Company moving to the next step filing/DBA/Wholesale..

[CCCustoms]

Jurisdiction

Kansas

If I have been doing business for 2-2.5 years on the side of my main job and I calibrate car's ecus and fabricate performance components. I have never filed anything such as a dba or any sort of licensing because it has really been a hobby which i pour 100% of earnings back into tools and projects of my own. Lets say I have averaged ~10k income a year from this hobby and have 10-20 customers a year.

Am i at risk from a tax or other standpoint? What if i were to grow 2-3 fold?
What sort of licensing or other filings should i do or should i have been doing?
I would like to start ordering parts wholesale and people are asking for a business license, a sales tax number and other documentation. How much of this should i have and what does it all entail?

I have in part been avoiding growing any more because i do not wish to do any yearly returns or have to do any recurring document filing. It ends up being a lot of work for a one man show.

 

[adjusterjack]

My advice. Do it right or quit doing it.

Start with the IRS website where you'll find a lot of information about business taxes.

Next go to your Secretary of State's website to learn what it takes to operate a business in Kansas.

Whatever you don't learn from all that can be learned from a business attorney and a CPA.

Get yourself a commercial insurance agent to line you up with the proper insurance coverage. What you do has serious risk of injury and/or death to your customers and the general public and a lawsuit could drive you into the poorhouse if you don't have the proper insurance. And, no, an LLC won't protect you or your personal assets from that. Neither will waivers or disclaimers.

 

[txls]

Check to see if there is a Small Business Development office in your area. They can help you with all of those things and more. And yes you need to do things right. If you have "customers" then it is not a hobby.

 

[army judge]

If I have been doing business for 2-2.5 years on the side of my main job and I calibrate car's ecus and fabricate performance components. I have never filed anything such as a dba or any sort of licensing because it has really been a hobby which i pour 100% of earnings back into tools and projects of my own. Lets say I have averaged ~10k income a year from this hobby and have 10-20 customers a year.

Am i at risk from a tax or other standpoint? What if i were to grow 2-3 fold?
What sort of licensing or other filings should i do or should i have been doing?
I would like to start ordering parts wholesale and people are asking for a business license, a sales tax number and other documentation. How much of this should i have and what does it all entail?

I have in part been avoiding growing any more because i do not wish to do any yearly returns or have to do any recurring document filing. It ends up being a lot of work for a one man show.

You are right to worry about the tax agencies, mate.

Not only can the IRA seek their kickback, your state and municipal agencies in KS can also come sniffing around.

They can destroy you financially.

Before you do anything else, talk to a CPA or tax attorney and ask what your potential exposure is from your past efforts.

Ask how you can protect yourself.
You're still exposed, if the greedy devils take interest in you, or someone outs your endeavors.

Good luck.