Starting a softball business

Hi All,

Has anyone started a business to declare taxes on income on what they earn from giving lessons, umpiring, and/or hosting camps and clinics?

How do you come up with a legal business name for applying for a business credit card? Do you need to apply with the state, or do you need just need to make one up?

I'm thinking 'DaBears17 Love Softball'

I have a rough general idea, but need little details on how to make sure you can have a non-calendar year business year. For example, I have started accumulating expenses this year after August 1st, but my only income has been some income from umpiring before August 1st. I likely will have $5k-6k in expenses this year.

I'm thinking of setting up a non-profit and donating my start up costs to the non-profit, then operating as a non-profit. I know that I may need to get small donations from people other than myself to be legit, but I think I can do that. Or I set it up as a softball education Foundation.

I likely will be hosting 3-4 camps/clinics next year, as well as giving some starter pitching lessons next year.

Thank you for any advice/help/suggestions of books or websites.

I run my own business, but not for softball. My best advice is get a rough idea on how much you think you will make and what you think your expenses are. You also need to decide whether you are going to set up a retirement account to shelter some of the money from taxes. Then go talk with a CPA and a business attorney. You will be asking similar questions to both such as should I set up an LLC, S-Corp, or DBA? What do I need to do to protect myself and my personal finances from any business liability? What type of retirement fund should I set up if any? Do I need to have liability insurance? Sometimes the lawyer and the CPA will have the same answer. Sometimes their answers will differ. There answers are also dependent on which state you live in. Biggest thing is sheltering yourself and your personal finances from your business liabilities. If you don't keep your personal finances separate from your business and you get sued they may be able to go after your personal finances such as your house, car etc. I am not an expert on this hence the reason I suggest talking to a CPA and an attorney. I have both that I use whenever I have questions. Also talk with the organization that you umpire for. They may have their own insurance that protects you from liability when your working a game.

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I probably over paid for setting it up, but set it up as an LLC on legal zoom. I set a fiscal year to allow me to capture expenses this year to offset revenue I will have the first 5 months of next year.

I am flying somewhere this weekend to discuss my business plans with two people I wanted involved in part of my business, so I want to have it set up to be able to write off those expenses. And to be able to get a business credit card.

I should be ok on a liability front just doing investments, but will look into getting some sort of liability insurance.

Dabears17 said:

I probably over paid for setting it up, but set it up as an LLC on legal zoom. I set a fiscal year to allow me to capture expenses this year to offset revenue I will have the first 5 months of next year.

I am flying somewhere this weekend to discuss my business plans with two people I wanted involved in part of my business, so I want to have it set up to be able to write off those expenses. And to be able to get a business credit card.

I should be ok on a liability front just doing investments, but will look into getting some sort of liability insurance.

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Ok. Taxes are based on a calendar year, January to December, file in April. You don't have a choice about this. The fiscal year you set-up in your LLC is for Financial Reporting, and does not apply to tax reporting.

If you don't have enough income to cover your first year of expenses, you will have a net operating loss on your income taxes. Starting in 2018, an NOL may only be deducted against the current year’s taxes. However, a two-year carryback continues to apply for certain losses incurred by farming businesses. Moreover, the TCJA permits taxpayers to deduct NOLs only up to 80% of taxable income for the year (not counting the NOL deduction). Any unused NOL amounts may be carried forward and deducted in any number of future years.

In other words, you probably need to consult with a tax accountant.

Good luck with your new business!!

Your understanding is what my understanding is. I thought I might be able to use up losses for up to two years. My daughter owns 5pct of the family machine shop, so I do have a tax accountant, he is just on vacation this week.

Thank you!

You might want to check into the fact of a deduction if the office is run out of your home with your CPA.

You def need to pick an entity name and then check to see if its not taken and then apply with your state.