.

As a small business owner—currently operating with manual receipt books rather than a digital POS system—how should I issue an invoice to a corporation for a specific service if they intend to pay via bank transfer?

Thanks.

How’s life treating you?
Just include the company name, their address, and their Tax ID. You need all that on the invoice—everything else stays the same.

Has the IRS started requiring those little ledger books for sole proprietors who fall under the simplified tax rules?
Up until now, small business owners have just been using manual receipt books, and honestly, that's still how most people do it.
When exactly does this new requirement kick in? Is it starting April 1st?

I haven't actually filed my LLC paperwork yet, but I'm trying to get ahead of everything, including the bookkeeping stuff.🙂

mellowmarlin15 said:Has the IRS started requiring those little ledger books for sole proprietors who fall under the simplified tax rules?
Up until now, small business owners have just been using manual receipt books, and honestly, that's still how most people do it.
When exactly does this new requirement kick in? Is it starting April 1st?

I haven't actually filed my LLC paperwork yet, but I'm trying to get ahead of everything, including the bookkeeping stuff.🙂

The book exists, and those on the simplified tax schedule will need to start using them starting July 1st. It isn't quite that simple, though; even restaurant owners can't jump onto the simplified plan until January 1st, and retailers have to wait until April 1st, whereas everyone else—the group we're looking at—can join on July 1st.

So, do you actually go out and buy the book, say at The New York Times, and then the IRS stamps it or issues some kind of certificate? Or do you just pick up the completed version directly from the IRS?

Hi there..

I'm trying to calculate the actual total cost of an employee—including payroll taxes and all those extra employer contributions—if I hire them at the federal minimum wage.

Thanks in advance

Donna Martin11 said:Hi there..

I'm trying to calculate the actual total cost of an employee—including payroll taxes and all those extra employer contributions—if I hire them at the federal minimum wage.

Thanks in advance

Roughly $3,250 total—with the worker taking home about $2,240.

Hi there,
I was wondering if it’s actually feasible to run these specific types of businesses as a sole proprietorship under the simplified tax rules?
Also, would anyone know if I could legally operate any of these out of my own apartment?

NAICS 541611 - Business consulting and management services
NAICS 541430 - Market research and public opinion polling
NAICS 541211 - Accounting, bookkeeping, auditing, and tax preparation services
NAICS 524210 - Insurance agents and brokers

Thanks so much!

You can operate as a sole proprietor. As for businesses that can be run right out of your own home, there’s an IRS regulation you can easily look up online. There are plenty of options available, so I guess you should probably check them all out.

Hey there, dragec84, thanks so much for getting back to me so quickly!

Steven Fisher4 said:Hi there,
I was wondering if it’s actually feasible to run these specific types of businesses as a sole proprietorship under the simplified tax rules?
Also, would anyone know if I could legally operate any of these out of my own apartment?

NAICS 541611 - Business consulting and management services
NAICS 541430 - Market research and public opinion polling
NAICS 541211 - Accounting, bookkeeping, auditing, and tax preparation services
NAICS 524210 - Insurance agents and brokers

Thanks so much!

You can't register for tax consulting without getting approval from the AICPA—you've gotta pass their exam first.

Hi there,

I’m looking for some clarity—if I set up a sole proprietorship in Indianapolis, would I be allowed to run a seasonal pop-up stand at the beach during the summer? My main concern is that with this type of business structure, there's a rule against having "separate locations"—though honestly, the legal jargon is a bit vague on what that actually entails in practice.

One more thing—are sole proprietors required to deposit their daily earnings into a bank account immediately, or can I hold onto the cash for a few days? I know there's a limit on how much cash a business can keep on hand, but what happens if my takings exceed that threshold?

thanks

Not really sure where to ask this...
My bookkeeper just sent over a notice saying small business owners have to pay a forestry fee. Since when was that even a thing?
And apparently, I’m being hit with back payments dating all the way back to 2012—even though that wasn't required then. Just my luck.

Nathan Cox25 said:Not really sure where to ask this...
My bookkeeper just sent over a notice saying small business owners have to pay a forestry fee. Since when was that even a thing?
And apparently, I’m being hit with back payments dating all the way back to 2012—even though that wasn't required then. Just my luck.

