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  1. #1
    SitePoint Addict Chris Roane's Avatar
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    Hi,

    I am wanting to start my own design business. I was just wondering what legal information I need to know to do this. Are there any licenses I need to obtain, or is there anything I need to register with. How much do I have to make before I have to give some of it to the government in the U.S.? Do I have to worry about sales tax?

    Thanks!

    Chris Roane

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    SitePoint Wizard
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    You should ask RAGE, another member on this forum because he is starting his own design/development business too.

    I don't myself know much about the licenses but I do know that you have to be at least 18 to get a licensed business and a credit card.

    In some states, there is no tax on services (i.e. window washing, or Web design) but in some states there is. You'll want to check with your local goverment or someone who knows a bunch about your state before you think about tax.

    Yes, you do need to get a business license if you want to be incorporated (inc.) or a limited liability company (LLC). However you don't if you just want to be a single person (freelancer, to be more specific) without a license. From what I know, the license is a kind of verification that you are in fact Chris Roane of CR Web Design inc. and not someone who wants to make some quick bucks on a scam.

    I think once you make $600 then you have to pay taxes; but don't take my word for it.

    This is all based on the assumption that you're in the US.

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    Who the heck is Gen. Failure and why does he want to read my hard drive?
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  3. #3
    Skills to Pay the Bills Sparkie's Avatar
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    You might also want to check the Better Business Bureau online, which has all kinds of information for anyone starting any kind of business.

    My best advice would be to start out as a freelancer and see approximately how many queries you get for web design. If everything seems on the up and up, then look into a business license.

    I did some research and found that it has its good and bad points, so do whatever works for you, but I would check the BBB articles first.

    Hope this helps,
    Sparkie

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  4. #4
    SitePoint Addict Chris Roane's Avatar
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    Hi,

    Thanks for your help.

    Can all the people in the business be considered freelancers if there is more than one person working in the business?

    If we can consider ourselves freelancers, do we give a % to the government on the amount each of us makes over $600, or on the amount the business makes all together? I am asking this because all the people in the business will only make what their client will pay them and a % of what they make will go back into the business.

    Thanks!

    Chris Roane


    [This message has been edited by wsresource (edited April 30, 2000).]

  5. #5
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    http://www.score.org

    great resource, especially when you use the * FREE * business counselors...they are retired business professionals.


    - sam

  6. #6
    SitePoint Wizard
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    Well with freelancing, there essentially is NO company, so each person would have to pay individually.

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    Who the heck is Gen. Failure and why does he want to read my hard drive?
    Soon to come: Aspology.com

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    By using freelancers you would go with a 1049 form. We do this at my business when we use freelancers. As an employeer you don not have to pay half of the Social Security, but as a 1049 freelancers (sub-contractor) you have to pay both the normal employee % of S.S. and the employeers % of S.S., because you are basically self employeed. So it depends on what side of the line your on. Great for employeer and bad for employee.

    I would be careful putting full time employees as suc-contractors. It may not be entirley illegal, but morally it stinks. It really puts your employees at a major disavantage.

  8. #8
    Your Lord and Master, Foamy gold trophy Hierophant's Avatar
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    You do not have to pay into Social Security if you have an alternate retirement plan like an IRA or a 401K plan. Only if you don't pay don't expect to be able to draw either because your Social Security is determined by the number of quarters you paid into the system.

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    Wayne Luke
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  9. #9
    SitePoint Addict Chris Roane's Avatar
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    Hi,

    Thanks for all the advice. D3V, I don't believe that they really care how old you are. But then again, it might depend on what state you are in.

    Chris Roane


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