[olug] Part-time Self Employment (Side Jobs)

[Blaufuss, Shane]

I used to run a consulting company, and this part gets a little tricky...
 
If you are doing a DBA, you need to register for a Tax ID number UNLESS
you're using your name in the business name (as Robert mentioned below), and
you're income is limited to $1 million IIRC.  Unfortunately, that limit was
NEVER a problem for me.  Any business you conduct will be under your Social
Security Number, which is why your assets and the company's assets will be
lumped together in the event of a legal matter.  
 
Your chamber of commerce will have plenty of information on the advantages
and disadvantages between Corp, LLC, and Sole Proprietorship (I may have
brought that up already), as well as business startup plans, marketing
information, financial requirements, and sources of local startup guidance.
 
However, IANAL[0] and the information above was what I was given in 1996 or
so.
 
 
 
[0] I Am Not A Lawyer

-----Original Message----- 
From: Jacobs, Robert A. [mailto:RAJACOBS at northropgrumman.com] 
Sent: Tue 4/22/2003 5:26 PM 
To: Omaha Linux User Group 
Cc: 
Subject: RE: [olug] Part-time Self Employment (Side Jobs)




>Do you have to register yourself as a business with the state 
>or anything? 
> 

No.  You do not. 

...but there are advantages to getting a business license. 

If you do not get a business license, you are automatically 
considered a "DBA" (Doing Business As) business 
(e.g. Eric Penne d.b.a. Eric Penne's Consulting). 

The implications are: if somebody sues you, there is no 
difference between your personal assets and the assets of 
your company in the eyes of the law. 

If you incorporate (fees vary), you have some higher 
requirements on running your business but your personal 
assets are protected.  There are other business options 
available (LLC -- Limited Liability Corporation, etc.). 

The "Portable MBA in Finance & Accounting" is an EXCELLENT book to 
have on hand (I HATE accounting courses but I kept this 
book from a graduate course in managerial accounting I had to 
take just because it had such a good overview of accounting practices). 

As one poster pointed out, check out SCOREs -- they'll be 
able to provide you with a ton of good information and explain 
the different options to you. 

Rob 
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