I’m getting confused by what I’m hearing. I called the city and county to ask about getting a business license and they both told me I didn’t need it if I was going to offer a service. I said alright and start cleaning quoting jobs, but then a lady asks me if I have a tax ID number. Well, that comes when you get a business license. Today I quoted a job for $650 at a big restaurant that I think I’ll get and he asked me if I have a W9 form. I said yes, but all of my past businesses were selling products and I thought that’s a form you fill out at the end of the year if you offer a service. I don’t even know what is.
Yes a tax id number will either be your social if your a sole proprietorship or you will have a ein# if you’re an LLC. This step should all be done when you file with the secretary of state for your fictitious name.
I paid my accountant around $350 to set up my LLC. I was sole proprietor before. Every state might be different. I am located in Central Florida. Definitely talk to an accountant. They will tell you everything you need to own a business legally in your state and or county. Blessings.
Stoneface - a W-9 is a tax form that companies must require from you if the service you perform is above a certain amount typically 600.00. It was previously called an I-9 a couple of years ago. The entire purpose of this tax form is to force small guys like us to make sure that we don’t slip through the cracks on tax reporting.
It is best for you to consult a CPA before making these decisions. State and local laws vary from State to State and municipality. Most municipalities encourage you to get a business license or occupational license as it is sometimes called.
If you bid and or perform work for large companies they will all require a W-9 even if the amount is not above the threshold. They usually have a form and will email it to you before you invoice them. You can also have one on file saved in an electronic format that you can send them.
A resource that has been helpful to me is a workbook called: Federal Income Tax for Window Cleaners by Brigitte Thompson. It would be worth your while to purchase the book from your window cleaning supplier and sit down with your CPA and discuss your needs and individual situation. It is always advantageous for you to have a conversation with a CPA that has experience in small businesses. This book has worksheets that can save a ton of time and energy helping you keep track of the little stuff that bogs everyone down.
Good luck and best wishes. The W-9 form can be downloaded from IRS website or your CPA will have them or you customer’s admin can always send it to you as well.
Some counties or cities don’t have a licenses, they just ask you to fill out a net profits return at the end of the year and they get a % of that income made in that jurisdiction. We have several areas like that, then we have others we have to pay a initial occupational fee, then every year we pay the bigger of the licensing fee or the net profit tax you owe that year. We have 10 areas we have to do this because of our service area. You can use SS or get a tax ID as a sole proprietor through the IRS online, pretty easy to do. You use that number for your W-9. We use it too for the sales tax we have to charge on our services. Anyways… like many have said a CPA could help you.
Have you priced a cpa? Can be very affordable. Hell ours dosent even require payment upfront. She just invoices us. Unless you have accounting experience I would not recommend doing business without one. Just like insurance and a crm these are just given expenses you’ll need to pay to operate your business. Things can and will start falling through the cracks and you’ll pay more in the long run to fix it.
Yea, my dad has one but I like doing it on my own. I’ve done it this way for 25 years, I’ve worked for CPA’s over the years and they seem to think I’m doing okay without one, lol. Anyways, I know it’s not for everyone but it’s just me and wife, so not complicated at all. I study up on any new tax changes to see if I can benefit from any. Have a friend too who used to own a cpa office, if I do have any questions. I just like numbers, I guess. But I throughly make sure all is legal as I’m paranoid about that, some of the reason I do it myself too, some of those guys do shady stuff. Like I said, just me…