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06/21/2007 10:23:21 PM · #1 |
If I put an ad in the local high school year book do I need to get a buisness license? Right now, what I have it barely a self-supporting hobby. I would like to be able to afford more equipment, but there's all kinds of tax issues once you've got a license. I would hate to start paying taxes on my equipment and end up not making any money. LOL! Not to mention, what happens if I change my mind? Do they make me sell my equipment? Do I still have to pay taxes on it anyway? What if I move to another part of the state?
Not to mention if the buisness should take off, it would make it that much harder to move later. My boyfriend lives five hours away, and wants me to move. |
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06/21/2007 10:31:08 PM · #2 |
| You wouldn't be paying taxes on your equipment. If you change your mind you'll have to fill out a form to dissolve the business and pay out any taxes you owe. No, you won't have to sell your equipment. You didn't have to pay taxes on it in the first place. If you move you'll have to get a new license from the county you move to and update your information with the state and fed tax authorities. |
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06/21/2007 10:33:19 PM · #3 |
I assume you live in the US?
I toyed with the idea of getting a license here in Washington, but gave up again rather quickly. I live within a few minutes drive of several "cities", and found out that I would need to pay a yearly license (the amounts vary) to each and every place where I would be taking photos or conducting business.
I'd have to make a ton of money to be able to afford just the licenses :-(
Edited to add: I would also need to get a Washington State license, as well as the individual other ones.
Message edited by author 2007-06-21 22:34:20. |
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06/21/2007 10:39:56 PM · #4 |
Originally posted by TechnoShroom:
You wouldn't be paying taxes on your equipment. If you change your mind you'll have to fill out a form to dissolve the business and pay out any taxes you owe. No, you won't have to sell your equipment. You didn't have to pay taxes on it in the first place. If you move you'll have to get a new license from the county you move to and update your information with the state and fed tax authorities. |
When I talked to the Commissioner of the Revenue today, they said they would tax me on my equipment. 2.89 per $100 of value. I THINK I only have to have a license for where my base address is because most photographers around here travel. |
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06/22/2007 04:12:44 AM · #5 |
| Hopefully that 5 hour move will place you in a less oppressive tax area. They don't collect taxes from businesses with less than $100,000 in personal property here and even then the tax rate is 1%. |
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06/22/2007 05:18:00 AM · #6 |
seriously, stop complaining, :D here in the last socialist outpost(Sweden) I have to pay 55% tax and 25%vat on everything I make.
Message edited by author 2007-06-22 05:23:21. |
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06/22/2007 08:25:46 AM · #7 |
Ask your local government as each area is different.
I am in PA and if the biz is my name then I don't need a DBA (Doing Business As) on file with the state, but I do need to have a sales tax license (free, online).
My county has no business license, at least not for photographers.
My local municipality does for home-based businesses, $25 a year.
The problem with not having a license or collecting sales tax, besides it's wrong/illegal, is once you start advertising you are asking to be checked up on - be it by just some nosy person, a fearful competitor, or your local gov't official.
For some things it may be easier to ask forgiveness than permission, but you don't want to risk fines, inspections, etc that may come with suspected violations.
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06/22/2007 10:08:13 AM · #8 |
Originally posted by ragamuffingirl:
If I put an ad in the local high school year book do I need to get a buisness license? Right now, what I have it barely a self-supporting hobby. I would like to be able to afford more equipment, but there's all kinds of tax issues once you've got a license. I would hate to start paying taxes on my equipment and end up not making any money. LOL! Not to mention, what happens if I change my mind? Do they make me sell my equipment? Do I still have to pay taxes on it anyway? What if I move to another part of the state?
Not to mention if the buisness should take off, it would make it that much harder to move later. My boyfriend lives five hours away, and wants me to move. |
Actually, if you capitalize your equipment, the annual depreciation on it becomes a tax deduction, not a liability. That goes for any equipment you buy; computers, lenses, lights etc.
