Business Liscense question

[Breezy]

OK I have a ?. I am getting conflicting info here.
I have read that if you open a business under your name that you don't need a license. Is that true? or do you need one no matter what name you choose?
Also How does the Tax ID work?
TIA
Breezy

[Breezy]

OK I think I got most of my answers from other threads.
But do I have to get a DBA even if I am using my name?
Also do most insurance comapanies offer the insurance I would need or do you have to go through certain companies?
Sorry for all of the ??s

[hhscr]

Not all business types require a license per say from the state. If that is what you mean. What you will need if you want to open a banking account in the business name is a DBA certificate from the county clerks office where you live.

What this does is prove that you are opening a business and also protects the name from someone else for 10 years, (must be renewed every ten years). At the same time it opens you up to property taxes on the assets of your business to the county tax office.

The Sales tax certificate comes from the State Comptrollers office and what its for is so you can purchase items without paying tax up front if you resale the items, but you have to collect tax on the items you sell and then forward the taxes to the state.

The best advice I can give is to do some research into whatever field you are wanting to open a business in and get the advice of a good CPA that deals with small business and can help you over the rough spots as well as getting the bookkeeping started in the right direction.

It may cost a little up front but it can save you alot in the long run. I depends on the type of business and what your liabilities might be as to the best business type to open such as sole proprioter or LLC or some other corporation. They all have their places and some require alot less bookkeeping but may not provide the protections you need.

Good Luck with your business and professional help is always a good idea.

[Breezy]

Thanks Darrell.
I have done some lol, guess I will do some more. Especially since Nueces County is so high in Property taxes. :(

[TxManx]

The Sales tax certificate comes from the State Comptrollers office and what its for is so you can purchase items without paying tax up front if you resale the items, but you have to collect tax on the items you sell and then forward the taxes to the state.

One more thing on this - if your business is photography, or something else that manufactures something else, then the sales tax certificate allows you to purchase the items you use to manufacture other things without paying sales tax on it.

ie, for photographers - cameras, film, equipment, props, photo processing, etc. can all be purchased sales-tax free, provided you are using them to produce photographs on which sales tax will be collected...

(at least, that is how the lady at the controller's office explained it to me...)

[hhscr]

Originally Posted by TxManx

One more thing on this - if your business is photography, or something else that manufactures something else, then the sales tax certificate allows you to purchase the items you use to manufacture other things without paying sales tax on it.

ie, for photographers - cameras, film, equipment, props, photo processing, etc. can all be purchased sales-tax free, provided you are using them to produce photographs on which sales tax will be collected...

(at least, that is how the lady at the controller's office explained it to me...)

Ken,
Thanks for adding this, I forgot to bring it up.

Thats also how I was told. It can make a real diffrence when you buy professional equipment. But just make sure you can produce the records for commercial use if it ever comes up.

[hhscr]

Originally Posted by Breezy

OK I think I got most of my answers from other threads.
But do I have to get a DBA even if I am using my name?
Also do most insurance comapanies offer the insurance I would need or do you have to go through certain companies?
Sorry for all of the ??s

Depends on what type of Insurance you are looking for. As a general rule from what I have found is that if you are looking for business related Insurance you will have to go with coverage especially for businesses.

For an example if you are talking about insurance for Camera Equipment you use in Business you will have to specify that you are covering equipment you use in a business. If you try to cover it under your homeowners and file a claim and it is discovered it was for a business the claim will be denied.

As for insurance to cover liability and etc... you will need to also check with your agent and see what is offered. I have no experience with them but I have heard that the PPA (Pro Photograhpers Assoc.) has some pretty good coverages and rates both for equipment and liability.

Just be sure and ask all the questions you can think of for what is covered and not covered, since most commercial policies are very restrictive compared to what you may be use too.

For example, on my business auto coverage, there is no automatic coverage for a rental vehicle if one is needed, and if I let someone else drive the vehicle for an extended period I have to let the ins co know about it. Also just because you have the camera equipment or other items for business in the vehicle and it is stolen or broken into it is not automatically covered. These are just a few examples I am sure there can be more.

[Breezy]

Thank you both for all of the great info!!
It is greatly appreciated

[picasso]

Another thing - To open a business checking most banks require a DBA.

Paul

[Breezy]

Thanks guys going to get the DBA on friday and the tax id #
Thanks for all of the help

[LoriLeigh]

Hi Guys,
I am in Temple, TX and trying to take my photography to the next level and actually get paid for my work. Can someone please explain the business steps to taken in Texas?
Like for one I know I need a Tax ID which I have already applied for over the internet through the comptroller office. How often do you file if you make hardly anything!?
Next do I need to "register" my business with my County Clerk? How do I get in touch with my "county Clerk" and does a photography business require a "license"
Do most people do this as a sole proprietorship or an LLC?
I would really appreciate any help you have to offer.

[Howard Barlow]

Originally Posted by hhscr

What you will need if you want to open a banking account in the business name is a DBA certificate from the county clerks office where you live.

In Texas, you do not need a DBA if the owner's last name is in the business name.

