business tax question for CA

toyotaguy · 10-13-08, 12:28

I was looking around online, cant find anything specific...i suck at searching for things.

I was wondering if come tax time what I need to do.

I have my DBA, but no business license. I am claiming everything on my personal taxes this year for the business as its a sole-proprietorship right now. Next year I plan on setting it up as a LLC instead as I have a few things in the works to make this business grow.

my question is this, if anyone might know...

do I have to have a business license in order to file taxes, or will the DBA be sufficient? If you have any resources that may help me out without me going to a tax person/lawyer to find out, I would appreciate it...if it comes down to it, I will ask a tax person, but I thought I would just throw it out there right now

thanks

eric

d00t · 10-13-08, 12:47

No, you need a license and a fictitious name filed with the county/city in order to claim on your taxes. Who ever set up your DBA account at the bank is an idiot. At most, if not all, banks you need to have proof of your fictitious and license before getting an account (which is what I assume you mean by 'having a dba'). If you don't, then you're not legally anything, just a person detailing cars.

Unless you're a CPA or have owned a business a long time, I would NOT suggest filing your taxes by yourself. I happen to work for a bank, so I know a few people who know CPA's for business who can help me out when the time comes. Think about taking a class on Quickbooks. It's pretty easy to use if you get the basic version, and that way when you're ready to file taxes you don't have to do much work, quickbooks will enter everything in (assuming you use turbo tax which is also made by intuit).

Good luck

brwill2005 · 10-13-08, 02:01

You definitely need a business license with the county. This should have been one of the first things you did, as it establishes your business. My county website actually has an easy to understand 'doing business in ... county' section. I would imagine your county has something similar.

Flashtime · 10-13-08, 04:43

Nolo: Law Books, Legal Forms and Legal Software

Obtaining Licenses & Permits - Resource Center

Lumadar · 10-13-08, 08:02

I suggest not filing your LLC in California unless you want to waste $800 a year in fees.