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  #1  
Old 06-28-2002, 06:03 PM
Jon99 Jon99 is offline
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Join Date: Jun 2002
Location: Illinois
Posts: 375
Yet another question....

First off, thank you very much to all that have helped me with my finance, mower and trailer questions, you guys are great!!!!

Now that my ideas are coming together of what I want the business to look like and the image I want to promote, I need some advice on what I need to do, if anything, to get the ball rolling from a legal POV... If the business is a sole prop., is there anything I need to do???? Do I need a state tax ID number??? Do I need anything special when I set up a business checking account???

Thanks again...
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  #2  
Old 06-28-2002, 06:11 PM
MATTHEW MATTHEW is offline
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Location: NE OHIO
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Yes, you need a State tax ID #. Very cheap.
As far as a bank account, title it in the business name and NEVER put any money into it unless it is income from the business. You can spend it on whatever you want.
Good luck.
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  #3  
Old 06-28-2002, 06:12 PM
Rooster Rooster is offline
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Jon99,

All good poiints.

Check with an accountant, and you local city hall for requirements would be the first place to start IMO.

Rick
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  #4  
Old 06-28-2002, 06:21 PM
Jon99 Jon99 is offline
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matthew- You mention to never put outside cash into the checking account... How about cash that I start the business with??? Or should I pay for my start up expenses out of my pocket w/o running it thru the business account???
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  #5  
Old 06-28-2002, 09:23 PM
MATTHEW MATTHEW is offline
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You can deposit capitol if you want. It just needs to be earmarked as such.

If you want to do your own accounting as I do, keep deposits restricted to income. That way it is easier to tabulate income to calculate sales tax and profits.

I would suggest using your personal checking account to pay for equipment up front. It makes no difference where expenses get paid from as long as you have receipts.
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  #6  
Old 06-28-2002, 10:26 PM
bruces bruces is offline
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Location: Independence, MO
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Quote:
Originally posted by MATTHEW
You can deposit capitol if you want. It just needs to be earmarked as such.

If you want to do your own accounting as I do, keep deposits restricted to income. That way it is easier to tabulate income to calculate sales tax and profits.

I would suggest using your personal checking account to pay for equipment up front. It makes no difference where expenses get paid from as long as you have receipts.
It really doesn't matter what you deposit in the account if you have good records. If you deposit other than income (start up capital, loans, etc., make it on a completely separate deposit and note the source on the deposit.

As far as using your personal account to pay for the equipment up front, I don't see any reason to do that. If you have the business account, deposit the funds in there and then pay for everything from the business account. That way all of your business transactions are captured in one account. That will be easier than going through multiple accounts at the end of the year when you are trying to do your taxes.

As far as a state id #, that will be determined by what you are doing, if you have payroll, etc. In Missouri, since I am operating as a sole proprietor and have no employees, I don't need an id #.

Check with an accountant or the state department of revenue. They usually have information on their web site.

You probably also need a city or county occcupational license for the localities you plan to do business in.

Good luck!
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  #7  
Old 06-29-2002, 04:40 AM
Jon99 Jon99 is offline
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Join Date: Jun 2002
Location: Illinois
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Bruce- As for the local license, I thought thats something I would need as well, but the guy I work part time for is always complaining that he wished the county would have such a license, to keep the scrubs out...

As for an accountant, I will take care of that, I need to use my finance degree for something I suppose....

Speaking of accounting, will a software package like Quicken or Peachtree work well enough??

Thanks again, Jon...
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  #8  
Old 06-29-2002, 01:15 PM
bruces bruces is offline
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Location: Independence, MO
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I would use Quickbooks, not Quicken

Quote:
Originally posted by Jon99
Bruce- As for the local license, I thought thats something I would need as well, but the guy I work part time for is always complaining that he wished the county would have such a license, to keep the scrubs out...

As for an accountant, I will take care of that, I need to use my finance degree for something I suppose....

Speaking of accounting, will a software package like Quicken or Peachtree work well enough??

Thanks again, Jon...
I would use Quickbooks. Peachtree will work also, but most prefer Quickbooks. That finance degree should serve you well.
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  #9  
Old 06-29-2002, 09:43 PM
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mowerman90 mowerman90 is online now
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Save some bucks and try Medlin Shareware (www.medlin.com) All you really need to get started is the Accounts Recievable and Invoicing module. If you like it it's only $38. I've been using it for the last 12 years.
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