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-   -   Legal Requirements for Starting a Painting Business (https://www.askmehelpdesk.com/showthread.php?t=405660)

  • Oct 13, 2009, 04:46 PM
    bbugleboy
    Legal Requirements for Starting a Painting Business
    I live in Pa. and I want to turn my side work into a small business. I'm a painter and I'm not sure what's required to be a legal tax paying self employed painter. I will 1099( sub contract) any help. I just need info on registering as self employed and getting a federal tax # for a small business.

    Thanks for any help
  • Oct 17, 2009, 05:32 PM
    Clough
    Hi, bbugleboy!

    Since your question has so much to do with the tax aspect of a small business, I've moved it to the Taxes forum topic area where it will be more likely to be noticed and addressed by our Tax Experts.

    Thanks!
  • Oct 19, 2009, 12:32 AM
    MukatA

    Unless you have regular employee, you do not need EIN (Employer Identification Number). As tax ID you can use your SSN.
    You may need city business license. Contact your city office. You will also know any other requirement for "painter" business.
  • Oct 19, 2009, 08:12 AM
    Five Rings

    In this circumstance I must reluctantly disagree with MukatA.

    You will want to create a limited liability company (LLC) and check the box for "disregarded entity". This serves two purposes:
    1. If you are sued in the course of conducting your business they cannot take away everything you own.
    2. You are simply taxed as a sole propriator

    See:
    Limited Liability Company (LLC)
    Forming a Limited Liability Company (LLC)
    http://www.irs.gov/pub/irs-pdf/f8832.pdf

    You must get an EIN after you establish your LLC; this is easy and you can do it over the internet.
    https://sa1.www4.irs.gov/modiein/individual/index.jsp
  • Oct 19, 2009, 12:51 PM
    AtlantaTaxExpert
    Five Rings has a valid point about registering as a LLC, which is a business entity designed to shield your personal assets from litigation.

    You can also choose to incorporate as a Subchapter S corporation, which is a bit more complicated but, long-term, offers advantages that are not available under the LLC.

    There are advantages and disadvantages to each business model.

    A third option is to in fact run the business as a sole proprietorship, but be sure to purchase the business liability insurance needed to protect your personal assets. The costs of such insurance varies with the type of business involved.

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