<p>Hello Parents,</p>
<p>Although this question does not involve school (I am already a college junior) I think that this is the place where it will get the best advice. What are the steps one should take when they want to start a home business? Is there paperwork that must filled out even though it will be only casual while I am still in school? I tried looking online but everything was very confusing and I do not know where to start. </p>
<p>Thanks for your help guys…:)</p>
<p>It really depends on what you plan to do. If this just involves you and you’re thinking of yourself as a self employed person, you will probably end up filing a schedule C for tax purposes and only need your SS#. You will want to set up a business checking account to run all your income and expenses through and keep very good records. Check for any registration requirements to do business within the state you will be doing operating.</p>
<p>If you anticipate any employees or plan to work with anyone else, that’s a whole different story. You will want to establish some sort of entity with a separate EIN. If this is the case, you would be best served by finding a good CPA who can give you some direction on the best way to structure your business. It will cost you a bit up front, but save you a lot of grief in the long run.</p>
<p>REALLY depends on what the business is.</p>
<p>Thanks for the help. It would definitely be an individual business as it is more of an art that I want to sell (cake decorating). Do you know where I can find state registration requirements? Is there a website for this information?</p>
<p>If you sell things you might need a vendor’s license. (You do in NY.) If you sell services you only need to file the Schedule C. And yes, do keep good records, lots of things are deductible. In fact I’d read the IRS publications about business expenses before getting started.</p>
<p>I checked out the Nolo book series from the library, there are books on how to get incorporated for you state.
<a href=“http://www.nolo.com/product.cfm/ObjectID/D1092633-48FE-489E-B8C4E6E59542339C/111/[/url]”>http://www.nolo.com/product.cfm/ObjectID/D1092633-48FE-489E-B8C4E6E59542339C/111/</a></p>
<p>I used all the forms in one book to start a business and I did not need a lawyer. I used Quickbook to do the bookkeeping.</p>
<p>Also check this out also for the uni 401K, very useful, better than SEP
<a href=“http://www.uni401k.com/faq.php[/url]”>http://www.uni401k.com/faq.php</a></p>
<p>you should probably also look into your state and county health department regulations, since you’re dealing with food. </p>
<p>running a food-based business out of your home can be quite tough as the restrictions are very particular. it might be worthwhile to contact your local chamber of commerce or community development coalition (CDC)–some of them have commerical kitchens that small businesses can rent out.</p>
<p>also, if you have a law school in your area, some of them have small business clinics that could help you with the paperwork involved in starting a business. this could be especially helpful if you take on employees, incorporate, or do other more complicated things.</p>
<p>finally, you should probably at least think about insurance. we live in such a litigious society and were someone to claim to have gotten food poisoning or something after eating one of your cakes, it could be a huge and potentially expensive headache.</p>