RE: legalities

You can start up and do what ever you wish... until you start making money
at it, and then the rules change
some. Before you make money it is a hobby. You can register a name with your
state, county or whatever, and even open up a bank account in that name...
(I have done that in New York)

You can charge off expenses against income generated by this "hobby" on your
tax form, but you cannot take charges against other income and call it a
business loss.

You can always be Joe Somebody doing business as "Joe's super graphics and
Web Works."
But income is income and must be reported and taxed, and if you have
employees then it gets more complicated.
A home office is a very dicey thing these days with the IRS, you probably do
not want to claim it as a tax deduction because that will only attract
attention to yourself. If you can show that this is a viable income
producing business, and that the office and its accouterments are used
exclusively for business, and if the charge for this is reasonable, then yes
deduct it.

When you work for yourself in this manner, your own social security number
is what you also use for your business, but when you separate out your
business affairs from your personal affairs, then you need a separate tax
number for the business... this also impacts on your liabilities, but as a
sole proprietorship, you are still 100% liable for everything until such a
time as you set up a corporation. Long before this, you will need a lawyer
to counsel you.

If you can still understand this, and I haven't confused you, then write
back and I will try some more.

The short answer is, yes you can work for yourself without any red tape, but
the red  tape is there just waiting for you!

Br. Elias

-----Original Message-----
From: owner-hwg-basics(at)hwg.org [mailto:owner-hwg-basics(at)hwg.org]On
Behalf Of Jenson
Sent: Sunday, December 12, 1999 16:52
To: hwg-basics(at)hwg.org
Subject: legalities


I keep hearing about people here and around that have clients for their
own personal business'  What are the legalities of having your own
personal online web design business.  Do you have to register with your
resident state for taxes or things like that.  Or can you just start a
company up online and never have to worry about anything.

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