What is the name of your state? MO
I have been researching advantages of various ways of setting myself
up as a business entity - incl C & S Corps, and as an LLC electing to
be taxed as an S Corp.
As those apparently entail expenses and disadvantages of their own,
incl the double taxation of a C Corp, I started looking at Sole Proprietorships in spite of the higher individual rate of tax on earnings.
I work through specialty agencies providing quality control oversight on large construction projects. To this point, I have normally been paid as an individual, however I do know people in my line of work that "dba" - their name, apparently as a sole proprietor in order to realize some additional deductions for tax purposes.
My question has to do with what is required to formally start a sole proprietorship, and do I have to change anything in the manner in which I am paid - i.e. do I have to file any forms with anyone, and do my paychecks have to reflect something other than my name?
I would hire my wife as my bookkeeper, and she would be the only employee other than myself (looking at the business expense of providing her with health insurance and including myself on her policy, etc).
Also, since it is going on 3 months into this year, could I declare myself a sole proprietor for the entire year for tax purposes?
Thanks very much!!
I have been researching advantages of various ways of setting myself
up as a business entity - incl C & S Corps, and as an LLC electing to
be taxed as an S Corp.
As those apparently entail expenses and disadvantages of their own,
incl the double taxation of a C Corp, I started looking at Sole Proprietorships in spite of the higher individual rate of tax on earnings.
I work through specialty agencies providing quality control oversight on large construction projects. To this point, I have normally been paid as an individual, however I do know people in my line of work that "dba" - their name, apparently as a sole proprietor in order to realize some additional deductions for tax purposes.
My question has to do with what is required to formally start a sole proprietorship, and do I have to change anything in the manner in which I am paid - i.e. do I have to file any forms with anyone, and do my paychecks have to reflect something other than my name?
I would hire my wife as my bookkeeper, and she would be the only employee other than myself (looking at the business expense of providing her with health insurance and including myself on her policy, etc).
Also, since it is going on 3 months into this year, could I declare myself a sole proprietor for the entire year for tax purposes?
Thanks very much!!