I plan to teach guitar lessons from home. When is the time should I register it as a business?

Question

do i need to register it if I don't have students yet or let's say if the time comes that I already have 3 or 5 ( less than 10 students). But I'm not sure if they'll be taking lessons for years and years...

In short, the number of my students is still unstable, do I have to register this guitar tutoring as my business?

What is the IRS law on this?

Answer 1

It really depends on your local ordinances. For example; most cities will expect you to get a business license. Generally does not cost much (25 bucks). However, if you plan on selling anything, you will need a business transaction license. That will give you a federal ID,which will allow you to purchase your inventory at wholesale prices. Last time I got one, I simply picked up the paper work at the courthouse, filled it out, and mailed it in...no cost (Feds get their money from taxes you charge). If you are only providing a service and won't earn much per individual service, I suspect you will only need the local business license. Hope this helps.