You’re a business owner if you’re exchanging goods and services for payments. Even if the business is small and done at home, you should still do the required paperwork because it can save you from the IRS.
By definition, sole proprietorship is “someone who owns an unincorporated business by himself or herself.” Setting up a sole proprietorship is simple, but may require you to call your local City Hall. Once your sole proprietorship is set up, you will receive a tax ID number that will be useful when it comes to invoicing clients. Usually, if you run a sole proprietorship or an LLC with no employees, you can use your social security number. However, it’s best to just use your tax ID number so that you don’t have to expose your SSN all the time.
During the early stages of your business, it’s also important to engage with an accountant. Consulting with an accountant will help with tracking income and expenses. What you can deduct and depreciate is good information to know from the accountant.
If you find yourself in need of advice please call Blue Chip Accounting, LLC at (702) 625-6406 or email info@consultbc.com
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