Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hi and welcome to Just Answer!Several issues to consider...First of all - we may not provide you with registration. Posts ob this site are for general information, and are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), and do not establish a professional-client relationship. Then - if you want to start a sole proprietor business - you generally do not need any registration - and may start acting as a physical person - using your own name and your SSN. You may however register DBA - but may do that in parallel with your business operations - so that would not hold your business activities. You also may request separate tax ID for your business - while you are not required to have a separate tax ID - if you do not want to disclose your SSN - you may use that separate tax ID for business reporting purposes. With a DBA (or fictitious business name) you will be able to conduct business under the name different from your own. To register the DBA - you may either do on your own or hire any service (for instance Legal Zoom that you already mentioned). Additional service cost might be ~$50-$100.If you do on your own - please be aware that Florida law requires to advertise your intention to use DBA by placing an add in a newspaper in your county.
Here is the place to go - https://efile.sunbiz.org/ficregintro.html If paying by check or money order, allow 3-5 weeks for processing.
Filing Fee to register a fictitious name is $50.00. You have the option to purchase a certificate of status for additional $10.00, or a certified copy for an additional $30.00.Let me know if you need help with reporting your sole proprietor income and expenses on tax returns.
As you are looking for quicker registration - I do not think it is possible because of the sate processing time 3-5 weeks.
Thanks. I will try try to do this on my own
Yes - you may do everything on your own - what you could expect - it might take day or two to prepare all paperwork and will save you $50-$100 service fees.
First of all - regardless of having DBA - as an independent contractor- you are considered as running your own business.The business income and expenses will be reported on the schedule C - http://www.irs.gov/pub/irs-pdf/f1040sc.pdf
The net income (after deductions)will be reported on the form 1040 line 12 - http://www.irs.gov/pub/irs-pdf/f1040.pdf
If the business has net income over $400, it may be required to file Schedule SE, Self-Employment Tax and net income is likely self-employment income and 15.3% self-employment tax would be required (13.3% in 2012).
Self-employment taxes from schedule SE will go to the form 1040 line 56 - http://www.irs.gov/pub/irs-pdf/f1040.pdf
Also - she will deduct half of self-employment taxes on the line 27.Generally - that all you needs. Please review all possible deductions - that might help to reduce income tax liability.
I was informed by another expert that the forms are online at www.sunbiz.org . That website is closed until Monday, January 7, 2013 as they are preparing the annual reports. If the customer downloads the form and overnights it to the Secretary of State, you can have a fictitious name within a week.