Monday, February 21, 2011

How do I start two businesses?

I have two possible business opportunities and I'm not sure how to go about them because they're both very different. 1. Doing some temp accounting work for companies I know. I wouldn't be on their payroll but would just help them out and bill them as needed 2. Selling gift baskets. I always give them as gifts and this year I've had companies ask me if I can do some for them. How do I go about doing both of those legally, tax and GST wise? (In AB so no PST). Do I need to incorporate two businesses or can I work under one or even trade names? How do I set up a business/GST number? Any help is greatly appreciated.
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You will need to register with the IRS for tax purposes as well as your state for excise taxes and B&O taxes. If you can afford it, I would file for a limited liability company and then register 2 trade names, one for each business. Contact the IRS to obtain a EIN ( Employer Identification Number ), I believe you can apply for one online now - I did it via postal mail. The best recommendation is to visit your state's licensing department's website to obtain all the information necessary for doing business in your state. If you work out of your home, there are 'some' restrictions sometimes so you'll have to work with the licensing department to figure that out. Good luck!
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