Reflections: Lesson 6 Reflections

I started the lesson out researching what type of legal structure I wanted to set my business up as. Since I do have a partner it will be a partnership. It is wise to make a partnership agreement as to expectations. Since we don't sell any goods we will not be needing a business license. As our blog gets bigger we would need to see a lawyer and accountant to set up an s-corp. That way we will not be personally liable for anything that may go wrong and with the s-corp we will be able to have fluid funds go to us personally at the end of the year.
As far as licenses when the point comes, I have made a list. This is just for me living in Utah.

1. Business license

-Get a state business license first at and then they will register for a federal id. https://secure.utah.gov/account/log-in.html

-Get a city license and mail it in.

http://www.cedarcity.org/DocumentCenter/Home/View/796

2. -State income tax is 5%, there is only one bracket.

http://incometax.utah.gov/topics/rates

-Federal income tax has different brackets depending on earning amount.

https://www.irs.com/articles/2015-federal-tax-rates-personal-exemptions-and-standard-deductions

3. Tax rates

-Utah state sales tax is 4.7% and Iron County sales tax is 1.25%

http://tax.utah.gov/sales/rates

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