Need answer from small business owners

[UrbanWolf]

You also have to look at your local city business and tax license requirements. The state SOS.website has everything you need to know as far as state requirements for additional licenses. If you are providing supplies such as paint and canvasses and are marking them up for a profit you will also need a sales tax license. I can't imagine that you need additional licensing to teach painting but don't take my word for it. You will want an accountant for dealing with the irs and filing your monthly/quarterly tax deposits.

Do you have a business plan at all as far as what you will be charging for and how much as well as what you expenses and projected sales might be?

Read the book The E-Myth.

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Most likely we won't be selling things for profit, but that might change, last time we called they said there is no license required as long as we are not store front location and the number of clients a day is under "commercial amount".

[def90]

I'm joining this with my father. He teaches art.

You are going to want to develop a solid plan as well as a contract and business flowchart specifying who does what and who is responsible for what. There are countless partnerships out there that fall apart in every bad way imaginable simply because there was no plan as to how anything would be run and what everyones position/responsibilities are.

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[def90]

Most likely we won't be selling things for profit, but that might change, last time we called they said there is no license required as long as we are not store front location and the number of clients a day is under "commercial amount".

If you are paying rent on a space i would seriously look at selling supplies at a retail level in order to pay the rent in any way possible. I think you would be overlooking a major source of income. I don't think you have thought through this enough yet..

Take out a notebook, write down the salary you want to make. Now add up your rent and any bills you may have. Now take the amount you want to make and add that to your rent and bills, add on income taxes accounting fees and so on. Now you have the number that you need to make for sales just to break even. Now take that number and figure out how many people you need to teach each month at the rate you plan on charging and see if it is even possible.

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[Great-Kazoo]

Most likely we won't be selling things for profit, but that might change, last time we called they said there is no license required as long as we are not store front location and the number of clients a day is under "commercial amount".

My suggestion is, follow their advice. Start as an in home business. When the business takes off, you run out of room. Or neighbors complain, then open a store front. Why deal with out of pocket expense, before you generate income.

[UrbanWolf]

My suggestion is, follow their advice. Start as an in home business. When the business takes off, you run out of room. Or neighbors complain, then open a store front. Why deal with out of pocket expense, before you generate income.

The neighbors have already complained, my family's in home business have been going on for 4 years, right now is probably a good time. Just need to find a place that is relatively close to where my family lives, so we don't lose clients by moving too far.

[Ah Pook]

You might want to contact the local municipality and get info on home based businesses.

You will most likely need;

Federal tax ID number (EIN)
State sales tax license
Local business license

[funkymonkey1111]

There is no requirement that a registered agent have "normal business hours."

[spqrzilla]

The registered agent is the name and address of the person authorized to accept service of process for the entity.

I am an llc but registered with the irs as a scorp

That makes no sense. An "S" corp is an entity that was formed as a corporation that has filed with the IRS to be treated as a Subchapter "S" corporation ie., a flow through entity that does not itself pay income tax but instead passes such down to the shareholders. Similar to a partnership. As opposed to a normal corporate tax status that pays income taxes on profits at the corporation. See IRS form 2553 for instructions. A limited liability company isn't a corporation. A limited liability company defaults to partnership tax status unless you've filed a Form 8832.

[def90]

The registered agent is the name and address of the person authorized to accept service of process for the entity.



That makes no sense. An "S" corp is an entity that was formed as a corporation that has filed with the IRS to be treated as a Subchapter "S" corporation ie., a flow through entity that does not itself pay income tax but instead passes such down to the shareholders. Similar to a partnership. As opposed to a normal corporate tax status that pays income taxes on profits at the corporation. See IRS form 2553 for instructions. A limited liability company isn't a corporation. A limited liability company defaults to partnership tax status unless you've filed a Form 8832.

Tell that to my accountant.. My business entity in Colorado is an LLC.. I file as an SCorp with the IRS. LLCs as an entity are not available in every state however the IRS apparently views them in the same way as an scorp..

All of my business stuff is llc and my tax returns all say scorp.

Just go to google and type in 'llc file as an scorp' and read up.


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[Firehaus]

My understanding is that you get more protection through a s-corp, but you can have the same tax benefits with an llc filing as a s-corp, just less protection.