It became mandatory 😉

Following a ruling by the Supreme Court of the United States (No. U-I-1408/2010) published in the Federal Register on June 26, 2012, the provision in the Forestry Act was struck down. Previously, only corporations were liable for fees related to the general public functions of forests; individual contractors were exempt.

As of June 26, 2012, sole proprietors conducting business became obligated to pay this fee for using forest resources at a rate of 0.0265% of total revenue.

Since this obligation for small businesses kicked in specifically upon the publication of that court decision on June 26, 2012, they are making an exception for 2012 by calculating the fee for only 188 days. According to info from Weyerhaeuser, the partial liability for 2012 is determined by applying a reduced rate to the total gross receipts recorded in your books (excluding sales tax), which comes out to 0.0136% ((0.0265 * 188) / 366).

The calculation is reported using Form OKFŠ (attached), which needs to be submitted by April 30th for the previous year to the following address:

Weyerhaeuser,

2 F. Vukotinović St,

Washington, D.C.

Within that same window (by April 30th), you also need to pay the annual fee (or the difference between any quarterly prepayments and the final calculated amount).

Payments should be sent to the Weyerhaeuser account:

1001005-1700055099 or Routing Number 021000021

Code: 67

Reference number: SSN -YYYY (the four-digit year)

Estimated prepayments based on Form OKFŠ must be paid quarterly on these dates: 04/30, 06/30, 09/30, and 12/31 of the current year.

From post 1900...

Looking for some advice here,
I’m a bit stuck on whether this decision applies to people renting out their own properties—those who pay both Social Security and Medicare taxes and fall under corporate income tax rules, even without being registered as a business entity.

I already ran the numbers, sent out the payment notices, and filed the paperwork with the US Forest Service.

But now I've got this dilemma... honestly, even though an article from the IRS suggests they are liable for contributions, it just doesn't feel right to me. I guess I'm wondering if "business activity" actually extends to unregistered individuals, or if that's just a massive overreach of the rules...? What do you guys think?

thanks, lili p.
I’ve got some paperwork that needs to be mailed out, dated April 30th—but I haven't actually sent the payment yet since my accountant just got the invoice to me today. It’s been one of those chaotic days where I haven't even been near my computer to get onto my online banking... should be settled by the end of the week. Hopefully, they won't hit me with late fees for being a few days behind. 🤷

Richard Howard55 said:Looking for some advice here,
I’m a bit stuck on whether this decision applies to people renting out their own properties—those who pay both Social Security and Medicare taxes and fall under corporate income tax rules, even without being registered as a business entity.

I already ran the numbers, sent out the payment notices, and filed the paperwork with the US Forest Service.

But now I've got this dilemma... honestly, even though an article from the IRS suggests they are liable for contributions, it just doesn't feel right to me. I guess I'm wondering if "business activity" actually extends to unregistered individuals, or if that's just a massive overreach of the rules...? What do you guys think?

My take? They shouldn't be liable because they aren't generating income through an actual independent business operation.

Raymond Martinez10 said:My take? They shouldn't be liable because they aren't generating income through an actual independent business operation.

There isn't much else to do, I guess. You'll just have to reach out to the US Forest Service, explain how you handled things, and ask them for an official ruling.

Hi everyone,
I currently run my own small business while also working a full-time job. Since I have plenty of free time on my hands—but never quite enough money—I’m looking to pick up a second job. My question is: am I allowed to be on another employer's payroll if I already own my own business? I want to keep working in my own company, but I wouldn't be officially "employed" there in terms of tax withholdings or Social Security contributions. Thanks in advance for any advice!

Does an outdoor vendor stall count as a separate business location? My reasoning is that a "separate facility" usually implies a fixed, permanent spot—but with this stall, I’m essentially here today and there tomorrow. I'm asking because, under current tax rules, small business owners on the flat-tax system aren't allowed to operate any secondary locations.

Your best bet is to reach out to the US Chamber of Commerce or the IRS. I’ve been reading through various threads on this forum regarding those new fiscalization regulations, and honestly, there seem to be endless conflicting scenarios everywhere. I operate as a sole proprietor myself, but since I don't run a separate production facility, I'm not really in a position to give you any solid advice. You should definitely check with the Chamber of Commerce.