Starting a business questions...

**Walley** · Oct 17th, 2007, 12:32 PM

How do I file for taxes for my business at begining of the year?

If I decide to quit my business can I just simply quit?

If I go with sole proprietor can I simply change it to llc later?

What happens if I move to a different county or state..do I have to reregister it?

**Nate** · Oct 17th, 2007, 01:19 PM

You definitely can't just quit... I tried that once and got stuck with penalties and interest on the penalties. Maybe there was even interest on the interest... I don't know.

**lucas** · Oct 18th, 2007, 01:33 PM

How you file taxes depends on which entity type your business is (sole proprietorship, llc, s-corp, c-corp, etc).

If you decide to shut down your business you will have to notify the state you live in (usually the secretary of state) as well as the IRS. There are specific documents you have to file.

Once a business entity selection is made, you can't change it. You have to make a new company and dissolve the old one to change your entity type.

If you move to a different county it's no big deal, but if you move to a different state it's different. You can either register the company to operate in the new state (as a foreign business), or you can dissolve the old company and reregister as a new one. The latter method is recommended, because for purposes of taxes and legal matters, you would have to have an accountant/lawyer familiar with your old state as well as the new one if you use the former method.

**michael515** · Oct 22nd, 2007, 12:05 AM

I don't see why you cannot setup an LLC down the road.

**Corrado79** · Oct 23rd, 2007, 09:48 PM

Originally Posted by lucas

Once a business entity selection is made, you can't change it. You have to make a new company and dissolve the old one to change your entity type.

This is an inaccurate generalization. For the most part, switching between entities can be done. There is a process involved, but it is possible.

**aptohosting** · Oct 23rd, 2007, 11:07 PM

Originally Posted by Corrado79

This is an inaccurate generalization. For the most part, switching between entities can be done. There is a process involved, but it is possible.

I concur, North Carolina made it very easy for us to switch from a sole proprietorship to LLC. Just needed to get federal tax ID, fill out some forms, and cut a check.

Tom
www.aptohosting.com