[HNW] 1597 Sibmacher
fran at lavoltapress.com
Wed Aug 29 14:32:44 PDT 2007
I registered my publishing house as a business 14 years ago, and have
been renewing the license ever since. So it's not an issue for me.
If you're running a professional business making real income, you need
to not only pay your taxes but convince the IRS that this is a real
business and not a hobby. Otherwise they may disallow your deductions of
expenses; or think you are fishy and want to audit your and your
spouse's (if you are married) entire income, from all sources. I've
never been audited but I've been told that even if you have nothing to
hide it's a time-consuming nuisance.
If you're running a hobby business, and not deducting any expenses,
perhaps it doesn't matter as much. I don't know the exact tax rules for
hobby businesses, never having run one. I've always worked on a strict
I personally think that in anything involving the tax authorities you
should be absolutely squeaky clean. So does my tax accountant, and I pay
him handsomely for his advice and services (but I deduct his fees from
my income taxes!). When I started the business I found it cheaper and
more efficient to read a couple of basic business books than to throw
myself on him with _all_ basic questions.
Other people's mileage may vary. Whatever. Who cares. I don't need
business advice. I was just trying to help any newbie publishers on the
list stay out of trouble. They are free to handle their taxes however
they like, as far as I'm concerned.
Lavolta Press Books on Historic Costuming and Needlework
SNSpies at aol.com wrote:
> I would recommend talking with your tax person before going to all the
> trouble, which may, of course, be necessary, of registering as a small
> business. Some states may require it; others may not. You will always,
> of course, need to report income and expenditures on your yearly
> personal tax forms and pay both state and federal taxes.
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