Going Legal (federally)

[redhot]

OK, i just started thinking about going legel to the IRS with the creation of my new company...

What I need help on is this. ... I got my EIN the other day and need to know what else I need to do on the FEDERAL level for my new biz. I told them it was sole proprietorship and that I would hiring people in about a year. I didnt have a company name at the time ( i assume I can add that later) and that my business was web design and hosting.

Anybody know of what else I need on the federal level to fill out and do before I go to my state?
Thanks,
Please dont post I need a lawyer, i am getting one in a few weeks... i just wanna be prepared.

Thanks

[Nyonic]

We acutally use this service on a regular basis. Seems like everything we do needs a business of it's own :) If you're gonna do one...you might as well do them all. I love paying myself to work!

http://www.bizfilings.com/

You can do EVERYTHING online, in any of the 50 states.

[AdultTrafficker]

Er, you ned a lawyer.;) ...just joking.

You need an accountant if you're going to be dealing with the IRS.
You should think of getting incorporated. Self-employment tax at the end of the year will sneak up on you.

Good luck w/ your biz. Way to go mate :)

[jtp866]

if you are a sole proprietor, all responsibilities of the business falls on you, i.e. if your business owes dept, declares bankruptcy, or gets sued, you would personally be required to take care of all these financial obligations.

If you are incorporated, any dept the business owes, or if the business filed bankruptcy, or was sued, would be the responsibility of the business itself. You (or any other owner(s)) would not be financially obligated to cover these business losses.

Also, as I so pleasantly discovered last tax season, even though our government has promised to reduce taxes, they added an $400 self employment tax!

John

[TwinTone]

What kind of money do you think you will make? You shouldn't have to do anything else on the fed level.

Stay as a sole proprietor, and you probably won't need an accountant either. My hosting company made money last year, and I still managed to get $3000 back in taxes.. so unless you are thinking you are going to be making $100,000 your first year, you should be fine.

Just remember to keep a receipt for EVERYTHING that has to do with your business..

computers
printers
paper
software
desk
chair
anything you can imagine that as anything at all to do with helping you in your business. You should be just fine.

[highroller]

If you are going to only make like $2000 for the year no big deal.

I incorporated almost a year ago.

1. Yes an GOOD accountant is important.
I got a $24,000 deduction automatically for all 1st year businesses, so I got to buy a 1999 Ford Expedition Eddie Bauer

2. Keep EVERY receipt, gas, food etc. You write off meals and make them a business meal. In the USA I can even declare 1/2 of my bedroom in my house as 1/2 office and a rent payment as a deductible, the list goes on and on.

3.Very important to do the Inc. because the adult biz is tricky and if they do sue you like was said above, then you can get out of it with a inc. When you make some money in your business buy some real estate and write off and rent to people, I do it, and it's a great way to make a lot more money.



To sum it up, make all the money you can, write off all meals, advertising everything.
Take your profits, put some back into advertising, and the rest into real estate, and within 10 years you will be a millionaire.
Guaranteed!

[Nyonic]

Again...check out BizFillings...

You can even use my code if you please :)
http://www.bizfilings.com/bizpartner.asp?vendor_id=A207

They can manage all aspects of the incorporation process for you. And for a fair price too!

[Nyonic]

Business Filings offers packages that range from $75 - $295 plus state fees.

We've used both their Complete package as well as their basic formation package. You can save a bit more if you incorporate your business in Deleware...not sure what the deal is with this actually, but I do know that my partners in a dotcom I was involved in incorporated in Deleware too.

[highroller]

I was told that Deleware is the place you choose to Incorporate because yes it may be a little cheaper, but it's the 1 state that is completely private. With other states you get lots of letters and maybe phone calls whatever, but Deleware is very private and it was the state of choice, and you don't have to live there.
I forget why I didn't choose it though.

[Nyonic]

Because you love business spam perhaps?

We chose our own state, just because it's easier for filling all the tax shit come that time of year.

My mom is a financial planner, and this was her suggestion...because she does all my taxes, and I'm sure it's what was easier for her.

[EscortBiz]

http://www.companycorporation.com get a DE corporation there ASAP just get the standard share pckage 1500 shares at 0.01 Par.

Make sure your EIN is for that name you choose to have the DE corp under.

Open a bank account on that name with that EIN leave your SS# to yourself.

Keep RECORDS and yes based on if your single married etc. it will matter as well.

These are all one time setups do it right.

And yes if you plan on investing real estate under corporate names is the way to go keep your name off everything and keep your profile low im talking from self bad experiences

Wishing you the best in your new biz!!!

[playa]

when you got your EIN,, you was suppose to name your company then,,, if i remember when you change the name,, you'll need another EIN,,, or prolly some fucked up form to fill out,,,

either way it goes getting an EIN should of been the last thing you'd do,,,,

i have formed an LLC without accountants/or lawyers
and it only cost me $75 filing fee,,, this is the easiest route and it'll save you alot of $$ rather than having these so called professionals doing it for you,,,

forming an INC. well thats alittle more complicated and should be done by a CPA

[Taurus]

I thought that if you get a business tax ID, then it is no longer a sole proprietor. Usually the sole proprietorship will have your social security number, plus like 3 digits after that.

You registered your business, however I think you want to set up an LLC. I would recomend a trustworthy corporate lawyer to at least look over things.

The more leg work you can do yourself the better, however I have a good lawyer look at things. I just got out of a bad first venture and must recouporate and will use the same lawyer when start a new one.

I am not sure how things are done with registering on line, however if there are any loop holes that you do not know about it may not matter.

For example, register alternate names as doing business as names might be good as well in the name of your website for example. Make sure you always have clearly stated that it is an LLC company. then someone can say well they were promoting it as a sole proprietor on their website and other things and go after you personally. Just be carely and do not go with the quick fix for starting things up.

Just in case because you never know. At least incorporate before you get big or do anything big.

[Toxictoy]

You definitely should incorporate - either as an S or regular - LLC has other liability risks. I say - don't do it online!!!

check out http://www.adultsitelaw.com/

They do not recommend that you incorporate online - as any company sueing you (and this is completely paraphrasing them and putting it simply) could disqualify your incorporation status if they show you did not uphold the incorporation rules etc. Basically after that you are without liability protection and your own personal assets can be gone after.

Something to think about. Just remember the addage - you get what you pay for.

[playa]

Originally posted by Toxictoy
You definitely should incorporate - either as an S or regular - LLC has other liability risks. I say - don't do it online!!!

check out http://www.adultsitelaw.com/

They do not recommend that you incorporate online - as any company sueing you (and this is completely paraphrasing them and putting it simply) could disqualify your incorporation status if they show you did not uphold the incorporation rules etc. Basically after that you are without liability protection and your own personal assets can be gone after.

Something to think about. Just remember the addage - you get what you pay for.


aslong as you make a clear seperation from your business and personal expenses,,, the term is called
"Piercing the Corporate Viel"

so many business use to run up charges and just file bankruptcy without owing shit,,