Sole Proprietor / Setting up as Freelance
Dec 8th 2011, 11:56 am
#1
Lump Of Coal
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Joined: Nov 2011
Location: Home or Work.
Posts: 148
Sole Proprietor / Setting up as Freelance
Hey All,
Had a "quick" look through the forums but just wondering if anyone has any experience or knowledge about setting yourself up as a sole proprietor in NY?
I've been researching online and think I need a Certificate of Conducting Business as a Sole Proprietor, I need it notorized(?) and then send it to the County Clerk then I'm good to go.
Does anyone know if I can use my SSN as a Tax ID or do I need a different Business Tax ID?
Also, does anyone know and/or use a good accountant/small business advisor in NY who can help a small business/freelance photographer.
Cheers!
Had a "quick" look through the forums but just wondering if anyone has any experience or knowledge about setting yourself up as a sole proprietor in NY?
I've been researching online and think I need a Certificate of Conducting Business as a Sole Proprietor, I need it notorized(?) and then send it to the County Clerk then I'm good to go.
Does anyone know if I can use my SSN as a Tax ID or do I need a different Business Tax ID?
Also, does anyone know and/or use a good accountant/small business advisor in NY who can help a small business/freelance photographer.
Cheers!
Dec 8th 2011, 2:08 pm
#2
BE Enthusiast
Joined: Nov 2007
Posts: 906
Re: Sole Proprietor / Setting up as Freelance
Legalzoom can setup the sole proprietorship for you. I used them, they are cheap and good.
Yes, you can use your own SSN number.
You will need to sign documents in front of a Notary Public. The are dozens of these people in my town....most UPS stores have someone who can do that. My cost here is $6 per document.
Yes, you can use your own SSN number.
You will need to sign documents in front of a Notary Public. The are dozens of these people in my town....most UPS stores have someone who can do that. My cost here is $6 per document.
Last edited by cranston; Dec 8th 2011 at 2:11 pm.
Dec 8th 2011, 2:14 pm
#3
Lump Of Coal
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Joined: Nov 2011
Location: Home or Work.
Posts: 148
Re: Sole Proprietor / Setting up as Freelance
Legalzoom can setup the sole proprietorship for you. I used them, they are cheap and good.
Yes, you can use your own SSN number.
You will need to sign documents in front of a Notary Public. The are dozens of these people in my town....most UPS stores have someone who can do that. My cost here is $6 per document.
Yes, you can use your own SSN number.
You will need to sign documents in front of a Notary Public. The are dozens of these people in my town....most UPS stores have someone who can do that. My cost here is $6 per document.
I've been reading about sole proprietor and also LLC, do you think LLC is worth it or are their companys that offer Liability Insurance for self employed people? I'm not really sure i'll be doing anything that might end up with someone sueing me...
Dec 8th 2011, 2:49 pm
#4
Account Closed
Joined: Mar 2004
Posts: 2
Re: Sole Proprietor / Setting up as Freelance
Of course you can buy Insurance as a sole proprietor, a LLC gives you an additional layer of protection. What basis are you looking at as being taxed.
Dec 8th 2011, 2:53 pm
#5
Lump Of Coal
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Joined: Nov 2011
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Posts: 148
Re: Sole Proprietor / Setting up as Freelance
I'm not looking it from a taxation point of view yet, do you have any reccomendations? I'm totally clueless when it comes to the US tax system, that's why I was looking for a decent accountant to talk too...
Dec 8th 2011, 4:13 pm
#6
Deep in the woods of CT
Joined: Feb 2010
Posts: 7,002
Re: Sole Proprietor / Setting up as Freelance
Sorry I don't have anyone to recommend in your area -- but before you do anything regarding a company/proprietorship you do need to talk to an accountant. It may be totally unnecessary for you to set up any kind of company, depending upon what kind of self-employed business operations you are planning.
Dec 8th 2011, 4:21 pm
#7
Lump Of Coal
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Joined: Nov 2011
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Posts: 148
Re: Sole Proprietor / Setting up as Freelance
Sorry I don't have anyone to recommend in your area -- but before you do anything regarding a company/proprietorship you do need to talk to an accountant. It may be totally unnecessary for you to set up any kind of company, depending upon what kind of self-employed business operations you are planning.
Thanks nutmegger. It'll be Photography & Reprographics. Mainly working from home or at some one elses studio/business.
Dec 8th 2011, 4:33 pm
#8
Deep in the woods of CT
Joined: Feb 2010
Posts: 7,002
Re: Sole Proprietor / Setting up as Freelance
I've worked under similar circumstances as a 1099 independent contractor for over 25 years and it has never been necessary to do anything other than pay my taxes. Some towns do want you to register as having a home business -- but that allows them to collect property tax on your office furniture/equipment!