My advice is to look for local resources that specialize in helping entrepeneurs start businesses. Usually, these resources are free and more than willing to help you in any way they can. Start with your local SBA. You can probably speak with an advisor who will know all of the local, state and federal ins and outs of whatever it is you want to do. |
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06/22/2007 10:19:13 AM · #9 |
I agree, I've lived in numerous places around the world and by far the USA has lower taxes with more benefits, better recreation and a higher standard of living. This is overall and general, of course there are wealthy and poor in every country. This absolutely not a put down to any nation or it is not putting the US as better than any of your countries. A simple look at things like the cost of photographic gear in US cmpared to almost anywhere, cheaper after taxes here..
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I look at it as the more taxes I pay the happier I am ... that means I made more money ;).
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Have you gone on-line and looked at registering your company as a Nevada LLC or Delaware LLC. That avoids some of the local state restrictions especially if you are thinking of moving. ...Best of luck.
Originally posted by xantangummi:
seriously, stop complaining, :D here in the last socialist outpost(Sweden) I have to pay 55% tax and 25%vat on everything I make. |
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06/22/2007 10:29:24 AM · #10 |
Originally posted by ragamuffingirl:
Originally posted by TechnoShroom:
You wouldn't be paying taxes on your equipment. If you change your mind you'll have to fill out a form to dissolve the business and pay out any taxes you owe. No, you won't have to sell your equipment. You didn't have to pay taxes on it in the first place. If you move you'll have to get a new license from the county you move to and update your information with the state and fed tax authorities. |
When I talked to the Commissioner of the Revenue today, they said they would tax me on my equipment. 2.89 per $100 of value. I THINK I only have to have a license for where my base address is because most photographers around here travel. |
In Missouri the only time you would be taxed on your equipment is if it's insurable property. Meaning if I take a policy out on my equipment then I must pay property taxes on it. |
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06/22/2007 12:04:01 PM · #11 |
Originally posted by angelfire:
Originally posted by ragamuffingirl:
Originally posted by TechnoShroom:
You wouldn't be paying taxes on your equipment. If you change your mind you'll have to fill out a form to dissolve the business and pay out any taxes you owe. No, you won't have to sell your equipment. You didn't have to pay taxes on it in the first place. If you move you'll have to get a new license from the county you move to and update your information with the state and fed tax authorities. |
When I talked to the Commissioner of the Revenue today, they said they would tax me on my equipment. 2.89 per $100 of value. I THINK I only have to have a license for where my base address is because most photographers around here travel. |
In Missouri the only time you would be taxed on your equipment is if it's insurable property. Meaning if I take a policy out on my equipment then I must pay property taxes on it. |
If you are working as a photographer, you should have insurance. Probably on your gear, definitely for liability. All it would take would be one lawsuit to financially ruin you and your family. Even if you won, you'd still be out thousands in legal fees. |
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06/22/2007 02:13:01 PM · #12 |
Originally posted by Spazmo99:
Originally posted by ragamuffingirl:
If I put an ad in the local high school year book do I need to get a buisness license? Right now, what I have it barely a self-supporting hobby. I would like to be able to afford more equipment, but there's all kinds of tax issues once you've got a license. I would hate to start paying taxes on my equipment and end up not making any money. LOL! Not to mention, what happens if I change my mind? Do they make me sell my equipment? Do I still have to pay taxes on it anyway? What if I move to another part of the state?
Not to mention if the buisness should take off, it would make it that much harder to move later. My boyfriend lives five hours away, and wants me to move. |
Actually, if you capitalize your equipment, the annual depreciation on it becomes a tax deduction, not a liability. That goes for any equipment you buy; computers, lenses, lights etc.
My advice is to look for local resources that specialize in helping entrepeneurs start businesses. Usually, these resources are free and more than willing to help you in any way they can. Start with your local SBA. You can probably speak with an advisor who will know all of the local, state and federal ins and outs of whatever it is you want to do. |
Another place to check is the Business School at any near by college or university. The will often have programs that help out with starting small businesses from the business licensing to business plans and other spects of running a business. This is usally a free service. They also team up with the SBA and county Chambers of Commerce to bring the public this service so you may want to contact them as well.
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06/22/2007 03:00:09 PM · #13 |
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06/22/2007 03:16:09 PM · #14 |
Originally posted by ragamuffingirl:
What's SBA? |
Small Business Administration |
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