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this may seem silly...

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  • this may seem silly...

    ive read small business for dummies. We have worked on a business plan. and right now are looking at spaces to open my grooming shop. Its only going to be me*sole proprietor*, so as far as i know i just need to get a business license with the city. Now the silly question, how do i know the business is official?! i know youre all thinking 'wow....did she really ask that?' but from what ive read I dont need and EIN if im not having any employees. So how is the business official when it comes to tax time? Im sorry if its a dumb question, im just all nerves right now with trying to get my own shop.

  • #2
    Usually when you apply for your business license they give you an EIN, or they tell you to use your SS# if you are a DBA. That's how I remember it anyways, I told them I didn't have employees but might in the near future, so I think they set up my number right then and there, my friend had a DBA no employees, they told her to use her SS#.
    Please correct me if I remembered wrong.
    And in regards to feeling silly for asking - don't - I feel it's very confusing, some things are over explained other things not at all, or you miss it because you just fried your brain on 20 pages of nonsense
    Enjoy your business!!!!

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    • #3
      You may also have a "UBI" (unified Business Identification) number on your license which can be used for filing quarterly taxes and such.
      ~*~*~Shawn, C.M.G.~*~*~
      Apparently common sense isn't all that common
      *~*~emipoo on egroomer*~*~*

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      • #4
        It would be a really good idea to meet with an accountant before you get going to advise you. At least let them do the business taxes the first year and teach you how to properly set up your books.

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        • #5
          You will need to file a ficticious name statement, unless you plan on operating under your name only. For example, if you're operating as Mary Smith, Groomer you do not need this, but you do if you are opening Mary's Pet Grooming. Contact your local county clerk/recorders office. You can do this online. I would also suggest getting a separate business bank account for your business to keep your business purchases and expenses separate from your personal. Get started from the beginning with some kind of bookkeeping system like Quickbooks, so you can track your revenues and expenses.

          Go and talk with an accountant. He/she will be able to tell you what to expect at tax time. Because you are sole-propioritor you are still subject to taxes. Don't quote me on this, but you will have to pay some kind of self-employment tax. You can't just take money for yourself and not pay taxes. Your accountant will be able to help you.

          Also don't forget you need insurance before you start grooming the first dog!!

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          • #6
            In Connecticut besides the DBA from your city you also need a license from the Department of Agriculture to run a grooming business so make sure you check with your local agencies cause not everyone will know the answer to this google it for your state online starting a business or license for grooming facility and something should come up telling you the licenses you need.

            Also personally if you own a house or any property I would not open a business without being an LLC to protect your personal assest from any possible lawsuits. Even if you have no personal property that could be in jeopardy now in CT people have 25 years to collect on any judgement against.

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            • #7
              Originally posted by bubblzofluv View Post
              Now the silly question, how do i know the business is official?! i know youre all thinking 'wow....did she really ask that?' but from what ive read I dont need and EIN if im not having any employees. So how is the business official when it comes to tax time? Im sorry if its a dumb question, im just all nerves right now with trying to get my own shop.
              You will need a EIN no matter what kind of business organization you may become...it doesn't have anything to do with having employees. As a s/p you can use your sociial, but idenity theft makes that a bad idea. You can get your EIN by going to the IRS website..it's free and fast so don't get dupped by the websites that will do it for you for a fee. You will need your EIN to open a business checking account, to rent commercial property and to get your business license issued by your city....atleast I did. I also have needed it to open an account with vendors who only sell to businesses.

              Take the time to find an accountant that you can trust. They will direct you on how to keep your personal finances and business seperate so tax time won't be a mess.

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              • #8
                oh thank you everyone for all of this great advice!!! I have my business named registered. I got a quote for insurance , thanks to this website i found the right place to get groomers insurance!

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