IRS qualifications/requirement for small business

[88GT]

I am trying to find if my business qualifies as a small business per IRS requirements. My google fu is not coming up with the definition of a small business per IRS regulations. I assume since the biz is just me, it is. But I figured there is probably more to the definition and I will be filling out a .gov form when I answer this question so I don't want to get it wrong. Is it really just the number of employees or is there some other set of requirements?

As an aside, does 1/16 Cherokee qualify me as a Native American "minority" for government reporting purposes.

 

[hoosierdoc]

What question are you looking that to see if it matters if you're a small business?

 

[88GT]

It's asking me if the business entity is a small business. Correction: the exact wording is "Small Business Owned?"

 

[mrjarrell]

IANAA. You should consult your accountant. If you're a business and you don't have one, you should acquire one. They can answer your questions. A wrong answer could land you in the pokey or worse.

You're already a minority, as a woman. Don't try the American Indian angle unless you're a registered tribal member.

 

[88GT]

IANAA. You should consult your accountant. If you're a business and you don't have one, you should acquire one. They can answer your questions. A wrong answer could land you in the pokey or worse.

Not in this scenario. I just have an aversion to dealing with government lackeys in HUD and a wrong answer increases the likelihood I will have to do that more. The purpose of the form is not dependent on whether or not I actually qualify as small business. IOW, I am not benefiting from the claim one way or the other.

You're already a minority, as a woman. Don't try the American Indian angle unless you're a registered tribal member.

Female is not a minority option in the list. I know lots of men think females are a different race, hell, a different species, but as yet, the government doesn't think so.

 

[hoosierdoc]

Weird question. If not a subsidiary, what do they mean "small business owned"?

 

[dirtfarmerz]

I went to a government office to fill out a form. I don't remember them asking anything about a "small business". The question was more about being a "sole proprietorship". Here's a quote from the second link: "A sole proprietorship is a one-person business that is not registered with the state as a corporation or a limited liability company (LLC)."

Sole Proprietorships --- IRS Information = Forms

Sole Proprietorship Basics | Nolo.com

 

[88GT]

Weird question. If not a subsidiary, what do they mean "small business owned"?

I have no clue. Hence my question. It's the .gov. The instructions don't even explain the question.

 

[hoosierdoc]

I have no clue. Hence my question. It's the .gov. The instructions don't even explain the question.

Abolish the IRS. "Fair Tax" = national sales tax.

i hate IRS compliance. Half the time the IRS either doesn't know an answer or they give you incorrect info

 

[Cameramonkey]

Female is not a minority option in the list. I know lots of men think females are a different race, hell, a different species, but as yet, the government doesn't think so.

In certain scenarios, the govt kinda does think so. They are called Minority owned businesses or Women's Business Enterprise. Both are given preferential treatment in the bidding process of certain gov't projects.

 

[88GT]

In certain scenarios, the govt kinda does think so. They are called Minority owned businesses or Women's Business Enterprise. Both are given preferential treatment in the bidding process of certain gov't projects.

I repeat: "Female is not a minority option in the list."

There was a separate question regarding the status of the business owner's plumbing.

 

[Henry]

See IRC 1361, 1362 and 1363.

 

[Gluemanz28]

I set up a LLC about eight years ago and paid an attorney $500 to set it up. I have seen cheaper options on the internet but I didn't have the time to do it myself. I have gotten a lot of mileage out of the LLC and the peace of mind was worth it. I use an accountant as well for my taxes and he only charges us $325. We have children in college. I have a real job besides my LLC. My wife is in sales and has vehicle and other expenses as well. We file long form so I would jump off a cliff if I had to keep up with the latest tax mumbo jumbo and fill them out.

 

[mom45]

Do you file a business tax return or have a business ID number through the state? If so, I would say you are a small business owner.

If you file income from this "small business" using your social security number as your ID, it could be considered a hobby rather than a business.

 

[hoosierdoc]

She may be a small business owner, but it is asking if the business is small business owned. What on earth does that mean?

 

[KittySlayer]

I am trying to find if my business qualifies as a small business per IRS requirements.

Are you sure it is the IRS Regulations you are looking for? There are a number of sizes (Income, Assets, Employee Count) within the IRS Regulations depending on the particular tax, deduction or reporting area but there is not one single definition of a small business for IRS purposes. In addition, there are very few minority owned definitions in the tax law.

There are many other areas of the government that do have small business definitions and perhaps you need to search those regulations.

 

[88GT]

It is a HUD document for real estate purposes. It does not tell me what definition I need to use for "small business."

Doc, I can only come up with the idea that while the company itself may qualify as a small business, if it is a subsidiary/DBA of a non-small business, it wouldn't be small-business owned. Example: XYZ Realty only has 12 employees, but is owned by XYZ Enterprises which has several thousand. that's my best guess. I hate .gov forms. I hate .gov.

 

[88GT]

Do you file a business tax return or have a business ID number through the state? If so, I would say you are a small business owner.

If you file income from this "small business" using your social security number as your ID, it could be considered a hobby rather than a business.

It would be a sole proprietorship. Never seen a "hobby" have to pay the self-employment tax.

 

[KittySlayer]

It is a HUD document for real estate purposes. It does not tell me what definition I need to use for "small business."

Do your Google search for HUD rather than IRS then.

 

[DoggyDaddy]

I have no clue. Hence my question. It's the .gov. The instructions don't even explain the question.

In your case it sounds as though they may have been referring to a property? "Small business owned" as opposed to owned by a private individual? Just guessing though.