[olug] Part-time Self Employment (Side Jobs)

[Eric Penne]

What about Sales TAX?  If I buy a product and pay sales tax on it then
resell the product to my client do I need to charges sales tax on that
item again?

> I used to run a consulting company, and this part gets a little
> tricky...
>
> If you are doing a DBA, you need to register for a Tax ID number UNLESS
> you're using your name in the business name (as Robert mentioned below),
> and you're income is limited to $1 million IIRC.  Unfortunately, that
> limit was NEVER a problem for me.  Any business you conduct will be
> under your Social Security Number, which is why your assets and the
> company's assets will be lumped together in the event of a legal matter.
>
>
> Your chamber of commerce will have plenty of information on the
> advantages and disadvantages between Corp, LLC, and Sole Proprietorship
> (I may have brought that up already), as well as business startup plans,
> marketing information, financial requirements, and sources of local
> startup guidance.
>
> However, IANAL[0] and the information above was what I was given in 1996
> or so.
>
>
>
> [0] I Am Not A Lawyer
>
> -----Original Message-----
> From: Jacobs, Robert A. [mailto:RAJACOBS at northropgrumman.com]
> Sent: Tue 4/22/2003 5:26 PM
> To: Omaha Linux User Group
> Cc:
> Subject: RE: [olug] Part-time Self Employment (Side Jobs)
>
>
>
>
>>Do you have to register yourself as a business with the state
>>or anything?
>>
>
> No.  You do not.
>
> ...but there are advantages to getting a business license.
>
> If you do not get a business license, you are automatically
> considered a "DBA" (Doing Business As) business
> (e.g. Eric Penne d.b.a. Eric Penne's Consulting).
>
> The implications are: if somebody sues you, there is no
> difference between your personal assets and the assets of
> your company in the eyes of the law.
>
> If you incorporate (fees vary), you have some higher
> requirements on running your business but your personal
> assets are protected.  There are other business options
> available (LLC -- Limited Liability Corporation, etc.).
>
> The "Portable MBA in Finance & Accounting" is an EXCELLENT book to  have
> on hand (I HATE accounting courses but I kept this
> book from a graduate course in managerial accounting I had to
> take just because it had such a good overview of accounting practices).
>
> As one poster pointed out, check out SCOREs -- they'll be
> able to provide you with a ton of good information and explain
> the different options to you.
>
> Rob
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