Who gets hit harder with taxes? Which is easier to file? From my research I think the LLC is easier to file (through personal taxes), but it seems complicated to set up.

I'm going to use a tax service for 2012 but I haven't gotten my business license yet because I'm not sure how to form my business. I'm going to be the sole owner and operator, offering transcription and general administrative services until I get up and going and further my skills.

I'm so confused! I can't file for an EIN until Jan 2 either. So I can't start a website until after my EIN and business license are in place either right?

Please help!!

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Maryann Matas, Seashore Transcription & Typing Services
Virtually Partnering in Business for Your Success

Hi Maryann,
If you use a tax service for 2011 taxes, H & R Block is a good one.
Starting a Virtual Assistant business is one of the easiest to start.
Tax form can be "Schedule C"as an Independent Contractor or if you already worked for an employer you can add with your w-2 forms.
A Business license can wait for awhile it depends where would you be working from home or an office in a commercial building? A business license is about $300 give or take (depending on your city).
*Here are the steps to start a consultant business*
1. Create a business name
2. Create a free website and then you can buy a domain name from
(www.Webs.com), (www.Wix.com), (www.Weebly.com) (FREE Website Builders)
3. Word-of-Mouth (Tell Everybody!)
4. Create flyers-Post in libraries, grocery stores, bus terminals where allowed).
5. Business Cards- (www.Vistaprint.com), (www.GotPrint.com), (www.staples.com) and plenty of other options.
6. Introduction letter to companies that you're interested in working and businesses that are already hiring in your field of choice. (Check these third party job boards, such as (www.indeed.com), (www.snagajob.com), (www.monster.com), (www.careerbuilder.com)
7. Brochures-Not Necessary
8. Ask family, friends, Associates, Former Co-workers, and neighbors for assistance.
9. Post cards-My favorite
10. Videos- (www.Youtube.com) usually how-to videos, animals or children gets the most views, something that's funny.

Maryann,
Also, to answer your last question about creating a website. Yes, you can create one without getting a EIN number. Sole-Proprietor is the easiest, and your EIN # can be your social security number. This is how I did without being registered as an LLC.
*The main thing to staring a Independent firm is companies want to know,
1. Who you are?
2. What can you do for them?
3. Are you a good fit for their company.
#After a year in business you can register with the "Better business Bureau" people love this to check your business status, it's like your business report card, BBB grade you A-F. *Don't worry, everything will fall in place. If you need help, please let me know. I can also help you advertise online. (Social Media, Blog, an classifieds). Smile and take a deep breath. You'll Be Fine. :-)

Thanks for all of your info and help Sharrondark. I will be doing this from my home. I have my business name and website content and design ready to go. I've got contracts and welcome packet ready also.

I was just concerned because I thought that I had to have a business license in order to start working and getting paid. I'm ready to go and put up my website, but again, thought that I had to get a license first in order to do that as well.

When I file the Schedule C (next year) that's just at the end of the year along with my husband's return (because we are joint filing married) right? I don't need to do anything quarterly? I just save all of my receipts, bank statements and documentation incase I am audited correct?

Do I just get my license when I have the funds or is there a time limit?

Thanks again!

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Maryann Matas, Seashore Transcription & Typing Services
Virtually Partnering in Business for Your Success

Hello Maryann,
Here is the number to H & R Block to speak to a Business Tax Specialist. It's a guy in the Crystal City area and Ballston Common Mall on the 3rd floor. I just can't think of his name, he has been preparing taxes for years.
1. H & R Block- (703) 528-3808 (Ballston Common Mall)
2. H & R Block- (703) 415-7956 (Crystal City) Arlington, VA

A sole prop is taxed the same as a llc - they are both considered personal income. It made sense to me to set up as a llc for the liability issues and to appear more professional to prospective clients.

As far as year-end, I believe you will file a sched c either way (I don't do taxes ) but you should check with an accountant to be sure...

And, either way, you will need to file quarterly tax deposits (well, sorta quarterly - April, July, September, January) whether you are a sole-prop or llc.

I recommend you go to www.choosewhat.com for a comprehensive 'starting up a business' checklist that will help you with some of these decisions.

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Lily Chambers, The Virtual Office Goddess, LLC
Author "How to Do Your Own Small Business Bookkeeping"

@Office Goddess The January payment..is that the first payment or the last?

Since its now January, am i making the last payment of 2011 for taxes or the first payment for 2012?

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Alisa A. Beatty ~Assistance You Can Count On~ www.virtual-jane.com

Originally Posted by Virtual Jane

@Office Goddess The January payment..is that the first payment or the last? Since its now January, am i making the last payment of 2011 for taxes or the first payment for 2012?

Last payment for the prior fiscal year. If you break your estimated taxes into 4 chunks, after you do your third deposit (in September) you can calc exactly how much you need to deposit in January for the final segment instead of over-depositing your taxes.

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Lily Chambers, The Virtual Office Goddess, LLC
Author "How to Do Your Own Small Business Bookkeeping"