This would be an issue , it is very hard for people under 18 to run a company as you will need a EIN. I know that you can have an LLC at any age though. Since you have to be 18 to legally sign a contract, you can't get an EIN, meaning paypal will limit you to 200 transactions or $20,000 yearly I believe.
I don't even think you can get a PayPal under 18. So after Mr.Greek turns 18 he can get the stuff you said and do what he wants to do! As for taxes, I don't even know or actually want to know at all...
This would be an issue , it is very hard for people under 18 to run a company as you will need a EIN. I know that you can have an LLC at any age though. Since you have to be 18 to legally sign a contract, you can't get an EIN, meaning paypal will limit you to 200 transactions or $20,000 yearly I believe.
Correct, if you do not go over this limit, you do not need to file any sort of income. However, if you go over next year, you will have to show both next year's income, as well as your previous year's. I would recommend starting a PNL spreadsheet now.
Here's a link to where you can get an EIN (There is no age requirement for an EIN, as Entel has incorrectly said before): http://www.irs.gov/B...er-(EIN)-Online
Be aware that you will also need to file a DBA in your county, which may or may not include having to report it in your local newspaper (This is coming from my local laws in the County of Santa Clara, California; your local laws may be different).
You will also need to file for a business license in your city.
Lastly, you might have to get a sales permit from your state (In California, you will only need a sellers permit if you are selling tangible items that need to have sales tax added to them).
I would HIGHLY recommend getting to know a trustworthy CPA, and just set up an appointment to talk for an hour and answer your questions.
Also, know the difference between a corporation, LLC vs a partnership, sole prop. Some types may be more costly than others.
Depending on your local laws, it might take $100-500+ to get all the legal paperwork done.
As far as contracts go, you can sign a contract while being under the age of 18, ONLY IF it is signed under the company name, not your own.
Correct, if you do not go over this limit, you do not need to file any sort of income. However, if you go over next year, you will have to show both next year's income, as well as your previous year's. I would recommend starting a PNL spreadsheet now.
Here's a link to where you can get an EIN (There is no age requirement for an EIN, as Entel has incorrectly said before): http://www.irs.gov/B...er-(EIN)-Online
Be aware that you will also need to file a DBA in your county, which may or may not include having to report it in your local newspaper (This is coming from my local laws in the County of Santa Clara, California; your local laws may be different).
You will also need to file for a business license in your city.
Lastly, you might have to get a sales permit from your state (In California, you will only need a sellers permit if you are selling tangible items that need to have sales tax added to them).
I would HIGHLY recommend getting to know a trustworthy CPA, and just set up an appointment to talk for an hour and answer your questions.
Also, know the difference between a corporation, LLC vs a partnership, sole prop. Some types may be more costly than others.
Depending on your local laws, it might take $100-500+ to get all the legal paperwork done.
As far as contracts go, you can sign a contract while being under the age of 18, ONLY IF it is signed under the company name, not your own.
I've read in multiple places online that you need to be 18 to file for a EIN. Even if that isn't true, be careful because since a EIN is linked to your social security number, you can destroy your credit history(I think)
Correct, if you do not go over this limit, you do not need to file any sort of income. However, if you go over next year, you will have to show both next year's income, as well as your previous year's. I would recommend starting a PNL spreadsheet now.
That's not true. Any income must be reported. It doesn't matter if you get a 1099-Misc or not.
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https://allgamer.net/ - Minecraft, KVM VPS, and Dedicated Server Hosting
Email/MSN: clinton -at- allgamer -dot- net
AIM: Clinton4664 | Skype: clinton_collins I am a representative of AllGamer
I've read in multiple places online that you need to be 18 to file for a EIN. Even if that isn't true, be careful because since a EIN is linked to your social security number, you can destroy your credit history(I think)
That is correct. If you own the majority of a corporation or you are a sole prop / partnership, your credit history is personally tied. There are no age restrictions to apply for an EIN, however.
That's not true. Any income must be reported. It doesn't matter if you get a 1099-Misc or not.
I agree, however, if you do not fall over the 20k & 200 order limit, you do not need to report anything until you do. Be aware that this is not on a yearly basis, and it is rolled over to the next year, which is what I was saying at the end.
That is correct. If you own the majority of a corporation or you are a sole prop / partnership, your credit history is personally tied. There are no age restrictions to apply for an EIN, however.
I agree, however, if you do not fall over the 20k & 200 order limit, you do not need to report anything until you do. Be aware that this is not on a yearly basis, and it is rolled over to the next year, which is what I was saying at the end.
Hmm seems your right about the EIN, there is no age limit...
With regards to federal and state taxes, would I be required to file this on a tax return (considering I am 17 and still a minor) as earned income?
Also, what would the tax rate be roughly if I registered an LLC and had less than $10,000 income per year?
Some examples of other established hosts and what they have done regarding U.S. taxes would be nice to see.
Contact me at [email protected]
Correct, if you do not go over this limit, you do not need to file any sort of income. However, if you go over next year, you will have to show both next year's income, as well as your previous year's. I would recommend starting a PNL spreadsheet now.
Here's a link to where you can get an EIN (There is no age requirement for an EIN, as Entel has incorrectly said before):
http://www.irs.gov/B...er-(EIN)-Online
Be aware that you will also need to file a DBA in your county, which may or may not include having to report it in your local newspaper (This is coming from my local laws in the County of Santa Clara, California; your local laws may be different).
You will also need to file for a business license in your city.
Lastly, you might have to get a sales permit from your state (In California, you will only need a sellers permit if you are selling tangible items that need to have sales tax added to them).
I would HIGHLY recommend getting to know a trustworthy CPA, and just set up an appointment to talk for an hour and answer your questions.
Also, know the difference between a corporation, LLC vs a partnership, sole prop. Some types may be more costly than others.
Depending on your local laws, it might take $100-500+ to get all the legal paperwork done.
As far as contracts go, you can sign a contract while being under the age of 18, ONLY IF it is signed under the company name, not your own.
I've read in multiple places online that you need to be 18 to file for a EIN. Even if that isn't true, be careful because since a EIN is linked to your social security number, you can destroy your credit history(I think)
Contact me at [email protected]
That's not true. Any income must be reported. It doesn't matter if you get a 1099-Misc or not.
https://allgamer.net/ - Minecraft, KVM VPS, and Dedicated Server Hosting
Email/MSN: clinton -at- allgamer -dot- net
AIM: Clinton4664 | Skype: clinton_collins
I am a representative of AllGamer
That is correct. If you own the majority of a corporation or you are a sole prop / partnership, your credit history is personally tied. There are no age restrictions to apply for an EIN, however.
I agree, however, if you do not fall over the 20k & 200 order limit, you do not need to report anything until you do. Be aware that this is not on a yearly basis, and it is rolled over to the next year, which is what I was saying at the end.
Hmm seems your right about the EIN, there is no age limit...
Contact me at [email protected]