Registering as a business (for real this time!)

[Joogaler]

You guys (and girls) might remember my last post about this.

viewtopic.php?f=7&t=995&start=0&hilit=registering+a+business

This will be so I can order, and dump at my bank. I also will be selling my pennies. Not too worried about the whole tax thing, because I can probably write off most of everything I sell.

These are my questions.

What would I list my business type as? Coin dealer? Bullion dealer?

I would be registering as a sole proprietor, is there anything else I need to know about doing this?

Also I have no ideas on a business name! You guys got any idea's on that, that I can steal from you?

Any other advice would be greatly appreciated!

Thanks,

Andrew

*edit*

I just looked at the actual form

http://www.nccommerce.com/NR/rdonlyres/ ... p_p_lp.pdf

And It looks like I won't have to list a type of business.

Any help on what I'll need for a tax ID number though?

[justoneguy]

i am a sole proprieter and don't have a tax id #
they just use my SS#

[Kurr]

Your SS# is your tax id#. That is the whole purpose of it. Once you have one, you are a voluntary taxpayer.

Social Security Number (SSN) and Individual Taxpayer Identification Number (ITIN)
General Information
Foreign national individuals, both resident aliens and nonresident aliens, may have either a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN)


A Social Security Number (SSN) is:

A nine-digit number assigned by the Social Security Administration to an individual for tax and wage reporting purposes

An Individual Taxpayer Identification Number (ITIN) is:

A nine-digit number assigned to an individual who is required to have a tax identification number, but who cannot obtain a Social Security Number


The ITIN is for tax reporting purposes only
NOTE: A nonresident alien who wishes to claim exemption from tax withholding under a tax treaty MUST have a SSN or ITIN

[Joogaler]

Ok that's what I figured. I just really don't know a whole lot when It comes to going by the books on businesses, taxes etc.

[exbingoaddict]

Joogaler,

Are you creating a fictitious name (doing business as or d/b/a) sole prop just to open a business account with a bank(s)?

The first thing to keep in mind is tax liability. The IRS and the State may start hounding you looking for tax dollars. Believe it or not but the IRS is much more straight forward then dealing with some States. Frankly the IRS probably won't pay much attention to your dealings. The State could be another matter (never dealt with NC before). So look into what State and Local taxes you could be opening yourself to before you plunge to far.

As for the IRS. For sole props, you may file a schedule C along with a 1040 return. However, if you show losses year after year, the IRS may invoke the hobby loss rule. Claiming that you have no profit motive and only using your hobby to offset taxes from other income.

I'm not saying you should or should not go the business route. Just giving you a heads up of what could happen. Feel free to PM me if you need some help. As with all legal and tax matters. Take anything with a salt shaker and consult your own legal and/or tax advisor.

[Dr. Cadmium]

Talk to a certified public accountant in your state. That is the single best piece of advice you'll get on an internet forum regarding this topic.

As mentioned, tax laws very greatly by state to state and they'll have the best knowledge to help you out. They may have even helped other customers who have businesses for the same reason.

The federal government and many states aggressively audit small businesses that report low yearly earnings (usually around the $20K mark) because they assume their owners are seriously underreporting or using their "business" just to avoid paying personal taxes.

I run my own business, and personally I would not go through the aggravation of all the licenses, taxes, accounting and paperwork just to support a coin hobby. Instead, I would spend the time and money finding better a better bank.

[Joogaler]

I've tried the other banks around here and they want the same thing, but they want to charge more ordering fee's. One bank requires a business account, and wants $.10 a roll! That's $10 for every $100 I order! Which now I'm up to $800-$1000 a week.

[highroller4321]

Unless you are doing volume and have inside connections its hard to justify the cost to start, manage, and run a business.

[Joogaler]

Unless you are doing volume and have inside connections its hard to justify the cost to start, manage, and run a business.

How much would you estimate you pay in tax per $100 FV you sell in copper?