LLC?
S Corp?
DBA?
You should do research for your own state, but generally just set up an LLC. Low-cost, easy to do. You may want to look at doing an S-corp, but again up to you and your state and doesn’t consider your any possible state professional licensing rules.
LLC is the way to go IMO. LegalZoom works.
Why not just keep it simple with a sole proprietorship & file a Schedule C? There would be no set-up cost for a sole proprietorship.
You can get a FEIN (tax ID) for a sole proprietorship if you don’t want to have your SS# on documents or invoices. You can get this online at the IRS website, no cost.
You can file for a DBA to use a more professional business name other than your personal name. The DBA would be minimal cost.
Check the website for the Department of State in your state. You have to file some paperwork with the state. You should also have articles of incorporation for a corporation or membership agreement for an LLC.
I don’t know about the laws in North Carolina but here in AZ you can just file a business return as an individual for the income from your consulting business. BUT it’s imperative you keep meticulous records and receipts. You want the results of any tax audit to be a refund from the government. If you think you might need protection you can file a LLC but if you are basically going to only have one client you don’t need to go to all that trouble (unless your state requires it)
actually the irs is hiring ;)
I would consider re retiring and do it right next time since you want to un retire
You should ask your accountant.
Open a separate business checking account with your local Credit Union. It is cheaper than an account from a bank. Deposit all business payments to this account, then transfer funds to your separate personal account as needed.
Transfer your tax reserve to the savings account that goes with your business checking account. Then you will always have enough on hand to make your quarterly tax payments. Do this every month. Do not ever skip this step and do not raid the tax fund for any reason. Oh, and make those quarterly tax payments on time, every time.
Best of luck to you!
In that case, you can kill a lot more of them than they can of you simply because there would be a lot more of them than you.
Incorporation generally brings in more state than imperial entanglements.
I bought a number of books regarding incorporating, and then set up the company myself. If you have doubts, just hire an attorney.
I presume you already know how to do accounting. Hopefully, you will not pursue such a business unless you already know how. Filling out tax forms correctly and making the quarterly deposits will keep the tax boys off your lawn.
Later.
Once you become an actual company, you’ll find the government at various levels wants money out of you. Therefore, just go word of mouth and work without being a standard corporation. Only if you get big enough should you incorporate.
Free advice on Free Republic? What could go rwong?
For 5-10 hours a week with a singular customer, why not just go W-2 employee?
I work full time as a company accountant and have a bookkeeping business on the side. Very simple.
If you have no foreseeable liability for damages caused while conducting your business, why bother with incorporation? Just track your profit/losses, expenses, revenue, etc., to make sure your accounting is perfect for your annual return (or quarterly payroll tax payments). Best to set up separate accounts for the business activities, even if under your own name.
You can get a 2mm+ umbrella policy to cover yourself w/o the incorporation.
Btw, if you do incorporate, you are on the public record in your state and you’ll get scumbags trying to sell you sh* all day long.
Good luck!
I’ve been through multiple iterations of businesses over the years. The easiest way to get started is a sole proprietorship. As business circumstances change, regulations, tax code, and any liability considerations change you can quickly change forms of business. In the past, I started a consultancy as a sole proprietor. That morphed to an S-Corp after adding employees and a crackdown by the IRS on my customers. Basically, the IRS wanted my customers to treat me as an employee. Later I dropped the S status for the business to be a normal corporation. That had to do employee benefit plans and executive (me) plans. I had a competent CPA, lawyer and banker that guided me along the way. The key is to have reasons to change forms of business. Most of the time you will find the government forces you into those decisions. Weigh alternate decisions against the profit you make under each form of business.
How about this? Forget this idea. Start another business that is an ELF. Easy Lucrative and Fun.