Im about to starting mobile detailing business. I already registered my business name. Do I have to form my business? What is best choice? Also do I have to form my business in order to open business account? Or just deposit it my personal bank account? I checked online for forming LLC it cost almost $600 for fast service
If you're asking if you have to create an LLC, the answer is no, you don't. You don't say where you're at, but in most states, all you need to do is register with the state and you're in business. In WA state, it costs about $20. Once you have the paperwork from the state, you should be able to open a business bank account. Most businesses fail in the back end stuff. Paying taxes properly, marketing, etc. It's best to find a mentor near you who is already running a successful business or to join a small business group.
I met with a CPA, they were very helpful and told me not to use an LLC when first starting off. You do need an tax ID to get a Business Checking Account, which means you must file taxes every year. You'll def want a professional to help you with this, keeping it seperate from your personal taxes, using the deductions, i'm guessing the vehicle and office space will be owned by you and not the "Business" You also must have a Tax ID to get Business Insurance. When i first started i did it under the table until i could get my client list built in order to justify all the costs of setting it up legally. I would honestly seek out a CPA, tell him your thinking about setting up a business, they will guide you on the process, and help you make the best decision. Most will meet with you for free, but i would find out their hourly rate on preparing tax forms, here in PA the sales tax is computed and filed quarterly and the income tax is filed yearly. Good Luck!
As a sole-prop, your tax ID is your SSN. This works for tax purposes, for a business checking account and for insurance purposes. There isn't a need to apply for and receive a separate federal tax ID number unless you're planning on hiring employees. You can always get it later if you expand. I agree with KlineS157 that you should get some professional help with the bookkeeping. I do all of mine myself, but not everyone is ready for that or has the proper background.
