[757labs] Starting a business

[Jerry Winchel]

Right now Norfolk charges a base $50 fee for the license and if you also file a DBA there is a small separate fee ($15 for the last one I filed).  The $50 part is per business category.  i.e. if you tell them you are running a consulting business it is $50, if you tell them you are going to be consulting AND doing repair work it's $100.

The "home based business" has some other rules as well.  The city clerk will have the most up to date info, but they basically boil down to not having customers come to your house and no manufacturing.  The second year the fee is based upon your income.  You will also be taxed on your business assets including a portion of your car if you own it.

The sole prop schedule C vs sole prop LLC vs Partnership LLC vs S-corp debate is a bit tricky and depends on projected income vs losses and weather you talk to an accountant, lawyer or tax professional.

My friend Anthony has been to the lab a couple of times and is a Tax Professional.  I can pretty much guarantee that he would love to consult with any lab member (or non member) after April 15th.  He does this stuff every day and also has some inexpensive lawyers on call for the bits that sometimes require them.

Advice I can give regardless of corporate structure:
Keep every receipt for everything that you buy except groceries.
Keep every utility bill you get.
Get a copy of Quickbooks and learn to use it.
Write down ALL of your milage in a paper logbook.
Sock away at least of 20% of your income from the business to cover SE tax.
If your records are digital; BACK UP DAILY

On Mar 31, 2012, at 10:39 AM, James Blandford wrote:

> Well I would essentially be running it from my house, making appointments in others houses. Would that still qualify?
> 
> On Mar 31, 2012 10:32 AM, "Scott Dorsey" <kludge at panix.com> wrote:
> I've been running a remote audio recording business in Williamsburg for
> a couple of years, and starting the business side is the easy part.
> 
> In Williamsburg, if you want to run a business out of your own home and
> you don't want to incorporate, you go to the city clerk and ask for a
> business license.  If you are making under $5k/year there is no cost for
> the license, above that it's calculated based on your gross.  The clerk
> will also show you how to apply for a zoning variance that will allow you
> to operate a business from your home.  Getting the variance takes about
> two weeks since the zoning board has to sign off on it, it doesn't cost
> anything, and the only question anyone will ask you is if you're running
> a hair salon.  Apparently home hair salons have been a problem in the
> past.
> 
> You may want to incorporate in order to deal with liability issues.  If so,
> Nolo Press has some inexpensive kits to create an LLC or an S corporation.
> 
> You may also want to register your business name and logo as trademarks
> with the patent office.  www.uspto.gov has directions on doing this; I
> found it a pain in the neck but better than having my name knocked off.
> --scott
> 
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