Originally Posted by
Dumpster Dee
then do you still get a business license ?
Having a business license is not related to taxes (except that you can deduct the cost of the license from your taxes). One is a State function; the other is federal. You can do one and never do the other. And it's no easier nor harder to get caught without either. By filing taxes as a business (even as Sole Proprietor), you can pay LESS taxes by showing a Business Loss which then lowers your taxes on your other income. I've done this by various means; including deducting the cost of the trailer in one year (it was a high income from scrap year) rather than depreciating over five years.
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