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I have a website that has almost no income. its mainly a hobby, but I am looking to get a business license because in the video game world you must have one to attend events.
My problem is I have no idea what type to get.
I want the business to have its own name, and I want to have control over it.
I will have people "working" for me, but understand there is no income.
I also want to be able to get tax deductions for traveling costs.
...I am looking to get a business license because in the video game world you must have one to attend events. My problem is I have no idea what type to get.
I'm gonna take a wild guess here and say they'll want to see a license that directly relates to video gaming. Owning an arcade might seem to work but I suspect that isn't right.
It appears as if you can check the availability of your business name on this web site.
If I were in your shoes I would consider starting out as a sole proprietorship with a business trade name. You might consider applying for an EIN to use in your business (to protect your social security number).
The way it works in Tennessee is you register your DBA name with the state. If you are not subject to sales tax collection you do not need to worry about registering with the department of revenue.
In Tennessee you can go to the county clerks office to register your business- Not sure how it is done in Indiana but it is probably similar.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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People get business licenses to be able to buy wholesale, and the states
don't like that. Check the regulations, you may find that they require you to show a certain minimum sales amount or will cancel your license. They don't care if you make a profit, just that you are actually a business.
Well after reading that I still have some questions.
It seems like I want to make an LLC.
My question is can I still use my traveling costs as a deductible , but more importantly can the other people on my team use their traveling costs as a deductible.
Since the LLC wont have much if any income, im guessing i will still have to file a return, but with no income.
To deduct travel, you must have a valid office as a start point. For most people that means a dedicated room in the house that is devoid of all personal stuff, to fit the tax code. A trip direct from home to another city is not generally deductible as travel.
To deduct travel, you must have a valid office as a start point. For most people that means a dedicated room in the house that is devoid of all personal stuff, to fit the tax code. A trip direct from home to another city is not generally deductible as travel.
You are discussing two separate tax issues.
1) In order to take a home office deduction you must meet the requirements you mentioned.
2) You do not need to meet the home office deduction requirements to classify your home as your principle place of business. If your principal place of business is your home you can deduct travel to client sites or meetings.
You do not need an "official" office- you just need a principle place of business.
1) In order to take a home office deduction you must meet the requirements you mentioned.
2) You do not need to meet the home office deduction requirements to classify your home as your principle place of business. If your principal place of business is your home you can deduct travel to client sites or meetings.
You do not need an "official" office- you just need a principle place of business.
One thing I suggest anyone engaged in business do is purchase a small business tax guide. Unless you are going to engage the services of a CPA for tax planning the tax guide is very handy to own.
Kipplinger has a good one (easy to read) which would address the questions posed by the O.P. regarding what type of business entity would be the best choice.
If you want really detail legalese the the Federal tax guide put out by Thomson- Reuters is a better choice.
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