I will be establishing a Sole Proprietorship for my web business. I am able to operate the business and earn money with a lot less regulatory requirement. I will be able to have the money I earn go straight into my personal account and will have to only pay self-employed taxes. I do not need to manage the money separately and then pay myself. It is ok to just dump straight into my personal account. Being a small operation, I will also be able to make all the decisions for the Sole Proprietorship. This is because Only one person can be in charge of it. Where as in California we were able to be a married couple sole proprietorship. I have no intention to hire anyone to help me with this operation. This will reinforce my intent of keeping it a small sole proprietorship to test out this idea. This is also a very simple way to start off this endeavor as well.
I will be required to have a business license in the state of Tennessee. But I may qualify for a minimal activity license because I do not expect to pull more than $10,000 this year. But I hope to make more than $3,000 dollars. Which requires me to get a license. If I make less then I do not need a license. This is good because if give me a buffer zone to test out my idea and strive to make it work without the penalty of owning the government money. That being said the fee is a low cost for starting off. I would prefer not to have to pay anything and keep all of my profits for my hard work. Only paying out to those services I used, like hosting, or shipping.
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