X-Phil
Imported Account
Jan 20, 2001, 12:27 PM
Post #5 of 6
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Pam --
There are three levels to it: federal, state, and local.
For the feds -- if you want to set up an unincorporated business so that you can have separate books, bank account, etc., all you need is a "TIN" (or EIN) -- a taxpayer ID number.
This is FREE for the asking.
Then, when you file taxes each year, you report your business income (for the Feds) on a Schedule C, which is a pretty easy form to deal with.
The Feds don't really care what you do for a living, just as long as you pay taxes.
The next level is STATE. This depends on what state you live in. Here in New York, with a federal tax ID number, you can set up a special bank account for your business.
If you run your business under a different name than your own, you need to register the business name with the county you're doing business in.
There is a fee for this that keeps going up but it's still quite modest. You register with the county clerk and get a certificate. You then use that, with your federal tax ID number, to start your bank account.
Again, they don't care what you do, as long as your papers are filed.
Finally, there's local. I'm not aware of any licensing done here in New York for freelance videographers... but any little town or village can come up with some screwy rules. Ask someone else in the business (locally) before you get involved with the bureaucrats. (You'll get a straighter answer.)
But, for the most part, if you're paying your taxes and not stepping on anyone's toes, the powers to be won't step on yours.
-- Good luck!
-- Phil Goutell
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