seeking help!

[smcmanus1]

I will try to make a long story short. 5 years ago we (me and my wife) started a small catering business, due to the trade (commercial printing) I was in has takin a big hit in California. We were able to add some much needed extra money to our household. We let the businesses die off when I went back into printing. Now things have calmed down in our life and would like to start pursuing the catering again. We have changed the name, and are seeking information on changing the structure from sole proprietor to s corp with cash option.

So my question is:

1. What are the legalities of the same type of business being closed and opened in such a short time frame?

2. The business is just me and my wife, or goal is to open a brick and mortar, we are looking for what it's best for growth.

3. What is the deadline for claiming it on 2014 taxes?

[vangogh]

I'm not really the best person to answer your questions, but I wanted to make sure you got an answer and to keep your thread active.

It shouldn't be an issue opening the business again, especially if you were a sole proprietor. As far as taxes are concerned, sole proprietor is a fancy way to say you don't collect a W2 and will fill out an extra form to show your income and deductions. It shouldn't be an issue registering a trade name again either. If you were a corporation and close to not have to pay debts or taxes and then reopened shortly after your obligation to pay went away, then I'm sure someone would look into it, but I wouldn't worry in your situation.

With opening a brick and mortar, I'd probably start thinking as soon as you can about whatever expense you'll have so you can start putting money away. Also just so you can gain some kind of feel for how much it'll cost each month to run a business with a physical location and based on the expenses, how much you'll need to take in as a business. Think about the finances to give you a better idea when you'll be financially ready. Why not keep your eyes open for locations you'd like and if any become available.

Keep building the brand of the business. I assume you'll start catering before you have a location. If that's true then just keep doing a good job and building a reputation. Make sure people know you and remember you. Anything you can do to help the business in general will get you into a location sooner.

The taxes question, I'm not sure about at all. I'll pass on this one, since I'm just as likely to give bad information as good. Hopefully something above makes up for my lack of an answer to this question.

[smcmanus1]

Thank you for your help it is much appreciated. Yes we will be catering prior to a brick and mortar, we are a husband and wife team and both work full time jobs. Financing will take some time as we can't take what little money we have from our household to fund this.