Dec 8th 2011, 4:37 pm
#9
Lump Of Coal
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Re: Sole Proprietor / Setting up as Freelance
I've worked under similar circumstances as a 1099 independent contractor for over 25 years and it has never been necessary to do anything other than pay my taxes. Some towns do want you to register as having a home business -- but that allows them to collect property tax on your office furniture/equipment!
eh?Think my first port of call will be an accountant and the Manhattan small business development center to see if I can get any advice. No way are they taxing my stuff
Dec 8th 2011, 6:09 pm
#10
BE Site Lead
Joined: Aug 2004
Location: MA, USA
Posts: 92,170
Re: Sole Proprietor / Setting up as Freelance
Just if you wanted to save a couple bucks
Dec 8th 2011, 7:13 pm
#11
Account Closed
Joined: Mar 2004
Posts: 2
Re: Sole Proprietor / Setting up as Freelance
Probably no real biggie in your case, but it is a CPA you need, anyway and have a look at a S Corp.
Dec 9th 2011, 9:18 am
#13
Lump Of Coal
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Joined: Nov 2011
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Re: Sole Proprietor / Setting up as Freelance
I'm guessing CPA is an accountant of sorts?
*off to google I go*
Dec 9th 2011, 1:44 pm
#14
Deep in the woods of CT
Joined: Feb 2010
Posts: 7,002
Re: Sole Proprietor / Setting up as Freelance
A CPA is a Certified Public Accountant -- the usual qualification for an accountant in the US. As you have probably now found, this is what an S corp is (again, I'm not sure that this is going to be necessary for you, so talking to a CPA before you do anything is important):
S corporations are corporations that elect to pass corporate income, losses, deductions and credit through to their shareholders for federal tax purposes. Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. This allows S corporations to avoid double taxation on the corporate income. S corporations are responsible for tax on certain built-in gains and passive income.
To qualify for S corporation status, the corporation must meet the following requirements:
Be a domestic corporation
Have only allowable shareholders
including individuals, certain trust, and estates and
may not include partnerships, corporations or non-resident alien shareholders
Have no more than 100 shareholders
Have one class of stock
Not be an ineligible corporation i.e. certain financial institutions, insurance companies, and domestic international sales corporations.
In order to become an S corporation, the corporation must submit Form 2553 Election by a Small Business Corporation (PDF) signed by all the shareholders.
S corporations are corporations that elect to pass corporate income, losses, deductions and credit through to their shareholders for federal tax purposes. Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. This allows S corporations to avoid double taxation on the corporate income. S corporations are responsible for tax on certain built-in gains and passive income.
To qualify for S corporation status, the corporation must meet the following requirements:
Be a domestic corporation
Have only allowable shareholders
including individuals, certain trust, and estates and
may not include partnerships, corporations or non-resident alien shareholders
Have no more than 100 shareholders
Have one class of stock
Not be an ineligible corporation i.e. certain financial institutions, insurance companies, and domestic international sales corporations.
In order to become an S corporation, the corporation must submit Form 2553 Election by a Small Business Corporation (PDF) signed by all the shareholders.
Dec 9th 2011, 3:18 pm
#15
Lump Of Coal
Thread Starter
Joined: Nov 2011
Location: Home or Work.
Posts: 148
Re: Sole Proprietor / Setting up as Freelance
A CPA is a Certified Public Accountant -- the usual qualification for an accountant in the US. As you have probably now found, this is what an S corp is (again, I'm not sure that this is going to be necessary for you, so talking to a CPA before you do anything is important):
S corporations are corporations that elect to pass corporate income, losses, deductions and credit through to their shareholders for federal tax purposes. Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. This allows S corporations to avoid double taxation on the corporate income. S corporations are responsible for tax on certain built-in gains and passive income.
To qualify for S corporation status, the corporation must meet the following requirements:
Be a domestic corporation
Have only allowable shareholders
including individuals, certain trust, and estates and
may not include partnerships, corporations or non-resident alien shareholders
Have no more than 100 shareholders
Have one class of stock
Not be an ineligible corporation i.e. certain financial institutions, insurance companies, and domestic international sales corporations.
In order to become an S corporation, the corporation must submit Form 2553 Election by a Small Business Corporation (PDF) signed by all the shareholders.
S corporations are corporations that elect to pass corporate income, losses, deductions and credit through to their shareholders for federal tax purposes. Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. This allows S corporations to avoid double taxation on the corporate income. S corporations are responsible for tax on certain built-in gains and passive income.
To qualify for S corporation status, the corporation must meet the following requirements:
Be a domestic corporation
Have only allowable shareholders
including individuals, certain trust, and estates and
may not include partnerships, corporations or non-resident alien shareholders
Have no more than 100 shareholders
Have one class of stock
Not be an ineligible corporation i.e. certain financial institutions, insurance companies, and domestic international sales corporations.
In order to become an S corporation, the corporation must submit Form 2553 Election by a Small Business Corporation (PDF) signed by all the shareholders.
