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dawn2006
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| Posted: June 12 2009 at 12:32pm | IP Logged
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..blogging & shop. I started blogging in Dec and quickly became fascinated with different designs and coding and such. Dh says I can open an online store for blog design.
That sounds very simple doesn't it? I'm sure I've made it way too complicated. Here's how:
1. I sense that Wordpress is the way to go "for the future". It's more modern than Blogger (which I currently use). However, for cusom WP designs you need to sign up with WP.org not .com. Which means self-hosting and registering a domain, learning WP & coding, etc. Main takeaway from this point: A LOT of stuff for me to learn and also puts a limit on WP clients who don't want to do all that.
2. I'm familiar with Blogger and have learned a lot (is Alicia on this 4Real board? She contributed to the Moms Who Blog blog where I learned a lot. Thank you!) I could start my own Blogger shop by the end of the weekend if I so desired, without waiting to learn all about WP. I thought this was a good idea to get started and learn and offer free or reduced services while I'm learning. Main takeaway: I'm familiar with this platform and if I just focus on it for a while (without concerning myself with WP, also) it will probably be a more gentle introduction of a 'shop' into our lives, and hence my time, which is also my family's time.
3. If you earn money online is that a business? Do you have to register with your county's tax assessor and do business IRS forms and pay self-income tax and all that kind of stuff? Some of you ladies have online shops. Do you do all of that paperwork? Under what conditions does everything have to be formal?
Anyway...that's a lot of info but if anyone's interested in helping a sister figure things out, I'd greatly appreciate it.
TIA.
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Dawn Farias | wife to Ariel | mom to Gabriel 9, Daniel 7, Elizabeth 5, and Michael 3 | blogger at Be Absorbed | native Texan but currently living near Seattle
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CrunchyMom
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| Posted: June 12 2009 at 12:37pm | IP Logged
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I'm not sure of the specifics since dh handles finances, but he does work on the side and has looked into incorporating as a business. It all depends on how much you plan to do, but incorporating isn't cheap.
However, you are allowed to earn some income to report on your taxes that is delegated as a "hobby." So, if you just think you'll be doing a little bit here and there on the side, you don't have to incoporate--especially since your product isn't likely to need legal protection in case of injury (like a child's toy or baby carrier would).
HTH!
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Lindsay
Five Boys(6/04) (6/06) (9/08)(3/11),(7/13), and 1 girl (5/16)
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[URL=http://mysymphonygarden.blogspot.com/]Lost in the Cosmos[/UR
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dawn2006
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| Posted: June 12 2009 at 12:45pm | IP Logged
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Thanks, Lindsay. "Hobby" income sounds good. Maybe that's a perfect fit, actually.
I always get 12,000 steps ahead of myself before I've even done the first step.
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Dawn Farias | wife to Ariel | mom to Gabriel 9, Daniel 7, Elizabeth 5, and Michael 3 | blogger at Be Absorbed | native Texan but currently living near Seattle
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violingirl
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| Posted: June 12 2009 at 2:42pm | IP Logged
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I own a business, though not online. You will have to report your income even if you are at a hobby-ist level, so you should really get everything legally set up. It varies state to state, but here I had to get a DBA license through the state, and a business license in my city. I also make enough that I have to pay quarterly taxes. It costs me about $60 a year to keep my licenses current.
Hobby level income is very little, something like $400 a year- don't quote me- it may very well be $800 or something. If you're above that level it's considered a business and you can be audited. I'm a musician and sooooo not a tax person, but this has been my experience.
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Erin
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dawn2006
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| Posted: June 12 2009 at 3:38pm | IP Logged
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Thanks, ladies. As is often the case I deliberate and fret for eternity and the moment I come out to ask for help it seems like the scales fall and I make a decision.
(FTR, if you're interested, I'm going to stick with Blogger for a bit.)
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Dawn Farias | wife to Ariel | mom to Gabriel 9, Daniel 7, Elizabeth 5, and Michael 3 | blogger at Be Absorbed | native Texan but currently living near Seattle
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Kathryn
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| Posted: June 12 2009 at 10:59pm | IP Logged
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I've been selling on ebay for 6+ years and have always filed a Schedule C with my 1040. It's called Profit and Loss from a Business (Sole Proprietorship). There's even an IRS code for on-line sales. It allows for your business income as well as allll your expenses. It does automatically calculate self-employment tax as well. Which, remember, as an employee you only pay 1/2 and the employer pays 1/2 but being self-employed, you would pay the entire 15.3% on your net profit. I use a Money program to enter all my expenses so at year's end I just have to print out my "taxable" income and expenses and plug them in the form. If you use a program like TaxAct, it's pretty user friendly but I have an accounting background so if you're unsure at all, I'd hire a pro.
