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Accounting & Bookkeeping & Small Business Forum
Accounting, Bookkeeping, Marketing, and Small Business Resource
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camrodecker
Joined: 26 Oct 2005
Posts: 103
Location: Clovis, CA
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| Posted: Tue Sep 30, 2008 12:09 am Post subject: business start date |
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What determines the start date of a business? If one has been preparing to start a business for several months and finally has everything in place when does the 'Business' actually begin? If one has been freelancing for a while and decides to begin a business what beginning date is used?
Thank you |
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Richard Noot
Joined: 20 Aug 2005
Posts: 892
Location: Minnesota
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| Posted: Tue Sep 30, 2008 6:37 am Post subject: Re: business start date |
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camrodecker wrote: What determines the start date of a business? If one has been preparing to start a business for several months and finally has everything in place when does the 'Business' actually begin? If one has been freelancing for a while and decides to begin a business what beginning date is used?
Thank you
So was your freelancing a hobby?? If not then it was a business. This means that the freelancing should have been reported on a sch C and any
taxes including self employment taxes should have been paid on the net income. If it was a hobby then the income is reported on the 1040 and any expenses are reported on the sch A. up to the income amount shown on the 1040. |
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camrodecker
Joined: 26 Oct 2005
Posts: 103
Location: Clovis, CA
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| Posted: Tue Sep 30, 2008 10:19 am Post subject: |
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I have been freelancing as a hobby but now want to get a business going. What determines my start date? And, can I deduct expenses that are prior to my official start date?
Thank you |
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