Last Year I Opened A Translation Business. I Get Just A Few Translations During A Year. I Work From Home. DO I NEED A BUSINESS LICENSE? Should I Charge Taxes?

Well friend your situation is not that complex as you think. Since you have started a translation business on your own and you are doing business from your home. As there are no serious obligations attached to it that you must need a license. But license is necessary in that case when you are earning high profit and your business is going on track of success.

As I can see from your question that you are running a small setup so as long as you are not noticed by higher authorities or you don't do any thing wrong you can run your business without a license. You can register your business after the success of your business and only if you think that this thing is in operation smoothly and effectively.

Now coming back to the Tax point. As a responsible citizen tax is your contribution towards Government's treasury. So if you feel that you come into the tax payer's category then you should pay the tax because your tax money is later on spent on you by Government.

For further guidance and help about your business license and registration contact the nearest chamber of commerce in your city. Also visit Tax department to know the level of income which falls into the tax payer's category.

I hope this would help you.

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I cannot give you really specific information regarding your situation, since I do not know which state tax laws may apply in your case. A rule of thumb in relation to Federal Taxes is, if you made more than $1200.00 at any one time the money is taxable. If, your business earned less than $1200.00 you will not have to pay taxes.

Now, you said you opened a translation business and you work at home. How did you decide it is a business? Did you give it a name you use for advertising? Do you have a separate set of financial records, a special checking account with the name of your company? Or, are you freelancing and picking up small jobs as they come along. See the point is maybe you really do not have a business; maybe you are an independent freelancer, who just uses small translation jobs as a means to supplement your regular income. In this case you do not have a business; you do not need a business name or any kind of a license.

Just keep track of jobs, dates, payments and cost to you for each translation job you do. Then at tax time give this information to your CPA or whoever prepares your taxes. In most cases unless the amount is over $1200.00 you will not owe any taxes. If, you are over sixty-five the amount taxable is higher and each year changes as to how much money you can make before that money is taxable.

Now, another good reason to keep a good descriptive record of your translation jobs, dates, payments and cost to you annually, is that the person for whom you do the translation is also, recording his/her costs, etc. However, the time could come when someone who is having a tax problem needs information from you, related to your mutual transactions. So, just keep good records, and turn the information over to your accountant each year and enjoy your extra work and money. Until the day you are making large amounts of money weekly and then you will need to contact a financial adviser and CPA. Until then Enjoy!

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Archer & JoMar, Thanks a lot for your answers.
I just want to add some other information to my case.
I had already gotten a name for my business. I got also a tax ID a license and lastly I opened a business account. All this by suggestions of a CPA. But I did not make ANY money last year. And so far I project just a thousand dollar income during the whole year. The license renewal is due this month - about 150 dollars. I do translations for a federal bank and that is the reason I thought I needed all this paper work and formality. They will. They could have paid me directly but since I had a business account I told them to pay me through it. Can I not renew the license since I am not really a business, although constituted as one?

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This site will make it real easy on you. Visit www.businesslicenses.com to get any business license, permit, or tax registration.

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