If I charge people for a service, am I required to register with my state as a business and pay taxes?

Question

I'm starting a business of my own. I don't plan on having a large client base. It is basically a seasonal business that will have the majority of its work in the summer. I am the only person associated with the business...no employees.

Do I need to register with my state and pay taxes for the services I provide?

Answer 1

Wow! This could be a very volatile subject.

OK, depending in what State you reside/operate Business, there may or may not be State Income taxes.

In my opinion, I think it wise to check the State Tax Office and ask if there is a tax on business income.

Also, my opinion, is to register in your area at the local Business Regulation Office and register at least as a "DBA"

(doing business as) and get an inexpensive license.

THEN report your earnings, as necessary, to the IRS---regardless of your earnings.  Have a Tax Professional

(accountant) perform your tax return.  The accountant will also advise you of tax benefits available for your business.

With the IRS being as "latently evil" as they wish to be, it is not a good idea to try to outwit them---it could result in audits, heavy fines, seizure, etc....and you do not want that to happen to you.  

Plus, if you do go forward and register---it will give you some great experience for later on when you decide to go on to become a full-time Entrepreneur.