How do you know if you have to register your home business?
@just2crazygirlz (2479)
United States
February 9, 2008 9:33pm CST
I recently started this home travel business. I have not registered it with the court house or wherever you do that. I don't know if I have to. I live in Illinois. Does it go by state? I know that my friend who brought me into this business doesn't have to register in her state. I have been saving receipts so that I can file long form next year with taxes and claim all of this business related stuff. I don't know how to find out if I have to register or not though. Does anyone know?
2 responses
@dovinea (80)
• United States
10 Feb 08
If it like Missouri, it will depend on what name you're running your business under. If YOUR name is included in the business name, you can file taxes just like an individual (under your social) and that is legal, you don't need to register a "business name" with the state. Since you're probably home-based, you wouldn't need a city retail license either. And as far as county goes, I have had several businesses (all retail/commercial locations) and never had to mess with the county.
As long as you don't charge a sales tax (which I doubt you do on travel packages) you won't have to do quarterly payments.
So, in short, you shouldn't have to worry about a thing!
1 person likes this
@just2crazygirlz (2479)
• United States
10 Feb 08
Thanks that is some great info. I am using a business name, but I am also using my name. Does that make sense? My business is listed under my name online.
@dovinea (80)
• United States
10 Feb 08
If payment is made to you personally, you'll be fine. It's when you start a business account and start rec. payments in your business name (dba) that you could get into some legal issues. So, as long as YOU rec. payment, you're all good. The problem arises when anyone who pays you sends you a 1099 (tax form). If a 1099 has a business name on it, you now have to be registered with the state, if not, it's no different than getting a check (in your name) for your birthday!!
1 person likes this
@just2crazygirlz (2479)
• United States
15 Feb 08
Thanks so much! What if you want to report the income though? Does it still apply for that? I want to be able to do deductions with all the stuff I spend on my biz.
@missmoneylove (105)
• United States
14 Feb 08
You need to call the state dept of treasury or small business association. They will tell you wether or not you have to register. Good luck!
1 person likes this
