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Jeffrey Kafer
Assistant Zookeeper
Joined: 09 Dec 2006
Posts: 4931
Location: Location, Location!
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 Posted: Sat Sep 20, 2008 11:01 am Post subject: Business license? |
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Went to go get a business checking account from the local credit union. They said I needed a business license to open a business account. Filled out the form online to get a business license, paid my $70 bucks and now I have to fill out all kinds of goofy paperwork, including providing a floorplan of my house where the "business" will be located. Wonder what they'll say when they find that my 20x20 closet is my business space.
Then my wife brings up a good point. When you get a business licesne to run a business out of your home, do you usually pay more taxes, like a business? Do insurance companies jack up rates?
And really, what do *I* get out of having a business license? Is it worth doing?
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Jeff
http://JeffreyKafer.com
Voice-overload Web comic: http://voice-overload.com |
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Lizden
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Joined: 04 Dec 2006
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Location: The dark recesses of my mind
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| Posted: Sat Sep 20, 2008 11:56 am Post subject: |
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I registered my business and pay taxes as a sole prorietor (everything goes through my SSN).
I opened a biz checking account @ my CU with no problem...never had to provide any floor plan.
L.
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Jeffrey Kafer
Assistant Zookeeper
Joined: 09 Dec 2006
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Location: Location, Location!
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Frank F
Fat, Old, and Sassy
Joined: 10 Nov 2004
Posts: 4421
Location: Park City, Utah
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| Posted: Sat Sep 20, 2008 1:58 pm Post subject: |
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You will get a break on taxes - your personal taxes. However, you will pay taxes for the business, considering you do not use the space your business requires for anything BUT business.
To be sure of what you can and cannot do consider finding a GOOD accountant. The advice will be worth the dollars spent.
Are you doing an LLC? A corporation? Or, a DBA? Each type of business entity has it's own value and problems. You need to consider what the type of business entity will work best for you in terms of liability, protection of assets, taxes, etc. Are you likely to be sued by a client? More reasons why finding a GOOD accountant can be valuable.
Toodles
F2
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ccpetersen
With a Side of Awesome
Joined: 19 Sep 2007
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| Posted: Sat Sep 20, 2008 2:14 pm Post subject: |
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Frank's right. There are SO many variables about how this works. We recently went from being sole proprietorship to sub-s corporation, but that's specific to our needs. You really should talk to an accountant (it doesn't need to cost an arm and a leg to do this -- our accountant gave us an hour free consult and the second hour was $150, but it was worth well more than that...
good luck!
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Jeffrey Kafer
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RickReid
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| Posted: Sat Sep 20, 2008 9:08 pm Post subject: |
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| I opened a business checking account as a sole proprietor here in Colorado and just had to register my business name ("doing business as...") for $1. The bank employee registered it for me right there on her computer. I think a business license would apply if you had customers coming into your home studio, were storing and selling retail products, were collecting sales tax on purchases, etc. |
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Jeffrey Kafer
Assistant Zookeeper
Joined: 09 Dec 2006
Posts: 4931
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| Posted: Sat Sep 20, 2008 10:28 pm Post subject: |
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I went into the CU and they said they needed my business license.
I'm tempted to just open a personal account and have my customers make the checks out to me (as opposed to "Jeffrey Kafer Voice overs"). It really seems silly to jump through all these hoops when I get zero gain from it.
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Jeff
http://JeffreyKafer.com
Voice-overload Web comic: http://voice-overload.com |
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Frank F
Fat, Old, and Sassy
Joined: 10 Nov 2004
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Location: Park City, Utah
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| Posted: Sun Sep 21, 2008 12:25 am Post subject: |
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JK,
Are you doing a DBA (Sole Proprietorship)? If so, then you assume liability for your business. Are you willing to accept that responsibility? If your "business" as a DBA gets sued, you could lose everything you own.
Limited Liability Corporations give you some (as the name implies) limited relief. S, C, and other Corporation's; more relief.
O.K., you are going to ask; "what could I (and my Voice Over business) be liable for"? Let's look at another way, what if an advertisement you have voiced is found to defame someone, or maliciously hurts someone? You may be named in a liability lawsuit for damages and as a Sole Proprietor you, your business, and your family members are responsible. You could lose everything you and your family own.
It would be a wise investment in your business to set your "home business" up properly to protect those you love. A few dollars and a couple hours of your time could be worth more than you will ever realize.
There are other benefits when you set up a home based business, the space you use (if the rules are applied properly) can be tax deductible. Any item you buy for your studio/business can be taxed differently and you may apply for a Federal Tax I.D. number which may give you relief from taxes when you buy merchandise. There are a lot of benefits available and you should explore them with a good accountant.
Also, naming your business with your Christian name as part of the D.B.A. is not always a good idea. Again, a GOOD accountant can help you decide the reality of your needs and wants.
Good luck, my friend.
