Question by Captain G: Do you have to file any forms with the state to start an online business?
Do you have to have a registered business to sell stuff online? I heard that all you have to do is get a tax ID number, is that true? Thanks for the help!
Answer by Jss
If you are a sole proprietor, then you can use your own SSN for tax ID. You may need to register your business with your city or county.
You are self employed or independent contractor. You will report your income and expenses on schedule C or C-EZ (Form 1040). This income is subject to SE tax at 15.3%. Read about self employed (or independent contractor) tax filing and payment of estimated taxes: http://taxipay.blogspot.com/2008/04/tax-filing-by-self-employed-sole.html
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