Starting a small business

Anthony Wilson4 said:Hey there.

I’ve got a couple of questions about setting up a sole proprietorship. First off, the big one: am I on the hook for monthly fees to the government from the moment I register the business until I actually start seeing any profit? For instance, if I open everything up at the end of February but don't pull in a single cent until the end of May, am I stuck paying costs for those three months?
I get that once things are up and running and I'm actually making money, there are taxes and other fees to deal with...

Second thing—since I'm looking at registering this business here in the States (I hold dual citizenship in Canada and America), would I be able to sponsor work visas for people coming over from Canada to work for me?
If that's actually an option, what kind of headache would the procedure involve?

You can simply choose to set your official business commencement date for the end of May.

Alright, thanks a ton for getting back to me. That actually clears up my biggest headache right off the bat. My second question is more about the whole work permit situation for people who aren't US citizens. Is that even on the table?...
I mean, say you have a small business registered here in the States, but you want to hire someone from Mexico or some other non-US country.

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Greetings,

I’ve officially launched my small business as a sole proprietorship—and now I find myself in a bit of a hardware dilemma. I have my personal desktop at home which holds absolutely everything (personal files, photos, you name it), and then I purchased a dedicated laptop specifically for work where everything is strictly professional and legitimate. To keep things organized, I essentially have them sitting side-by-side, plugging into the same monitor depending on whether I am "on the clock" or not. My concern is this: if an IRS auditor happens to show up at my door, can I simply point to one machine and say, "this is private" and "this is business," and they will respect that boundary without touching my personal data? Or could this setup lead to some sort of headache during an inspection?

Thanks, LP

Greetings, everyone. I have a quick question for the group; I noticed a similar thread floating around previously, but I haven't been able to pin down a definitive answer. I am looking into launching a sole proprietorship as a self-employed individual, using my current apartment as my primary business address. The catch is that I live in a condo. I was wondering if this is actually feasible under local zoning laws, and if so, what the typical process looks like? Thanks in advance for any insight you can share.

Hello, everyone. I have a question for the group; I noticed this has been brought up before, but I haven't quite managed to track down a clear answer. I am looking into launching a sole proprietorship as a self-employed individual, using my current apartment as my business headquarters. The catch, however, is that I live in a condo. I was wondering if this is actually feasible, and if so, what the specific process looks like? Thanks in advance for any insight you can offer. 😊

So, I’ve been thinking about starting my own small trucking business. The idea would be to run daily hauls for a specific company that would just pay me directly via invoice. I'm trying to wrap my head around what the tax situation looks like these days—you know, all the various bites taken out of my paycheck like health insurance, Social Security, sales tax, income tax, and so on. I actually ran a small business years ago, but the rules have changed so much since then that I feel a bit lost. I really want to get a clear picture of all the taxes and fees I'd be on the hook for and what the percentages look like, just so I can figure out if this is even worth the headache in the end.

To everyone out there currently wrestling with these kinds of headaches—best of luck to you. Honestly, there isn't much else I can say—I know firsthand just how much of an uphill battle it is to actually pull all of this off.

What kind of business entity actually makes sense if I'm flipping art pieces?

I was originally planning on just running a simple sole proprietorship, but my whole business model has shifted since then.

Regarding the tax implications of a sole proprietorship—please correct me if my math is off here:
If I buy item X for $290 $0.00 and sell it for $300 $0.00, my actual profit is only $10 $0.00, but have I already hit the annual revenue cap for a sole proprietorship because the client paid me $300 $0.00?

Which business structure would be the most efficient move for me?

Morning, everyone,
so I’m planning on finally pulling the trigger and launching my own little online boutique toward the end of the summer.
The whole vibe is selling clothing that I'll be sourcing directly from Italy.
Can anyone out there walk me through the import side of things? Like, specifically, what kind of paperwork am I looking at, and how does the whole customs process actually work?

I’ve already been trying to hunt down some wholesalers, but honestly, I can't seem to find a single decent email address to reach out to about shipping options and stuff.