I live in TX and we don't have state income tax so that's all required of me for filing purposes. I don't have or need any other licensing, corporations, DBA's etc. for my on-line sales. I do have a state tax id but only so I can buy my merchandise and not pay sales tax (but then I have to collect it for in-state sales) but you wouldn't need that since you're selling a service, right?
If you do think you'll have much profit, you would need to pay quarterly otherwise there's a fine at year end. Fortunately we increased my husband's exemptions so we have a hefty chunk withheld from his paycheck and that keeps us covered and not paying quarterly (which isn't that big a deal...it's just a hassle to me and one more "to do").
HTH,
:-)
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Kathryn in TX
(dd 16, ds 15, dd 8, dd 5)
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dawn2006
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| Posted: June 16 2009 at 10:35am | IP Logged
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Thank you (Kathryn - I'm in TX, too!)
Now, my next question is, do you have to have everything all formally set up and declared as a business before you start conducting business? Or do you just wait until tax time and file the appropriate forms?
My BIL advised me to decalare the business as such with my county tax assessor and to declare it as a partnership with my dh. How did you all know what to do when you started? The IRS website? (If so, then I can go spend time over there instead of bothering you all for eternity!) How did you even know what to ask or look for? TIA.
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Dawn Farias | wife to Ariel | mom to Gabriel 9, Daniel 7, Elizabeth 5, and Michael 3 | blogger at Be Absorbed | native Texan but currently living near Seattle
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Kathryn
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| Posted: June 16 2009 at 12:58pm | IP Logged
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There's not really much formality required. I'm not sure your BIL's reasons for thinking you need to sign up w/ the county tax assessor or declare a partnership...I would ask him. My mom's done bookkeeping and taxes for 40+ yrs and I have a degree in Finance so "money's our thing" I guess so I kind of just already knew what I needed to do to file my business income and expenses. It's an at-home only, non storefront business so I don't see a need for any declarations to anyone about my business except the IRS. My opinion is that I really think anything he's mentioning is unnecessary to get you started.
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dawn2006
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| Posted: June 16 2009 at 4:37pm | IP Logged
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Thank you!!
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Dawn Farias | wife to Ariel | mom to Gabriel 9, Daniel 7, Elizabeth 5, and Michael 3 | blogger at Be Absorbed | native Texan but currently living near Seattle
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stefoodie
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| Posted: June 16 2009 at 4:53pm | IP Logged
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Having used both blogger and WP and also done my own designs, I'd say start with what you're most comfortable with and go from there. I think with blog design you'll find clients on all points of the spectrum -- zero experience with blog design to those who want to control more of it, so you end up doing very little for them.
One tip -- just be aware that technology moves so quickly, e.g., if you stop being "fluent" in one when you get back you may have to relearn a lot. I.e., when I stepped away from blog design a couple of years ago and went with pre-made, when I wanted to design again I found that the learning curve was steeper than I had expected because of the changes. Although, the basics really do stay the same (html, css, etc.) But things like Flash -- I used to design Flash sites when it first came out, and now I don't even know what's out there anymore in terms of software/capabilities.
My suggestion is get proficient in designing for Blogger quickly, then WP if that's still a goal, and subscribe to all the latest updates so you're always fresh.
As for income, I wouldn't worry about it until you get past a certain income level (last I checked it was $600?) -- then you have to report your income and pay taxes on it.
hth
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dawn2006
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| Posted: June 17 2009 at 8:19pm | IP Logged
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Stef - that's perfectly inline with what I ultimately decided! Thank you!
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Dawn Farias | wife to Ariel | mom to Gabriel 9, Daniel 7, Elizabeth 5, and Michael 3 | blogger at Be Absorbed | native Texan but currently living near Seattle
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dawn2006
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| Posted: June 25 2009 at 8:52am | IP Logged
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Well, I did get the shop up! Dawn's Design Shop
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Dawn Farias | wife to Ariel | mom to Gabriel 9, Daniel 7, Elizabeth 5, and Michael 3 | blogger at Be Absorbed | native Texan but currently living near Seattle
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insegnante
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| Posted: June 25 2009 at 10:37am | IP Logged
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I'm kind of late to this but we need to have a license from the town for our home business just because we have one -- clients don't come here, and there are no work-specific vehicles or really unusual equipment associated with it. I don't think the county required reporting, licensure, or anything like that though, and many people around here live in unincorporated areas. Just saying that I would check out the regulations of any government you're under -- city, town, county, even the state -- to be sure.
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dawn2006
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| Posted: June 25 2009 at 12:14pm | IP Logged
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Thank you.
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Dawn Farias | wife to Ariel | mom to Gabriel 9, Daniel 7, Elizabeth 5, and Michael 3 | blogger at Be Absorbed | native Texan but currently living near Seattle
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4Real Forums : Tea and Conversation
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