I will be setting up a homestay where Korean students will stay at my house for a year and attend a local high school. 

1. To operate a business of this type, especially one involving foreign nationals, it would be wise to file for a federal tax id number, to identify your business with the IRS and seperate it for tax purposes from your social security number. This will not only allow you to hire employees if you desire, but to file seperate tax documents for the business and take on partners.

2. Essential to forming a business is filing a dba, or filing for a ficticious name. An example of this would be if I desired to open a computer store and called it "Newtronics Computers and Electronics". That entire quoted field would be my dba. Once I had filed for it and it had been approved, it would become a legal entity and I would be able to open a bank account for it and file tax returns in its name. This would allow me to seperate my personal finances from the business, though only on an accounting level, as I would remain fully legally and financially responsible unless I filed for an llc or coporation.

3. The final step is to file at the local level for a businesss tax registration. This registration can take many forms, and can have nothing to do with taxes, but is in essence a regisstration with the local government certifying that they are aware of your business, and that it, as you intend to carry it out, is legal and in keeping with local ordinances and that under its current structure properly licensed.

3.

To operate your business you will require at the, very least, three filings.

1. A federal tax number to satisfy irs requirements for business of this type.

2. A dba to satisfy banking and tax filing requirements.

3. And a business tax registration to satisfy local business requirements.

07 - Here are the licenses and tax ids you are legally required to obtain before starting business operations: 1. A business tax registration license 2. A DBA assumed business name 3. A federal tax id number if you are a partnership or you want to use it instead of you social security number to open a bank account. Also, note that forming an llc or incorporating eliminates the requirement of getting a dba. It is a good idea to form an llc to avoid personal liability from business transactions.

All of these permits and more can be acquired for a reasonable fee online at www.businessnameusa.com

Simply fill out our online questonaire to be taken to our business information request form. For your convenience and ours please fill the business information request form out as completely as you are able, only leaving empty those fields which do not apply or to which you do not have the answer. Once you have done so, complete the payment form, and we will imediately begin processing your order.

www.businessnameusa.com

P.O. Box 14927

Long Beach, CA 90853

310-455-6675

1. Not having a feder tax id number can lead to audits, fines, seizure of assets both business and personal, and criminal charges, depending on how far afield from the IRSs legal framework ones strays as a result of not being properly licensed.

2. Without a dba, the cashing or depositing of any check made out to your business name and not you, and then the pursuant spending of that money, is embezzlement.  It will also be impossible to file the proper tax returns for your company if your business is not established properly as a fictional entity.

3. If you fail to license your business, you can face a range of penalties from your local government, from fines to misdemeanor charges to legal orders to halt business until you have acquired the proper licenses.

For all three suggested forms the total cost is roughly $250.00