Do I have to register a translation business?
Thread poster: JuanMoralez

JuanMoralez
English
Oct 4, 2005

I want to try it as freelancer in Utah, USA but I am confused as to if I have to register a business or if I just can list my income in my yearly tax returns. I can't hire people anyway, it is just me who will work.

Did you American translators register businesses? I have nothing against register a business, I just wonder if I got the proper advice.


 

Kathi Stock  Identity Verified
United States
Local time: 17:04
Member (2002)
English to German
+ ...
Business registration Oct 5, 2005

Before I started my own business, I went to the local Chamber of Commerce to get know how about how to set up my business and what rules need to be followed. The great thing about this -- this advice is free of charge!
I registered my business at my county's court house. From what I understand, it makes it easier to claim business expenses when you file your taxes if you have a registered business.
Like you, I don't have any employees.

Hope that helps!

Kathi


 

Kevin Fulton  Identity Verified
United States
Local time: 18:04
German to English
Registration generally not required Oct 5, 2005

In most states in the US you are not required to register your business. As Kathi pointed out, there may be advantages to this.

You should keep track of your income and expenses (save your receipts), as you will need this information when you file your income tax return (state, if required, and federal). I use a spreadsheet for this purpose, but some people use a program like "QuickBooks."


 

Michele Johnson  Identity Verified
Germany
Local time: 00:04
German to English
+ ...
IRS good source Oct 5, 2005

The IRS is a great source for the US tax end of things:
http://www.irs.gov/businesses/small/

You should of course consult your tax advisor but I'd be prepared to pay self-employment tax (currently 15.3%) in addition to US income tax (and of course any local and state taxes due):

Self-employed individuals, sole-proprietors, independent contractors and persons who have net earnings of $400 or more are required to pay self-employment tax by filing Schedule SE (PDF), attached to their Form 1040, U.S. Individual Income Tax Return.
http://www.irs.gov/businesses/small/article/0,,id=98846,00.html


 

Can Altinbay  Identity Verified
Local time: 18:04
Japanese to English
+ ...
A book and a disclaimer Oct 5, 2005

Disclaimer: Whenever you have questions about the law, the ultimate resource is an attorney. Others cannot legally give you advice on your particular situation.

That said, a great resource for people starting their own business is Working for Yourself from Nolo Press.

I didn't have to register my business here in Indiana, because I am sole proprietor. But each state has its own regulations, so you need to check with your State agencies.


 


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Do I have to register a translation business?

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