Welcome to the Small Business Ideas Forum! We are a community of over 100,000 small business folks with over 163,000 posts for you to browse. We pride ourselves on being the friendliest forum you will find and we'd love to have you as a member of our community. Please take a moment and register for a free account. If you need any help, please contact Chris Logan.

Small Business Ideas Forum

Small Business Ideas Forum

A friendly place to share small business ideas and knowledge, ask questions, find help and encourage others that are involved in the small business industry. Topics include small business marketing, generating revenue and small business computing.

Go Back   Small Business Ideas Forum > General Issues > General Small Business Issues
Register Search Today's Posts Mark Forums Read

Thread Tools
Old 21st February 2006, 10:01 PM   #1

Join Date: Feb 2006
Posts: 3
Default How to start small business based on freelance work??


This is my first post on the board, and I apologize if this is the wrong forum to discuss this!!

I have a regular job, but I've been doing freelance web design off and on for the past year. I do not make enough with the work to quit my job, nor do I want to quit my job and pursue this. It's more like a side hobby.

I was told that I should start my own business, for tax purposes. I have NO IDEA how to start my own business or what I would even set myself up as (LLC, INC, etc.) My only purpose for the business is for tax purposes and to be "legal" for any clients I have.

Can any of you give me some advice to what you've done?? Any freelancer out there who could be a mentor?

I appreciate your help!

linkjg is offline   Reply With Quote
Register or log in to remove this ad.
Old 21st February 2006, 10:40 PM   #2
ACRNYC's Avatar

Join Date: Feb 2006
Posts: 6

For you, the best way to go would be sole proprietorship. Very simple to set up, and you can even combine your taxes with your personal taxes/1040 at the end of the year. S-Corps, C-Corps, LLC's, etc., have way too much maintenence and set up for you to worry about. A sole proprietorship is simple, affordable, but will keep you "legal."

ACRNYC is offline   Reply With Quote
Old 22nd February 2006, 09:52 PM   #3

Join Date: Feb 2006
Posts: 3


Thanks so much for responding to my post. I'm located in Tennessee, so I was trying to do some research online about how to register for the business. I found this page: http://www.tennesseeanytime.org/bizreg/index.html that seemed to offer info about business registration, but I'm not sure what classification I'm under... Would I be Franchise and Excise Taxes or Sales and Use Tax??

Do you know? Or is this something I don't need to know about for this?

I also found this info:

Sole Proprietorships. In general, sole proprietorships in Tennessee can be formed with no formalities. However, as discussed in Section IV(b) below, it will generally be necessary to obtain one or more local business licenses from cities or counties in which you operate and, in some cases, state licenses, as well.

No separate state income tax filing is required, generally, for a sole proprietorship operating in Tennessee, since there is no general state income tax in the state, only the Hall Income Tax, a tax on dividends and interest income of individuals.

Last edited by linkjg; 22nd February 2006 at 09:55 PM.
linkjg is offline   Reply With Quote
Old 23rd February 2006, 03:45 PM   #4

Join Date: Feb 2006
Posts: 19

Sole proprietorship is easy, but just be careful since it does not provide the protection that an llc or inc would. If someone sues you for your work you could lose everything.

a1steelbuilding is offline   Reply With Quote
Old 2nd March 2006, 11:36 AM   #5

Join Date: Feb 2006
Posts: 3
Default Do I need a business license because of profit??

I was reading about state taxes today and came across this:

EXEMPT BUSINESSES - Businesses that gross less than $3,000 a year are exempt.

Does this mean that I do not need to get a sole proprietorship since I do not make more than $3,000 a year?!

Any advice out there?

linkjg is offline   Reply With Quote
Old 2nd March 2006, 12:30 PM   #6
VIP Contributor
jvance's Avatar

Join Date: Feb 2006
Location: Alberta, Canada
Posts: 183

I agree about the sole proprieter business set up.

If you are looking for places to bid for web projects, try www.elance.com. There are lots of potential customers who post their projects there. All you have to do as a freelancer is bid on them.

jvance is offline   Reply With Quote


Thread Tools

Get Updates
RSS Feeds:
RSS Feed for General Small Business Issues RSS for this Category Only: General Small Business Issues

RSS Feed for Small Business Ideas Forum RSS for Entire Forum
Forum Rules

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump

Small Business Ideas Forum

At Your Business - Small Business Directory
Free Business Forms - Prewritten Documents
Search Engine Guide
Small business guide to search marketing

Small Business Brief
Fetching the Best Small Business Info

Free Links - Free Advertising
Free Guide - Online Directory

Advertise your business here
Contact us for more details!

Semantic Juice
Register now to access free Quick SEO service!

Rocket Lawyer
Sign up for free 7 day trial. Boost your biz!

Buy UPC Codes
Get your products listed online!

All times are GMT -5. The time now is 08:29 PM.

Powered by vBulletin® Version 3.7.3
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
Copyright 2004 - 2018 - Privacy