BUSINESS & COMMERCE CODE

CHAPTER 36. ASSUMED BUSINESS OR PROFESSIONAL NAME

SUBCHAPTER A. GENERAL PROVISIONS


§ 36.01. SHORT TITLE. This chapter may be cited as the
Assumed Business or Professional Name Act.

Added by Acts 1977, 65th Leg., p. 1095, ch. 403, § 1, eff. Aug.
29, 1977.


§ 36.02. DEFINITIONS. In this chapter, unless the
context otherwise requires:
(1) "Partnership" means ...
(2) "Company" means...
(3) "Corporation" means...
(4) "Person" includes ...
(5) "Representative" means ...
(6) "Estate" means the property of any person which is
administered by a representative.
(7) "Assumed name" means:
(A) in the case of an individual, a name that does
not include the surname of the individual;


Bank of America, I don't know about other banks, does not require ANY business documents for a commercial account, as long as the owner's last name is in the business name.

http://www.bankofamerica.com/small_b...=what_you_need

Sole Proprietorship:
SSN or Business Tax ID #
Business name filing document, such as a Fictitious Name Certificate or Certificate of Trade Name, showing both business and owner's name, or
Business License showing both business and owner's name
If the business name includes the owner's last name, no documents are required.

Originally Posted by LoriLeigh

Hi Guys,
Next do I need to "register" my business with my County Clerk? How do I get in touch with my "county Clerk" and does a photography business require a "license"

Counties usually require an Occupational License (another tax on you). Some cities may, as well. The county clerk is in your county courthouse.

[CobyPhoto]

Just a note, while Howard is right on with the information that he has given, it is wise to get the dba in place to PROTECT your name.

Once registered, your name is protected from anyone else assuming that exact name, for a period of 10 years and doing business under it. In other words, you are protecting yourself from others and anything they may do that might have an affect on your business and reputation by name association.

While some banks do not require the dba, most do for this reason alone. Protection. It is a simple form and fee (one time) so it is worth it to protect your interest in the assumed name of your business.

Almost guarenteed, you will have to have a dba some point down the road as well, if you lease equipment, get a loan for business purposes, etc. so you might as well get it done up front and not have to bother later on.

On insurance - PPA had the BEST General Liability & All-Risk Equipment Floater out there, for business or commercial. (Not considering personal here.) PPA's All-Risk is still the only floater with a 100.00 deductible, reasonable rates and true all risk coverage. It is based on the $$ amount of equipment you want to insure. The same company offers a very decent General Liability policy (unless you own a studio and have a building involved) for about 320.00 to 360.00 a year.

CJ

[andyz]

An LLC shields your personal assets because the LLC is an entity. If you go the sole prop route if someone sued you, they'd sue you and not the LLC. There can be tax differences as well but that is better left to a CPA to discuss.

I think initially sole props are more popular, but that is just an opinion. You'd be able to register your business name at the courthouse in Belton.

If you form an LLC there are registrations with the state that are required and plenty of documentation required for a bank account. Again, it is because that LLC is a separate entity.

[picasso]

Originally Posted by LoriLeigh

Hi Guys,
I am in Temple, TX and trying to take my photography to the next level and actually get paid for my work. Can someone please explain the business steps to taken in Texas?
Like for one I know I need a Tax ID which I have already applied for over the internet through the comptroller office. How often do you file if you make hardly anything!?
Next do I need to "register" my business with my County Clerk? How do I get in touch with my "county Clerk" and does a photography business require a "license"
Do most people do this as a sole proprietorship or an LLC?
I would really appreciate any help you have to offer.

They will make you file quarterly at first or at least they did me. I asked for less but they said we have to wait until the end of the year to see how much money I bring in.

You will need to register with the county clerk to get a DBA. This will allow you to get a bank account. Most banks want a DBA before they will open a business account.

An LLC is more expensive but gives you certain legal protection from a financial stand point. A sole proprietorship is easy to do but you might/probably need to get liability insurance if you are going to be doing weddings or really anything now days. Even if you are shooting kids the parents could claim that they were harmed in some way and that is all it would take to sue you.

My wife is an attorney and we have consulted her friends that do business dealings on a regular basis and this is what we decided -

Wait on LLC until I go full time and start making decent money. There are things you need to have with an LLC like a board of directors etc... that must be kept up with in an LLC. Just starting out you don't need or want that headache. Plus you want to make sure you are really going to keep with the business and its going to do well before you spend the money on an LLC.

Get a DBA in your county for sure and I was recommended in any county I was planning on doing business in on a regular basis. The reason being is a DBA will only protect you in the county you filed in. Lets say you start doing really well and someone decides to take your name and you haven't filed in other counties. They could start a business with your company name in another county and reap the benefits of your marketing and good photography.

It is my understanding that if you are using your name in your business that there is no protection from someone else with the same name using their name in their business. I am not sure where and when this applies because I am not using my name in my business and did not pay attention to the specifics of that when we were researching.

One more thing when trying to figure out how to set up a small business in Texas. Google is your friend. Just type in Texas Small Business and Tax in and you will get a ton of resources.

Paul