I'm a judgmental person, and I know this to be true. It's part of what makes me so damn fun to sit by at bars, weddings and on the benches at Wal-Mart.
So, in Principles of Accounting 101 (I'm assuming Accounting had it's own 101) I remember very distinctly thinking that Sole Proprietorships were bad. Too much liability. Too much opportunity for shit to blow up big time. In your face big time.
So, why on earth would anyone have sole proprietorship? Well, you have to start somewhere. Right?
Jess is working really hard on her furniture, and I want to be supportive. She is starting to sell a few pieces, and has received a few orders for custom finishing on a few pieces. You can check out here blog HERE. It's really exciting, and fun for her to have both an outlet for her creativity and a little side business to help with some fun money....but if it keeps growing, and I whole heartedly hope that it does, we are going to need to dust off some of those BA 101 classes and get our act together.
So, tonight I did some reading on the good old Nebraska Department of Revenue website....and it looks like the time has come. We are not really doing this as a hobby....we WANT to make a profit. Which means it's time to start charging sales tax on her work. Which requires a tax ID number. Which means it's time to identify the business as a business...and all signs are pointing to sole proprietorship.
At least to start. I think this is the place that makes sense for us. However, I'd love to have your thoughts. Have you started a business? Are we on the right track? I'm an MBA candidate for crying out loud....you'd think I'd be able to figure this out.
So, in Principles of Accounting 101 (I'm assuming Accounting had it's own 101) I remember very distinctly thinking that Sole Proprietorships were bad. Too much liability. Too much opportunity for shit to blow up big time. In your face big time.
So, why on earth would anyone have sole proprietorship? Well, you have to start somewhere. Right?
Jess is working really hard on her furniture, and I want to be supportive. She is starting to sell a few pieces, and has received a few orders for custom finishing on a few pieces. You can check out here blog HERE. It's really exciting, and fun for her to have both an outlet for her creativity and a little side business to help with some fun money....but if it keeps growing, and I whole heartedly hope that it does, we are going to need to dust off some of those BA 101 classes and get our act together.
So, tonight I did some reading on the good old Nebraska Department of Revenue website....and it looks like the time has come. We are not really doing this as a hobby....we WANT to make a profit. Which means it's time to start charging sales tax on her work. Which requires a tax ID number. Which means it's time to identify the business as a business...and all signs are pointing to sole proprietorship.
At least to start. I think this is the place that makes sense for us. However, I'd love to have your thoughts. Have you started a business? Are we on the right track? I'm an MBA candidate for crying out loud....you'd think I'd be able to figure this out.
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