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Anne
Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 1782
Experience:  Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
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Hi again...I was wondering...i have a business that wants me

Resolved Question:

Hi again...I was wondering...i have a business that wants me to do their books (word of mouth) from my home...so for this year i know I will need a license. What do you think would be better...a llc or sole propr. or just a business lic and dba. I don't plan on doing anything big. Just extra cash while doing other things. I do want to file correctly to avoid fees.
Submitted: 1 year ago.
Category: Tax
Expert:  Anne replied 1 year ago.

Anne :

You're really much better off to be a Sole Proprietor (sch C). You don't really have the volume of book keeping that would warrant making your company a C Corp, or S Corp

Anne :

Both of these entities must fie their own tax return, where as a Schedule C is part of your Federal 1040 return

Anne :

You don't need to get an EIN #, and I'm not sure what kind of license you're speaking of

Customer:

state business license

Customer:

I read where the llc keeps you protected in case of a lawsuit...that is the part that made me not sure as to which one to pick

Anne :

oh....it sounds like you're talking about "errors and admissions"

Anne :

but that's a form of insurance

Anne :

If I were going into business myself I would definitely buy that insurance

Customer:

So having a limited liability corp would not accomplish the same thing with less expense than insurance

Anne :

"LLC" can actually be attached to ANY business, from Sole Proprietor to Corp

Anne :

Although there is SOME protection, its not NEARLY the amount offered by the errors and omissions insurance

Anne :

however, if these are people that you know quite well, you may not need the insurance

Customer:

Okay...down the line if i even went that route...do you have any idea of what a common price range that is in to purchase?

Anne :

Oh, I'm really sorry, but since I have worked for the same large company (who buys the insurance on all of us) for 27 years, that

Anne :

that's not something I ever looked at

Anne :

If I were you, I'd call around

Customer:

thats fine...one last thing...I hope its okay to go back and ask this...but our last session you spoke of the filings schedules for the bookeeping and rental but i didn't get what schedule to file the antiques on...is that okay to ask you this now?

Anne :

You're fine...........honest.

Anne :

you report the sale of the antiques on the new form 8949, which will eventually feed over to the Schedule D

Anne :

You may ask as many follow up questions as you like

Anne :

it ' s all part of the job

Customer:

oh how nice...

Anne :

yes.......that's a nice feature for our customers

Customer:

what ought to be an average price to pay a tax preparer for that?

Anne :

Depends..........at Block, there's no charge......(we charge by the form) for people who get paid hourly?......I have no idea..

Customer:

what would those forms cost?

Customer:

at block

Anne :

I'm not trying to be vague here............Block has the strangest pricing to try to keep track of....they "tweak" it every year,....

Customer:

under 200?

Anne :

For the 8949 (Sch D) you're probably looking at maybe $35 for one entry

Anne :

I have to be honest with you though...............while I LOVE small sole proprietor businesses, they are some of the most expensive forms we do

Anne :

that expense includes depreciation

Anne :

business miles

Anne :

if you have an office in home

Anne :

etc

Anne :

While yours doesn't appear to have that much to it.............I think the starting price is around $80??

Customer:

that is good to know...it gives me some type of an idea

Anne :

Every time you go to a store (office max, etc) and buy things for your business those miles become business miles

Anne :

at roughly 58?59? cents /mile, that can really add up

Anne :

you would need to keep a record of your miles though

Anne :

my Dad used to keep pocket calendar in his car...........he would then record the # XXXXX miles, and why they were business miles

Customer:

good to know...a small book or like an excel sheet

Anne :

that works too

Anne :

if you think of more questions, just come back here (you can bookmark this page) and I'll get to them as soon as I can

Customer:

greatly appreciate your help. Good evening to you.

Anne :

good evening to you too.

Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 1782
Experience: Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
Anne and 7 other Tax Specialists are ready to help you
Expert:  Anne replied 1 year ago.
Thank you very much for the accept and the excellent rating and your generous bonus!

Please feel free to ask for me me by name if I can help you in the future.

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