How To Register As Self-Employed
Do you want to know how to register as self-employed? If you own your own business, there are several steps that you must take to register as self-employed for legal and tax purposes. Here's some advice:
- Decide what type of business entity you'd like to establish. If you are running your business alone and it is a new business, you will most likely register as a sole proprietorship. You do not need to register a sole proprietorship with the state if you are self-employed. Your choice of business entity is not permanent. As your business grows, you can register differently depending on your needs.
- Choose an official business name. Once you've decided what to call your business, you can register this name with your state. Regulations for this vary by state. If you are a sole proprietor and the legal business name is your name, you do not need to register it to be registered as self-employed.
- Register for an Employee Identification Number. Most businesses must register with the IRS and state and local revenue agencies, and receive a tax ID number or permit. This is also called an Employee Identification Number, or EIN. If you are self-employed, you can now apply online for an EIN using the IRS's website with their easy online form.
- Register for state and local taxes. Business tax laws for those who are self-employed vary by state. You can find an overview for your state on the government's website.
- Make sure you have the necessary licenses and permits to run your business. Permit requirements for those who are self-employed vary by state, municipality, and type of business.
- If you are self-employed, you also must report your earnings to the Social Security Administration. You do this when you file your federal taxes each year. Required forms include Form 1040 (U.S. Individual Income Tax Return), Schedule C (Profit or Loss from Business) and Schedule SE (Self-Employment Tax).
Posted on: Sep. 11, 2010