DBA Question

[David Price]

I have read many of the discussions regarding the Doing Business As.... but I'm still confused. If I get a DBA does this include the Texas sales tax number etc? Even tho I don't start my "business" right now, will I be expected to report sales tax (when there are no sales taking place yet)? Will getting a DBA put me under the microscope with the Feds regarding "earned income"?

Maybe a stickie explaining all the do's/don't would be a good idea if someone has the time to do that?

Thanks,
~dp

[sbp]

I don't think so. I have DBA from two years but I have not done much.
From this year I am planning to file tax.

[WhiskeyBoy]

no... DBA is just basically registering your company name, getting a Tax ID is another thing.

[suzyjazz]

No, not the same. If you have a DBA you should file your sole proprietorship income on your personal yearly income tax on the special attachment, but I have no idea if it flags you in any way for auditing. No idea how that works. The sales tax ID is a different thing. Once you get a sales tax ID, you must report your sales *even if you have zero*. You can run your business without collecting tax. How advisable that is is a different story! I opted to go all the way from the start (DBA plus sales tax), for better or worse.

[Steelsun]

I've had about 4 or 5 DBAs, mostly just to "reserve" the name, and only got tax permits for 2 of them. As others have said, it's a differant animal.

Getting the tax permit might put the federal system on notice, it certainly alerts the state system (be sure to file when you must, even with no sales! The penalty for lateness or missed files gets high - I once had to pay $50 for a late filing even though I had no sales for a few quarters (dead biz) ).

[haraki74]

The DBA has nothing to do with your taxable status with the state of Texas. You should contact the Texas State Comptrollers office [URL="http://www.window.state.tx.us/"]
to signup online for your sales certificate.

Harry

[David Price]

So the DBA thing simply secures my "prospective" business name untill I get ready to use that name? Then at the time that I actually start selling work I would do the state sales tax thing using the name on the DBA? State sales tax is reported quarterly? And I'm just guessing here, but I'd report my earnings at the same time I file my day job income tax? I understand there's sales tax and there's income tax. I'm just trying to verify that I can go ahead and apply for my DBA without setting any of the tax business in motion.

I know I should talk to a CPA but at 75 bux an hour, I'd really like to know a little more than I do before he starts his clock.

Thank you all for your replies, I really appreciate your help.
~dp

[bullsparade]

A DBA is nothing more than a legal filing at your local courthouse stating you are Joe Public doing business as "Joe Business". The filing will allow you to go down and set up a bank account in the name of "Joe Business" and you, Joe Public can then sign your name to bank drafts on the Joe Business account.

Like it was sated before, the DBA filing will somewhat reserve the name for you in your county. It doesn't nationtionally register it or anything. Once you have that document you can sit back for as long as you need to get your business together. Once you have a business plan then that would be a good time to call the Comptollers offcie and say you need a TAX ID.

DBA is TOTALLY seperate from Tax ID. Just walk into your courthouse and tell them you want to do a DBA...you can be done in 5 minutes.

[David Price]

Originally Posted by bullsparade

A DBA is nothing more than a legal filing at your local courthouse stating you are Joe Public doing business as "Joe Business". The filing will allow you to go down and set up a bank account in the name of "Joe Business" and you, Joe Public can then sign your name to bank drafts on the Joe Business account.

Like it was sated before, the DBA filing will somewhat reserve the name for you in your county. It doesn't nationtionally register it or anything. Once you have that document you can sit back for as long as you need to get your business together. Once you have a business plan then that would be a good time to call the Comptollers offcie and say you need a TAX ID.

DBA is TOTALLY seperate from Tax ID. Just walk into your courthouse and tell them you want to do a DBA...you can be done in 5 minutes.

I got it!! No if's, and's, but's or maybe's either. Thanks for breaking it on down for me, and I don't mean that in a smart@$$ way. I'll ask wifie to go by the courthouse tomorrow and get the form. I'm glad you mentioned the bank account part of this too. Now I can start hiding "my" money from "our" money. Or maybe it's "her" money and "our" money? Oooo, she ain't gonna like that.

Thanks to all of you that responded to my questions, I appreciate your taking the time to help.

~dp

[DEMDeepEllumMusic]

DBA filings are usually less than $20 and they last a number of years.

[suzyjazz]

Originally Posted by David Price

State sales tax is reported quarterly? And I'm just guessing here, but I'd report my earnings at the same time I file my day job income tax?

In TX they will ask what your expected annual earnings are. If it's high enough, they will ask you to report quarterly, otherwise yearly. I don't remember what the cut-off is. It's based on a calendar year and is separate from income tax. My sales tax is due Jan. 20. I presume it's the same for everyone. I only got my ID a few months ago.

[LoungeLizard]

Originally Posted by suzyjazz

In TX they will ask what your expected annual earnings are. If it's high enough, they will ask you to report quarterly, otherwise yearly. I don't remember what the cut-off is. It's based on a calendar year and is separate from income tax. My sales tax is due Jan. 20. I presume it's the same for everyone. I only got my ID a few months ago.

...and it's my understanding that you must file even if the amount owed is $0.

[JohnT]

Sure would be nice if we could just go out, have fun shooting, and make a few bucks without worrying about all this tax stuff.

Whew, just had to get that out.

[suzyjazz]

That is correct.

Originally Posted by suzyjazz

Once you get a sales tax ID, you must report your sales *even if you have zero*.

[Steelsun]

Also a DBA is needed to open a bank account in the name of your business. Or else you won't be able to deposit those checks for "Camera Eye Photography" or whatever.