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Being a business

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AKKM

Junior Member
What is the name of your state (only U.S. law)? MD

Sorry for the vague title but what I wanted to know is at what point do you have to legally file as a business? I started doing powder coating as a hobby and friends told friends who told friends etc etc. Now once in awhile I have people asking me to do things for them. At what point do I legally have to become an LLC and pay at least state taxes or report the income? Is it a certain amount per month?
 


H

HomeGuru

Senior Member
AKKM said:
What is the name of your state (only U.S. law)? MD

Sorry for the vague title but what I wanted to know is at what point do you have to legally file as a business? I started doing powder coating as a hobby and friends told friends who told friends etc etc. Now once in awhile I have people asking me to do things for them. At what point do I legally have to become an LLC and pay at least state taxes or report the income? Is it a certain amount per month?
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**A: if you are making money then you are in business. You should legally file for business even under your own name as a sole proprietor. There is no law that requires your business to be an LLC. and the LLC does not trigger reporting of income and paying taxes. The trigger starts when you operate as a business.
For liability protection though you may want corporate status ie. Corporation or LLC.
 
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