> Hello please bear with me I'm trying to wrap my head around[...]
>> this whole starting a business thing.
>>
>> My wife and I want to start up a small business. We've
>> already gone out and got a DBA now I'm wondering what I need
>> to do next.
>>
>> 1. I was reading since my wife and I will be the only
>> employees we can be considered a join venture per a new law
>> passed in 2007. Is this true?
Per the 2007 tax law, a husband & wife in a business
> together may be able to file a sch c instead of a
> partnership tax return for their business. There may be
> issues to deal with if your business is an LLC. Exactly how
> some states are going to treat it is still being figured
> out.
>
> You will likely need a EIN for your business. You may have
> to register in some form or fashion with your state as well.
Paul Thomas got it right. The new federal law allows a taxpayer and spouse to each file a Schedule C for a joint venture, instead of a partnership return. Previously this was only allowed in community property states. There is no such thing as a "joint" Schedule C, just as there is no joint self-employment tax. Each spouse must account for his or her share of self-employment net profit and pay SE tax accordingly. Two Schedule C's, in other words. The EIN is a two-edged blade. It can help for superficial privacy (you don't have to put your SSN on 1099-MISC forms) and should be used for self-employed retirement accounts. On the other hand frequently the IRS thinks EIN = employees, so they will dog you every quarter to file an employee wage and withholding return.
-Mark B.
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