Before having a legit business...

Hey business owners!

Before having a legit business, can you conduct business? Such as sending a real invoice or quote that is in the form of an itemized bill?

Would there be any issues? I am thinking about taking a job which requires billing accordingly due to a third party paying and since I am issuing a bill, reporting it as part of my income... I am not sure if I should actually take the job or leave it alone since I have no idea how this would work out, since I do not have a registered business at this time...

I will be registering a business soon, but need to build up some coins to pay for the fees without tapping into my savings.

I apologize if this is vague.. but I am in a dilemma and not sure how to handle it. I really appreciate any advice given.

I normally take jobs from friends, or friends of friends, etc so its just like "Okay u want this and that, I`d do it for $$$, is that okay with you?" etc.

One word that will take all the thinking out it... CASH.

State laws regarding a home business all over the place and I have no idea where you reside. There could be a possibility where you could receive payment for work under X dollar amount per year and still not have to legally form an entity. However, that chance becomes less if you live inside city limits or in a development with an HOA or have bylaws for your development.

From a risk perspective... I would be very, very hesitant to send any sort of invoice or receipt both from a legal standpoint, tax standpoint, and liability standpoint. Again... CASH will solve your problem for now.

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Originally Posted by Dellinger

One word that will take all the thinking out it... CASH.State laws regarding a home business all over the place and I have no idea where your reside. There could be a possibility where you could receive payment for work under X dollar amount and still not have to legally form an entity. However, that chance becomes less if you live inside city limits or in a development with an HOA or have bylaws for your development.From a risk prospective... I would be very, very hesitant to send any sort of invoice or receipt both from a legal standpoint, tax standpoint, and liability standpoint. Again... CASH will solve you problem for now.

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My usual group knows its cash only, but in this case, the third party does require an invoice, the third party is a company that caused some scuffs on a friends car, they asked if I can take care of it and how much I`d charge, and they said the third party agrees to pay for it, but will want an quote, then an invoice. What do I do in this case? Maybe just call my buddy and say I can`t? It seems like a miss opportunity because its a pretty easy job.

Sorry I forgot to mention that I am in NYC, and I found this.. and not sure if it makes sense? http://info.legalzoom.com/start-sole...ork-23983.html

If you are performing services with another business and that value is over $400 annually, then the business seeking a contractor should require a W9 to verify you are a legitimate, tax paying business. Some do this... some don`t.

I would be DOUBLE hesitant to perform the work... but I`m not your CPA either. If you have one, consult with them. But I would pass, personally.

Why couldn`t you give an estimate to your friend and the business that damaged the vehicle reimburse him and then he could pay you with the proceeds?

Oh, that actually makes things easier.. I`ll send the friend a quote and tell him to show it and ask for reimbursement.. lol.. uh, I was thinking the job would cost about $130 so no where near $400.. (while that would be nice and I can grab myself a rupes nano!!! lol) to buff out the scuffs, its approx 2 to 3 hours of work. Looks like their guys brushed a bag of uh?? branches??? across one side of the car.

But okay, I`ll discuss it with my friend and ask him if that works, as well as contact my accountant.