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I've been doing some work from home, getting paid for small jobs here and there, like Wedding & Graduation Invites, Business Card & Client Folder for a bookkeeping business. For cash!
I'm an at home mother & wife with MS. I would like to consider printing some business of my own & continue doing graphic freelance from my home.
But I have one big question for you freelancers!
The income that I earn from freelance jobs, can I just claim that income at the end of the year. (I might only get a few jobs a year)
Or do I have to get a Business ID#, if so how much is a Business ID#?
:confused:
729
Yes, you only need to do your claims at the end of the year, but yes, you also need to have a business license. Just a small business license will do. How much that costs varies a lot depending on where you're at. Most cities only charge like $30 or $50 a year for it, but my city charges a whopping $400!! (they charge about $200/a for the license itself, then they tack on another $200 through $50 quarterly "business taxes" which other cities don't do.) Ugh, I can't wait to get out of this God-forsaken Socialist country (I live in Canada).
Anyways, it shouldn't cost you much, if you're in a "normal" American city. :)
MikeHun
10-27-2008, 09:19 PM
Been dealing with Bureaucrats NED? Yes I find that we are excessively taxed in Canada.
Yeah, I can't stand it, Mike. :( I lived the early part of my adult life in the U.S., and the freedom there compared with Canada is immeasurable. I wish we could adopt a Capitalist economic system here.
They do everything in their power here to keep businesses in check and under their thumb, so that small businesses never grow. Not to mention our lifestyle in general.
MikeHun
10-29-2008, 12:12 PM
The Financial meltdown and credit crunch is indicative of the bad aspects about the USA.
The excessive taxation and meddling in small business is a detriment to us in Canada.
It seems Canadian politicians regardless of party politics don't want to disturb the status quo, even the conservative party ( USA republican equivalent ) that was just voted in spends a lot and business friendly, go figure.
Canada will come out of the current economic crisis the best of all the industrialized countries. So there are Pro's and Con's to the Great white north.
I was in a crash on my bike this summer and I didn't owe a penny to the hospital. My friend in Binghamton NY USA wasn't so lucky with a fractured arm, he's still on the hook for a couple grand.
Steve Buchanan
10-30-2008, 10:09 PM
The short answer is ask your accountant. Licensing and reporting laws, rules and regulations vary depending on where you live. Your local CPA will know what's going on and point you in the right direction. If you don't already have one, ask the other small businesses in your area, (ie, the little printer on the corner, the gas station, the florist, etc.)
If you're going to make a go at this and make money it's a great idea to have your team in place. An accountant, an attorney and an insurance agent can save you countless headaches as things move on.
Good advice, Steve. ^_^
@ Mike: Yeah, there's definitely pros and cons. But as far as the healthcare is concerned, too many Americans don't think about buying their own health insurance. Considering how much lower the cost of living is there, with even higher wages in most places, they could pay into personal health care with a fraction of what we pay in our mandatory taxes. At least they have a choice of where to spend their money...
vtwin_gary
10-31-2008, 03:13 AM
my business lic. is $27 a year.
Yeah, I've heard $25, $30, $45... I think $45 or $50 is the highest of any others I've heard of outside of where I live. About $380/mo is simply unheard of anywhere else. I still have no idea how this city can conduct themselves the way they do, and why they still wonder why business is always in a slump here?
stickleback
10-31-2008, 05:39 PM
come to Spain - here if you want to work freelance you have to pay 330 euros A MONTH! to be in business....
Thanks for the info. my fellow freelancers!
My mother owns (with a business partner) 2 H&R Block offices & She owns a Bookkeeping business herself. But my mother & I both didn't know much about the freelance world. So some of you Canadians might be frustrated with this answer (ouch, you pay a lot!) but...
In WI anyway, as long as you don't have any venders you can run a small business by using your SS# instead of paying for a small business ID#.
In WI it is $25.00 for an small business ID# if you do have vendors.
Income from small business does need to be claimed at the end of the year using an additional form (forget the name of the form). Because I wanted to still try to write off programs & equipment when needed. I guess I still can write off business expenses as well on this additional form she mentioned.
Steve, your making me wonder if I want to get into freelance at all?! lol
"an attorney and an insurance agent can save you countless headaches as things move on."
729
artistsdad
10-31-2008, 10:02 PM
Just to jump in a second, I made my daughter go to a tax guy in Tulsa sinced she's been doing free-lance stuff. In some states you can consider it a "hobby" up to a certain income amount. Keep all your recipts, and all that.
And good luck with the MS. My wife was diagnosed 14 years ago. There's so many more treatments available today. Don't let it get you down.
come to Spain - here if you want to work freelance you have to pay 330 euros A MONTH! to be in business....
Ouch!!! Thanks for letting me know it could be worse!! :eek:
Just to jump in a second, I made my daughter go to a tax guy in Tulsa sinced she's been doing free-lance stuff. In some states you can consider it a "hobby" up to a certain income amount. Keep all your recipts, and all that.
And good luck with the MS. My wife was diagnosed 14 years ago. There's so many more treatments available today. Don't let it get you down.
Thanks Artistdad! :D