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Old 04-19-2004, 07:08 PM
MTW
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Default Re: A couple of questions on sole proprietor

Christopher Green <cj.green[at]worldnet.att.net> wrote:

- quote -

> Washington has a Business and Occupations Tax; you have to
> register with the Department of Revenue and pay this tax if
> you make more than $12,000 a year. Sole proprietors are not
> exempt. Service businesses such as consultants pay 1.5% of
> gross income.


Footnote: There is a "small business tax credit" available
that will offset the tax on approximately $28,000 of gross
receipts in the "service" category. However, as you note,
you are still required to register and file returns if over
$12,000.

MTW

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  #1  
Old 04-13-2004, 08:15 AM
Christopher Green
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Default Re: A couple of questions on sole proprietor

k_v_n_1984[at]yahoo.com (k. v. n.) wrote:

- quote -

> I am thinking to quit my software engineer job and work as
> an independent contractor. For that I think I need to
> register as a sole proprietor. Here I have a couple of
> questions:
> 1) I live in California. So I will register in California.
> But if I later decide to move to Washington state, should I
> de-register in California and then register in Washington?


If you are working on your own, with no employees, your
registration requirement is very limited, typically only a
Fictitious Business Name statement and a local business
license. If you sell taxable goods, you'll also need a sales
tax permit.

Those won't transfer to Washington; you'll re-register there
if you move there.

- quote -

> 2) I heard that there was no state personal income tax in
> Washington. Does this apply to sole proprietor?


Washington has a Business and Occupations Tax; you have to
register with the Department of Revenue and pay this tax if
you make more than $12,000 a year. Sole proprietors are not
exempt. Service businesses such as consultants pay 1.5% of
gross income.

--
Chris Green

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Old 04-13-2004, 07:37 AM
Stuart O. Bronstein
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Default Re: A couple of questions on sole proprietor

k_v_n_1984[at]yahoo.com (k. v. n.) wrote:

- quote -

> I am thinking to quit my software engineer job and work as
> an independent contractor. For that I think I need to
> register as a sole proprietor. Here I have a couple of
> questions:
> 1) I live in California. So I will register in California.
> But if I later decide to move to Washington state, should I
> de-register in California and then register in Washington?


You don't need to "register" anywhere to be an independent
contractor. All you have to do is have a social security
number.

Stu

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  #-1  
Old 04-12-2004, 10:33 AM
k. v. n.
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Posts: n/a
Default A couple of questions on sole proprietor

I am thinking to quit my software engineer job and work as
an independent contractor. For that I think I need to
register as a sole proprietor. Here I have a couple of
questions:

1) I live in California. So I will register in California.
But if I later decide to move to Washington state, should I
de-register in California and then register in Washington?

2) I heard that there was no state personal income tax in
Washington. Does this apply to sole proprietor?

I very much appreciate your help. Thanks!

k.v.n.

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