# paperwork required for business



## mziem (Apr 26, 2009)

At the risk of writing a totally redundant post, here it goes. I want to start a part-time woodworking business. All of my searching on the subject showed me what to build, how to get customers, how to advertise, etc…not what I'm looking for.

I need to know what forms to fill out so I can write off the shop, depreciate the machines, file taxes etc…the boring paperwork stuff. I figured the best people to ask would be the most awesome woodworkers in the world…YOU.

Thanks in advance.
Mike


----------



## craftsman on the lake (Dec 27, 2008)

you may be right about these guys being the best people to ask but when I do stuff like this, i.e. I rent a house, run a small business on the side, etc. I contact the guy who's done my taxes for several years. It's good to have a tax guy, maybe from a small agency who's always there for questions. He sees it all so he knows.
I do know that I you save everything. So much is deductible. Catagorize it and pass it on during tax time.


----------



## TMarko (Jan 11, 2008)

Second the accountant vote!

When I started my business, I went to an accountant to "set up" my books and tell me what I needed to save and where to put it. Mine was set up for use in quickbooks, but there are others out there.

After the first year, I took everything back to him and had him show me how he was doing my tax reporting. Since then I have used turbo-tax for my taxes, but still have him check it over before filing.

It's worked well so far.

The cost is small when compared to the potential problems caused by an "innocent mistake". (The IRS doesn't see it that way!)


----------



## reggiek (Jun 12, 2009)

I second the second above.

There is also a publication by the IRS for small businesses or you can look at their web page www.irs.gov.

The first issue you may have is what form of business (Corporation, LLC, Partnership or Sole Proprietor). If you have significant assets to protect (house, land, retirement…etc) you may want to inquire about incorporating (you can do a search on business types to see what would work for you).

Depending on what name you want to use, you may need to file a fictitious name with the county (check with your local chamber of commerce…they can help you out with all that - or your county administrative office). There may also be a local business license required (there is none for the state - unless you will be doing contracting (if you effect the physical home or property (i.e. remodeling…putting in windows…doors…) you will need to be licensed as a contractor unless you only want to do jobs under $500.00.

The only other items are insurance (get a general liability policy at minimum). Sales tax number (from your state sales tax office)...if you are going to hire employees…you need to get an employer ID from the IRS and from your State Board of Employment.

I think Todd Clippinger did a blog answer about using the SBA and other issues on another similar question…he would be a great resource…try sending him a PM.


----------



## a1Jim (Aug 9, 2008)

ahh heck That seems the way to go .Talk to the tax folks.


----------



## mziem (Apr 26, 2009)

Thanks guys…YOU ARE AWESOME. This is exactly the info I was looking for. I knew I could count on y'all


----------



## jeffthewoodwacker (Dec 26, 2007)

Go see your insurance man first. You will need a general liability insurance policy (reggiek recommended this), a bond insurance policy and a personal liability policy. I would recommend at least a $3,000,000 policy, but talk to your insurance man. Check out all the tax permits you need. Where I am you have to have a city, county and state tax permit. Invest in a pay pal account and get set up to take credit cards. Once I started taking credit cards my business increased 50% - some folks just don't like to give cash or checks.


----------



## TopamaxSurvivor (May 2, 2008)

It's really not hard to keep track of all your expenses and create a profit and loss statement. If you are a LLc it goes on your personal 1040. If you are incorporated, you need to file a seperate 1040 for the corp. You can apply for Sub S status with the IRS, then your corp will never pay any taxes, they pass through to your personal 1040, but you still have to file both. LLC or sole properitorship, yoi only have to file one 1040.

If yoiu have employees, there are a multitude of rules, regs and deadlines ready to bite you in the rearend!! it's not hard, yoiu just need to be aware of them. You normally get frogiven by the fedes for your first violation, but the second will cost $$$ :-((

Good luck.


----------



## rustfever (May 3, 2009)

You should obtain the services of an advocate. We did so some 35 years ago and have never regreted the move. We use the California Association of Employers. They keep us up-to-date with the multitude of laws that may effect us. They helped us in our health insurance, minority policy, safety program, workers comp insurance, Illness & Injury Prevention Program, etc. [In our industry, I need each of these item, even without employeeing others]

They have also been an advisor for the several employee/employer legal action. They have always be quick to respond and very much 'Dead On' with their knowledge and advice.


----------



## jockmike2 (Oct 10, 2006)

HGTV PRO has a lot of the forms you might need to run a business, like keeping track of your hours and your emloyees hours, keeping track of every thing. Worth checking out. Even has calculators for figuring cement amounts and how much roofing you need or tile for a job. Just a lot of good info.


----------

