When and How to Send 1099s

You have probably heard or read a lot of contradictory information on 1099s. I did a Q&A to gather questions from small business creative based business owners and summarized the answers in this short post. This blog will explain to whom you need to send 1099s and how to do it.

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Forming an LLC in California at the End of the Year

Many new business owners wish to launch their businesses in the new year. However, the legalities needed to get started can complicate the process. When forming an LLC in California, you must pay an annual minimum franchise tax to the state on an annual basis. That minimum tax is $800 in addition to standard income taxes. The first franchise tax is due on the 15th day of the fourth month after the LLC formation. For example, if you were to form your LLC in July, the fourth month of operation would by November. The $800 franchise tax would be due on November 15th.

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What's the Difference Between a Hobby and a Business? The Tax and Legal Lowdown.

I frequently hear people say things like “I just do this as a hobby,” or “I was told that if I make less than x dollars this is just a hobby.”

“Hobby” has a different meaning in a tax context, a legal context, and in a non-tax/legal context. We all understand the colloquial and dictionary definition of a hobby, so we will skip that bit. You’re here for the fun part anyhow right? Taxes and law!

Let’s start with the “why.” Why does it matter if we call your endeavor a hobby or a business? Answer. They are taxed differently. Also, hobbies may require less business structure.

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How to Pay Yourself and Do Basic Bookkeeping as a Small Business Owner

Most of us get into business and we’re super pumped. We get our website up, market on Instagram, and tell our friends and family. We have Googled. We have talked to other biz owners and freelancers about how to get rollin. We land our first client, and it’s amazing. But then, a lightbulb goes off, and we think “uhh what do I do with this money.” Does it go into my personal bank account? Should I inject it straight back into my business. How does one pay themselves as a small biz owner?

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Operating & Partnership Agreements - Why You Need Them

The birth of a new business is an exciting time. There’s no shortage of motivation, or enthusiasm and your creative juices must be flowing. Everything you’ve worked towards for the past few months has culminated into this moment... so congrats! But the legal aspect is often overlooked or worse, completely ignored. Failing to have a binding agreement can jeopardize everything you’ve been working for! But no worries, keep reading to figure out what kind of agreement suits you best.

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What’s a DBA and When Do You Need One?

If you’re starting a business for the first time – I’m sure there are abbreviations and key terms being thrown at you left and right. One of the most common is “DBA.” It refers to “doing business as” and means basically just that. It is your business’s assumed, trade, or fictitious name. Your DBA is essentially different from your name as a business owner or your business’s legal, registered name. Filing a DBA allows you to conduct business under a name other than your own or the name that you have registered. 

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