dba and tax id

[texangal]

do you have to get a dba? or do you just need a tax id?

A DBA is not required by law but you should have one. For a couple of reasons. 1. A bank will probably require it for your account. 2. It keeps your business name for you and others can not use it.

Now remember, you should get a DBA in each county that you will be working in. Just a good way to protect yourself.

Tax ID . . . A MUST!!!! The fines are $500 a day for each day you operate a business without a tax id. And they are SERIOUS!!!!

[canoflan]

For the money it costs and what it helps you do, get the DBA and try to name your company something that would not be chosen by someone else. People that name their business "Lovely Photography" can run into mulitples easily. Putting YOUR name somewhere in the name can help.

Ditto on the tax ID. If you have a slow business, eventually you can apply to file once a year your sale tax return if you have less than $1,000 in sales tax a year (that's sales tax, not sales so your sales would be around $13,000 plus a year to reach that).

You can file online as well and it is quite easy. Just keep good records of your invoices and tax charged and get a separate bank account with your new DBA.

[CobyPhoto]

Originally Posted by canoflan

Ditto on the tax ID. If you have a slow business, eventually you can apply to file once a year your sale tax return if you have less than $1,000 in sales tax a year (that's sales tax, not sales so your sales would be around $13,000 plus a year to reach that).

You can't "apply" to file annually, quarterly or even monthly. The Texas Comptrollers office will TELL you when you file. End of Story. It is based on the amount of sales tax you remit in any one filing period.

CJ

[CaptainTom]

EDIT: GRRR !!! I don't feel like arguing today with Mr. Grumpy.

[CobyPhoto]

Originally Posted by CaptainTom

Some banks require a DBA and some don't, depending upon the name of the business. If it is called Joe Smith Photography they might not require a DBA.
If you call it Microsoft Photography they will want to see your DBA.
Make sure your bank account is registered under the name your business has.
When I changed my business name to T3 Studios from Tom Thompson Photography (they didn't require a DBA since the name included my name), the bank didn't want to accept checks made out to T3 Studios until I changed the account name (and showed them the DBA).

You may be right, but someone can go out and register a DBA with YOUR business name and then have legal access to your banking info! AND you can't do a thing about it. They paid to register that name and you didn't.

Do you want to take this chance? It is a simple, cheap effective way of protecting your ability to use this as your business name. This is the sole reason MOST banks require a DBA. Protection.

CJ

[texangal]

did you use a cpa to handle all this tax id, dba stuff?
is there anything else needed or just these two things?

[CaptainTom]

Tax ID can be taken care of on line.DBA, just go to your local court house. Basic paper work. They research the county records, and issue you a DBA. Check your local zoning regulations.

[CobyPhoto]

Once you get your Tax Certificate and DBA, call the County and get the paperwork to file your Business Personal Property Tax Rendition.

IF you plan on seeing clients in your location (even if it is your home) and even if it is one client, (you list Houston) you probably need a Certificate of Occupancy. (Call 311 and they will connect you to the right office.)

Those are the minimums by law yoy have to fulfill.

CJ

[texangal]

before you really became legit....how much non-legit experience did you have.....i guess
when did you decide i need to take this to the next level...

[CobyPhoto]

That is sort of a loaded question. As far as the law is concerned, the first time you take money for your services or work, you are in business and you have to meet the minimum legal requirements.

Operating without the minimum legal requirements, for any period of time isn't a recommended course of action, exspecially today as the State Comprotller's office actively seeks out these businesses.

Again, if you take money for your work, you need to be legal. Otherwise, you just made a choice to actively break the law...or at least, that is the way the Comptroller will look at is if you get caught!

OR...if you don't want to do the business thing yet, find someone to work for and gain experience for a while.

CJ

[CobyPhoto]

Originally Posted by CaptainTom

EDIT: GRRR !!! I don't feel like arguing today with Mr. Grumpy.

Name calling doesn't get anyone anywhere. You call it grumpy. I call it being in business for myself for over 30 years and knowing what I am doing.

People that DON'T approach buisness as a business fail. There isn't a half way, part way, or in between. You either are in business ... AND operate it like that or you are not. If someone asks for advice in here about how to do things relating to business, they NEED to know the reasons why these legal documents and laws are in place and what they need to do.

ANY OF THE IN BETWEENS WILL GET YOU IN A BIND.

CJ

[Howard Barlow]

Originally Posted by CobyPhoto

As far as the law is concerned, the first time you take money for your services or work, you are in business and you have to meet the minimum legal requirements.

Operating without the minimum legal requirements, for any period of time isn't a recommended course of action, exspecially today as the State Comprotller's office actively seeks out these businesses.

CJ,
Is it the first time you take money, or is it when you open for business? As you mention above, the comptroller is looking for people set up in business. Every year at the fair, on opening day, the comptoller comes by every vendor, asking to see their Texas resale permit. They are not asking if sales have been made. People who do not have a permit are fined, and shut down until they get the permit, sale or not.

[CobyPhoto]

Hey Howard,

Actually, you are very correct. If you are soliciting and advertising your service/product for money, you are IN BUSINESS. Regardless if you make any money.

A good way to look at this is: If you are advertising/soliciting and a client comes up to hire you, are you going to tell them, "No, wait, come back when I get my legalities taken care of?"

You should ALREADY have all your legalities handled and be in business BEFORE you start advertising/soliciting for money.

Very good point!

CJ

[ara.bentley]

what is the Business Personal Property Tax Rendition for?

any one know anything about having to up your home insurance if you are meeting people in your home studio?