Hey everyone,
I was wondering if I could just go out on my own and start doing residential electrical work as an electrician with my current credentials.
Do I actually need to go back to school for some kind of extra certification, or is my four-year technical degree enough to get me licensed and moving?

Brandon Harris72 said:Hey everyone,
I was wondering if I could just go out on my own and start doing residential electrical work as an electrician with my current credentials.
Do I actually need to go back to school for some kind of extra certification, or is my four-year technical degree enough to get me licensed and moving?

If you've got the credentials as an electrician, you're good to go and can open your own shop. If not, you can always just hire someone who actually holds the license and run the business that way. Or, you know, just go back to school and get the qualification yourself.

casualstag4 said:If you've got the credentials as an electrician, you're good to go and can open your own shop. If not, you can always just hire someone who actually holds the license and run the business that way. Or, you know, just go back to school and get the qualification yourself.

So, here's the thing... I'm not talking about some guy who just finished a quick trade certificate; I'm actually an electrical engineer by degree. Because of that, there's basically zero chance I can just open my own contracting firm without hiring a licensed electrician to cover me. Plus, I'm wondering if it's even possible to "downskill" and get a specific trade license since my current degree is technically at a higher level?

Brandon Harris72 said:So, here's the thing... I'm not talking about some guy who just finished a quick trade certificate; I'm actually an electrical engineer by degree. Because of that, there's basically zero chance I can just open my own contracting firm without hiring a licensed electrician to cover me. Plus, I'm wondering if it's even possible to "downskill" and get a specific trade license since my current degree is technically at a higher level?

The list of registered businesses specifically states you need to be a certified electrician, so I'm not sure if your current credentials will cut it for that specific type of business. Your best bet is to call your local Chamber of Commerce or the city clerk's office—they'll give you a straight answer. As for retraining, I don't see why you couldn't pull it off if you decide to go that route.

Can I actually start my own small business if I don't personally own any assets right now?

Bryan James4 said:Can I actually start my own small business if I don't personally own any assets right now?

Yeah, you can.

casualstag4 said:Yeah, you can.

It feels a little bit contradictory to me, though... I mean, from what I'm reading, a small business owner is personally liable for all their debts with their own assets, right?

Bryan James4 said:It feels a little bit contradictory to me, though... I mean, from what I'm reading, a small business owner is personally liable for all their debts with their own assets, right?

Just because they don't have anything to lose right now doesn't mean they won't have something later. Plus, you can just let that debt sit there and "simmer" until they actually acquire enough assets to make it worth the creditors' while.

casualstag4 said:Just because they don't have anything to lose right now doesn't mean they won't have something later. Plus, you can just let that debt sit there and "simmer" until they actually acquire enough assets to make it worth the creditors' while.

That makes sense. I mean, if they want to actually run a business, they're gonna need tools or equipment, which definitely counts as assets.

Hey there,
I’m planning on launching a sole proprietorship and hiring some employees.

I could really use some info—basically just looking for a little help to confirm I've got my facts straight:

Once I wrap everything up, I'll handle the registration, get a company seal made, open a business checking account, and file the RPO form to register as a taxpayer; what exactly comes next before I can actually start operating?

I'm assuming the next steps involve drafting the cash register limit regulation and an internal fiscalization policy? And am I correct in thinking I have to create both regardless of whether I plan to take cash or not?
If I do end up dealing in cash, will I need to go out and buy specific hardware and software for fiscalization and issuing receipts, and does anyone have a solid recommendation for those?

Also, regarding the timeline: if my official registration date is, say, April 28th, 2021, then the earliest I could realistically start working would be May 6th, 2021? Can I use those eight days to knock out all the previous steps like getting the seal, opening the account, and filing the paperwork?

As a sole proprietor who is already working for another employer, am I required to register with Social Security and Medicare, or am I exempt? It's pretty confusing because I read somewhere that I might still be obligated to pay contributions based on this second line of work.

Could you guys recommend a bank and let me know where I should open my business account? I'm curious about fees and which bank makes the whole process the most painless. Right now, everything I have is with Chase, so would sticking with them be the easiest route, or do other banks offer better perks? Edit: I already have an account with them; can I just repurpose that one, or am I forced to open a completely separate business account?