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Side business

1,981 Views | 5 Replies | Last: 6 yr ago by combat wombat™
AgPT06
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AG
My wife plans to work with some local small businesses to put out a monthly newsletter and help with some email distribution. She will be paid by the advertising she can get into the letter. It will be likely $500 to $1000/month income and this will likely take a few months to even get to this amount until she gets distribution up some. Not really a huge income, but she wants to have a separate "business account" and we want to pay taxes appropriately. Not sure if worth the fees to set up an llc. How would you proceed? Just get a tax ID as a DBA? Use a CPA? Figure out how to file quarterly stuff on our own? Any free business/tax advice appreciated.
libertyag
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AG
Not a bad idea to have a separate business account to run all the revenue and expenses through. Unless liability is a concern, I wouldn't set up an LLC. If you two have no prior experience running a business then it might be money well spent to pay a CPA for an hour or two consultation so that you can know what you should do, then decide if you want to tackle it yourself or pay someone to do it.

Good luck on the venture.
jschroeder
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Go sole proprietor unless the net income becomes more than a normal yearly salary.

You won't have to pay quarterly the first year.
Ulrich
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Don't send it to me.
The Wonderer
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AG
LibertyAg and jschroeder summed it up pretty well. At <$12k a year and limited liability exposure, sole prop is likely sufficient as you aren't churning enough income to benefit from an LLC and it doesn't seem like you need the liability protection. Talk to a CPA about tax planning for the extra income and required filings.
Hhilton82
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AG
Probably obvious but you can make that $6k-$12k more lucrative by taking aggressive advantage of write off expenses of home office, supplies etc
Helped us a lot when We were young and looking for all income.
combat wombat™
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AG
Hhilton82 said:

Probably obvious but you can make that $6k-$12k more lucrative by taking aggressive advantage of write off expenses of home office, supplies etc
Helped us a lot when We were young and looking for all income.
Make sure that you are aware of the home office rules. And, with regard to being aggressive in writing off expenses, just remember that pigs get fat and hogs get slaughtered.By all means, write off all of her direct business expenses, as well as anything else she can reasonably write off... but don't write off so much that it looks wrong.
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