The Wealth Spa

Use the Appropriate Tax Status for Your Business Phase and Entity.

Posted on 29. May, 2008 by Elizabeth Potts Weinstein.

The words “entity” or “status” of your business may be used in two ways:  (1) to describe the legal entity of your business (sole proprietor, partnership, LLC, S-Corporation, C-Corporation) or, (2) to describe status of your business for tax purposes (pass-through or corporation).  In the following post we will be discussing which legal entity is [...]

Continue Reading

Is it legal to have a business in your home?

Posted on 07. Aug, 2007 by Elizabeth Potts Weinstein.

The question has two sides — is it legal to have a business in your home OR are you running your business legally?  The second questions deals with what you have to do to run your home business without getting in trouble with some government agency, but the first question asks if you are allowed [...]

Continue Reading

How do you keep your contractors from becoming employees?

Posted on 01. Aug, 2007 by Elizabeth Potts Weinstein.

I advocate using independent contractors, such as Virtual Assistants, as a way to grow your business without increasing overhead and regulatory issues.  But the only way for this strategy to work is for you to be actually hiring independent contractors, and not accidentally letting the relationship morph into an employee relationship.   If the person is [...]

Continue Reading

When do you need a Tax ID number or EIN for your business?

Posted on 31. Jul, 2007 by Elizabeth Potts Weinstein.

Question:  “Do I have to get a tax ID number or employer identification number (EIN) to run my business from home?  Can I just use my social security number (SNN)?”

Answer:  It depends.
Let’s start at the beginning.
A tax ID number or employer identification number (EIN) is a number you get from the U.S. federal government that [...]

Continue Reading