Business License and tax questions - Personal Trainer Community - Forum

[fitnessbarbie]

Hello,
I decided to do independent training. Does anyone out there who does that have a business license? I'm wondering if its something I need to get.
And what do I do about taxes? I'm devised a spreadsheet to keep track of my expenses and income but is there a form I need to turn in?

Basically I want to do this right so I dont get into any trouble down the road and have to stop.

Any advice would be GREAT!

Steph

[KPG]

Hi Fitnessbarbie,

I am not an expert, but yes you need a license. Are you in the US? If so check out your City's website to find out what is required. Most have the forms that you can print and mail in.

Good Luck!

[latrainer]

Hi Steph,

Yup! Do it right from the beginning! You definitely need a business license if you are in business. You can check at city hall in the city you live in.

Your city may cross reference DBA's, and nail you if you haven't filed. We are talking going back 3 years, plus interest, and penalties.

Business licenses are not that much so look into it.

As far as taxes, use Quickbooks, or Quicken to track all your income, expenses, and deductions.

Good luck, and have a great 2009!

[megfit]

Steph,

Definitely check with your county about the business requirements. A license will depend on where you're training and if your area is incorporated or not. However, do make sure you read the applications, because often county employees will tell you need things you don't.

As for taxes, all untaxed revenue will be taxable. As latrainer said, though, get yourself some accounting software. If you already have an accountant, he/she might let you download their software. I did that for many years when I started, until I was ready to invest in my own. The accountant will also give you tips on items to keep track of for deductions. You can also go onto the SBA website (Small Business Association) for more tips/information.

At the end of the year, as a sole proprietor, you will file a Schedule C with your personal income taxes. A big key is to write off as much as possible, in order to show as low an income as you can. Less income equals less taxes..

Margie