Starting my own small business

Hello DAP

As you may know I just recently got approved for DACA and is in the process of obtaining an SSN and DL. I've always had a plan to start my own computer maintenance and repair business so I am wondering what documents I would need to start one. My plan is to start part-time repair shop in my garage and/or be an on call mobile technician, where I go to client's location to service their needs. I did some research and became rather confused as I thought that I'll only need to register a business name at the city clerk.

Are there any dreamers out there that can help me obtain the necessary information to start my dream?

So far this is what I plan to do next week

Register a Fictitious Business Name at the city hall clerk.

Questions?

Do I need an EIN?
What kind of business licenses do I need and where do I obtain them?


Thanks in advance


PS: I live in CA and the business will only have 1 employee ( me )

Someone answered your question already. There is a dreamer who was doing this before DACA. All I remember is the DBA and the Articles.

It depends on the structure of the business. Do you plan on starting a sole proprietorship, or a type of distinguishable entity with separate liabilities (and assets) from the principal owner (you).

An EIN is used mainly for tax purposes. You don't *need* an EIN if you plan on structuring the firm as a sole proprietorship. Your SSN acts as the EIN in this case, though I recommend you do apply for an EIN to protect your SSN whenever possible.

Go to sba.gov they should answer most of your question.

Business plan.
Pricing strategy.

kickstarter

Kickstarter is a great platform for financing start ups, not running a PC repair business.

After further research, I concluded that yes I am planning to start my business as a sole-proprietorship in CA.

Is the tax reporting based on honor code or is there a fix tax fee for sole proprietors?

Thanks again

All income and expenses generated by the business are reflected on either Schedule C (Profit or Loss from Business) or Schedule C-EZ (Net Profit from Business). Whichever one you elect to use, it must be included as part of your regular 1040.

The IRS will tax you on any profit, regardless of how much money you actually withdraw from the business. In other words, even if you leave money in the company's bank account at the end of the year (for instance, to cover future expenses or expand the business), you must pay taxes on that money. As such, you can deduct any business expenses relating to that profit -- operating expenses, travel expenses, etc.

Another important aspect you have to understand is paying self employment taxes. Self-employment taxes are equivalent to the payroll tax for employees of a business. So while an employee pays into SS and Medicare through payroll tax cuts, sole props pay them during income tax season. Issue at hand here is that employees only pay half the contribution (since the other half is matched by the employer), while sole proprietors must pay the entire amount themselves (although you can deduct half of the cost). Use Schedule SE along with your Schedule C/C-EZ and 1040.

In addition, you need to make estimated tax payments. You make these payments to the IRS and your state agency (if applicable) periodically during the course of the calendar year prior to filing your tax return. These are your general withholdings -- FICA, etc.

You can find more information here.. The first year doing so may seem daunting, but it's all rather simple once you get going on it.

As for deducting expenses, keep a well documented paper trail of your expenses -- receipts, confirmations, invoices, etc.

EDIT: I suppose it is the "honor" code. But bear in mind, that on the (off) occasion you do get audited, prepare for some heavy fees (and possibly even jail time) if you are understating your revenue or profits.