Toodles
F2
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Be thankful for the bad things in life. They opened your eyes to the good things you weren't paying attention to before. email: thevoice@usa.com |
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Moe Egan
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Joined: 11 Sep 2006
Posts: 4339
Location: Live Free or Die
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| Posted: Sun Sep 21, 2008 4:27 am Post subject: |
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| Frank F wrote: |
Also, naming your business with your Christian name as part of the D.B.A. is not always a good idea.
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Why is that Frank? I've never heard that before. I'm still doing business as a Sole Proprietorship....which I know is a bit of a crap shoot (plus self employement taxes KILL ME every year), but I've never heard that it's a bad idea to use your name as your business name. Please to enlighten us Double F 
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Moe Egan
i want to be the voice in your head.
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Frank F
Fat, Old, and Sassy
Joined: 10 Nov 2004
Posts: 4421
Location: Park City, Utah
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| Posted: Sun Sep 21, 2008 5:35 am Post subject: |
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| Quote: | I wrote: Also, naming your business with your Christian name as part of the D.B.A. is not always a good idea.
Moe Egan questions: "I've never heard that it's a bad idea to use your name as your business name. Please to enlighten us Double F". |
Again, this goes to liability. Your reputation, your business, your name; hinge on your actions and deeds. If one of these items is besmirched, the other items (yes there a lot more) go down with the other.
Think about it. In our world we are, for the most part, a one-man/woman-band we don the hat of bookkeeper, marketer, public relations, interior legal, garbage person, receptionist, chief cook and bottle washer, etc. The VO artists reputation is on the line with everything he or she does and says in both private and public life. We are our brand and our image.
By giving your brand a third-party image, you grow your business. You also have the luxury of saying "Send your bill to Accounts Payable" instead of saying "Oh, just send the bill to me". With a third-party name one takes liability off of the individual and allows the image of your small company to grow as a larger business.
Not to get too personal here but as an example, my ex-spouse during a rough time at the end of our relationship, began calling my clients on the telephone or visiting them and telling tall stories about me personally (this is one of the reasons she is my EX-spouse). My reputation began to suffer and so did my business. My income suffered not as a result of the stories of my then soon-to-be-former-spouse, but because my customers did not want to be involved.
By creating the third party entity or DBA, I salvaged what was left of my personal image and began to develop and promote the enterprise. My clients and customers began to work with my larger-than-life persona because I was now working as a new presence in the market. I also grew my business by offering additional contracted services from other one-man/woman-shops and created a unique reputation for quality and service. My income potential increased as did my brand image. All of this happened despite the rumors spread by my former spouse.
Changing the name of your business entity away from your given or Christian name can make a big difference in your careers future.
I hope my explanation is satisfactory.
Toodles
F2
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Be thankful for the bad things in life. They opened your eyes to the good things you weren't paying attention to before. email: thevoice@usa.com |
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ccpetersen
With a Side of Awesome
Joined: 19 Sep 2007
Posts: 3708
Location: In Coherent
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| Posted: Sun Sep 21, 2008 6:23 am Post subject: |
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Frank makes very good points here; particularly about a business name. I was a dba under a variant of my own name for a number of years and it worked well for me. I was able to deduct home office expenses, travel (related to my work), etc. I folded it all into a larger corp at the end of last year, under a different name, largely for the self-employment tax reasons that Moe mentioned, the liability reasons that Frank mentioned, and for others relating to some new avenues of business my husband and I are pursuing.
It does cost a few bucks to iincorporate, but it is worth it for just those reasons alone.
Your FIL can advise you on all this Jeffrey.
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melissa eX
MMD
Joined: 20 Oct 2007
Posts: 2794
Location: Lower Manhattan, New Amsterdam, the original NYC
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| Posted: Sun Sep 21, 2008 6:30 am Post subject: |
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| Quote: | | Wonder what they'll say when they find that my 20x20 closet is my business space. |
You have a 20x20 foot closet? Do you have any idea how many SHOES I could fit in there?
In all seriousness, an LLC will shield you from liability generally (although nothing is foolproof). Whatever you do you should get an EIN. That way you don't have to give out your SS# to anyone and everyone who pays you more than $600. |
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Moe Egan
4 Large
Joined: 11 Sep 2006
Posts: 4339
Location: Live Free or Die
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| Posted: Sun Sep 21, 2008 7:35 am Post subject: |
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Or you could get a tax ID # too, right? Rather than give out a SS # you can give out a Tax ID # (yet another thing on the "gee, I really should get my act together and do that" list).
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Moe Egan
i want to be the voice in your head.
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bobsouer
Frequent Flyer
Joined: 15 Jul 2006
Posts: 9883
Location: Pittsburgh, PA
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| Posted: Sun Sep 21, 2008 7:43 am Post subject: |
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Moe,
An EIN is a Tax ID number. 
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Bob Souer (just think of lemons)
The second nicest guy in voiceover.
+1-724-613-2749
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