... but it cost all of $16.50 to file a DBA for my studio name. ....
DBA??? More please. I'm trying to get my **** in order this year.
"Doing Business As". At least in Williamson County, Texas, it's also called filing an 'Assumed Names' form, laws, rules, regulations all depend on state, county and sometimes city. If you go to open a business account at a bank, they need to see that form, it allows you to use it legally for any business, etc.
pure said:
Do I have to register as a business even though I'm online only? Do I have to pay taxes on my tiny ass income. I am 18, but I am still a dependent on my parents.
DBA simply allows you do business as another name. If you're taking in money, you need to file anyway, DBA or not. If anyone buys from you locally, you also need to take into account state and local taxes, even if it's over the internet. If you are doing all interstate commerce, you may avoid it entirely. I'm not so I also had to file for a tax ID (and I couldn't LEGALLY do business before obtaining it). In my case, I have to file state and city taxes quarterly, and report income as federal at the end of the year. It gets really twisted because I work both locally and across state boundaries over the internet. I get 1099's from some places, and straight income from others... such a blast.
On the flip side, you get to use gear, book, etc purchases as tax deductions, though you can only report a net loss federally something like 3 or 4 years in a row before you can't take any more deductions (because you're essentially creating a tax haven for yourself). Meals and travel are a little harder to deal with (more rules) and home-offices are particularly controlled.
As always -- I'm not a lawyer. You need to brush up on your federal, state and local laws and ordinances in order to make sure you're doing everything you need to do to make sure a business is legit and you can take income.
But simply filing for a DBA doesn't obligate you (at least where I live) to filing any income statements if you don't generate any incomel and all of my income, as a sole proprietor, is considered mine, personally, anyway (no S-corp, no LLC, etc).