Still haven't learned this in school?

[kshy]

I'm trying to get some insight on some of the things I still have yet to learn in school, I do mean college. Let's say you start providing a service to customers, or selling a product, and start charging fees and collecting profit. When would you start filing taxes for that separate income? Would you file differently for that? Do you need a registered company name before earning any official profit, or any other forms of legal documents? Basically, what documents do you NEED to file when you start earning money, off of a product or service, so you're not in any legal trouble?

 

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[funkj25]

This is a pretty broad based post for anyone to answer with something entirely concrete.

You don't technically NEED a business entity to make profit (for instance flipping stuff on craigslist), you could report that income as a sole-proprietor. Depending on what you're doing, a legal entity might be of use to you.

This is definitely an "it depends" situation. On what you're selling/providing, where you're doing it, for how much money, does it require licensing (hazmat, etc.). On and on.

Here's a couple good places to start
https://www.sba.gov/starting-business/business-licenses-permits/state-licenses-permits
http://www.nolo.com/legal-encyclopedia/s-corporations-vs-sole-proprietorships.html

From there Google is going to be your friend as far as starting to figure out your own particular situation as well as searching the forum.

As always, I am not a lawyer and this post doesn't constitute legal or tax advice.

 

[kshy]

It was vague because i dont have any specifics in mind. I was thinking in terms of, hypothetically, I have a service in mind to deliver some sort of edible goods to consumers, they buy it and that becomes my profit. I was just curious if i would need some sort of business entity to put this under when i file taxes. The vague answers did sum it up, and the websites are helpful.

 

[daivey]

try selling something to make money first.

 

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