Creative Act Plan = Business Plan Part 3 (Structures and Taxes)

Business Structures:

Sole Proprietorship:

all profits earned belong to the owner, impact their personal taxes. The owner holds all liability.

Partnership:

Coorperation: Coorp. is taxed, then distribuition to owners is taxed as income. No personal liability.

Limited: Taxed as partnership.

 

Taxes:

Self employment tax: social security for those who are self employed.  

Sales Tax: depends on state. collected at each transaction, paid monthly or quarterly.

EIN: federal employer identification number (social security for the company because of employess)

Sales and use tax: registration so you can not be taxed on supplies for the business.

 

How to set these up:

Vary by the city and state

Get a DBA (Doing Business As) form to the state

Registration fee: $100- 41000 (Depends on state)

Notarize the forms, submit to the state business office

 

< It may be helpful to have an accountant nad /or lawyer the first 6-12 months>

~ by fireseedmillie on March 10, 2009.