I'm creating a website for an existing business. The name is registered. Kcswindowcleaning is a window cleaning service that my husband's uncle have.
I've studied the materials for the lesson and some additional materials and here are the things that I've learned this week about starting a business in AZ.
Legal Structure
Sole Proprietorship would be my choice for several reasons.
1. This is the simplest business structure to organize.
2. I will be responsible for all business decisions and financial obligations. Business revenue (income) is considered my personal income and is taxed at my personal tax rate.
Business set up.
In the USA. I will need to fill in a certificate of Assumed Business Name.
Taxes are paid by filing Schedule C with the owner's personal income tax return. The owner pays quarterly estimated taxes on business profits and pays self-employment taxes. See the Taxes section of this site for more information.
The business terminates upon the owner's retirement, death or bankruptcy. Assets are disposed of according to the terms of the owner's will or a court order.
In Russia. You have to file a petition to register a Sole Proprietorship and pay the registration fee. To close it you have to do the same things. The registration or closing takes 5 working days.
The tax system for Sole Proprietorship is pretty complex and there are many different tax plans that you can choose from. You have to pay pension fund contributions even if you don't have profit so it is better to close the Sole Proprietorship is you stopped doing this kind of business or your profit is not sufficient.
Tax and licence.
I've learned that in AZ a window cleaning business must obtain a business license after getting DBA and Federal ID. Kcswindowcleaning also makes sunscreens and sunscreen doors, so it must have a seller's permit or a resale license to collect taxes and to buy wholesale. If Kimber decided to hire an employee he'll have to obtain two EINs i.e., employer number: one from the federal and one from the state government to pay employment taxes.
For tax purposes, all business income and losses have to be recorded within Kimber's individual federal tax documents. In AZ, an income from your business is distributed to you as the sole proprietor, and you have to pay tax to the state on that income at your income tax rate that depends on your total year income.
Here are the resources I looked at
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