| Pages in topic: < [1 2] | Poll: Are you officially registered as a business? Thread poster: ProZ.com Staff
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neilmac
Spain
Local time: 17:58
Spanish to English
+ ...
| A glass half... | Feb 21, 2014 |
bohy wrote:
This is a perfect example of a question which may sound clear in the context of a specific country, but becomes very ambiguous (and hard to translate) in a global context.
IMHO, this is a also a good example of a question which may sound clear in the mindset of a specific person, with all its concomitant assumptions, yet remain murky or impenetrable to others.
| | | | Michael Harris 
Germany
Local time: 17:58
Member (2006)
German to English
Michael Wetzel wrote:
I answered "yes", because in Germany you do have to notify your tax office that you are working as a freelancer ("Anmeldung einer selbständigen Tätigkeit"), although it's incredibly easy and, as Michael Harris wrote, it doesn't even involve getting a new or separate tax number for your "business" (which, however, is not a "Gewerbe" - so maybe it's not a business at all).
My company tax number is different from my income tax number
I only got the comoany tax number after I went full time self employed, before that, everything went over my normal income tax number
| | | | | lost in translation | Feb 21, 2014 |
By company, do you mean "Gewerbe"? I have a VAT no. that I put on my invoices, but I still file my income tax together with my wife under a single tax number. That doesn't have anything to do with being part-time or full-time self-employed.
In Germany, translators are listed in the catalogue of "freie Berufe" ("liberal professions": lawyers, doctors, architects, etc. ... and translators) and don't NORMALLY have to register as a "Gewerbe", don't have to pay "Gewerbesteuer", don't hav... See more By company, do you mean "Gewerbe"? I have a VAT no. that I put on my invoices, but I still file my income tax together with my wife under a single tax number. That doesn't have anything to do with being part-time or full-time self-employed.
In Germany, translators are listed in the catalogue of "freie Berufe" ("liberal professions": lawyers, doctors, architects, etc. ... and translators) and don't NORMALLY have to register as a "Gewerbe", don't have to pay "Gewerbesteuer", don't have to register with the IHK and don't have to meet the standards set for normal businesses in terms of the complexity of their accounting.
I wrote "NORMALLY" because, of course, things are rarely normal and I may have misunderstood you in the first place. ▲ Collapse
| | | | Kate Deimling
United States
Local time: 11:58
French to English
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| The different country contexts are interesting; U.S. perspective | Feb 21, 2014 |
Hi everyone,
It's interesting to see how differently the question can be interpreted according to different countries' laws and customs. From a U.S. perspective, I took it to mean, "Are you incorporated as a business?" I answered "no, and I don't plan to," because I don't see any reason to incorporate as a business unless I were to shift from being an independent contractor to running my own translation agency.
I guess it could also mean, in a U.S. context, "Do you hav... See more Hi everyone,
It's interesting to see how differently the question can be interpreted according to different countries' laws and customs. From a U.S. perspective, I took it to mean, "Are you incorporated as a business?" I answered "no, and I don't plan to," because I don't see any reason to incorporate as a business unless I were to shift from being an independent contractor to running my own translation agency.
I guess it could also mean, in a U.S. context, "Do you have a business tax i.d. number which is not your social security number?" I believe you can do this very easily without taking any steps to officially incorporate yourself as a business. I use my personal social security number when filing my taxes, but my accountant has suggested that I could get an E.I.N. or employer identification number that would keep my social security number more private (e.g., when filing W-9s, requests for taxpayer identification number, with agencies or clients I work for). I haven't taken this step yet and I'd be curious to hear whether other U.S.-based translators think it's a good idea.
I also work as a freelance journalist for a French publication, and when I got the job my editor asked whether I had the ability to issue invoices. I was surprised, since in the U.S. anybody can issue an invoice if he or she so wishes. It is generally quite straightforward to set oneself up as a one-person business here (and I have sometimes met people who list 4 or 5 different things they do on their business cards -- I guess that's the entrepreneurial spirit, though perhaps entrepreneurial fantasy may be a better term ). ▲ Collapse
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| As the smallest of small fry... | Feb 21, 2014 |
In Denmark, the thresholds are very low for VAT registration etc. so there is no question, even for quite small 'businesses' about registering.
Some people even have two or three, though I fail to see why they bother.
On the other hand, running one as a one-person show is as uncomplicated and painless as anything ever is in Denmark - provided you behave and pay your taxes on time.
It gets more complicated as soon as you have stocks of products, and even wor... See more
| | | | Joshua Lee (X)
United Kingdom
Local time: 16:58
French to English
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| No, but I plan to... | Feb 21, 2014 |
Here in the UK you need to register as self employed, which I take in this context as meaning having registered as a business. You receive a new tax ID called a UTR and have to file taxes differently than if you were employed.
| | | | Anthony Baldwin
United States
Local time: 11:58
Portuguese to English
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| sole proprietorship | Feb 21, 2014 |
Registered with the city as a sole proprietorship, meaning the business has the same taxID (SS#) as me, so not a separate entity, but registration as a business entity was necessary for opening bank accounts for the business to deposit and cash checks written to my business name.
| | | | Eleonora Chyc
United Kingdom
Local time: 16:58
Russian to Ukrainian
+ ...
| If you're self-employed(run a business)in the UK,you have to register with HMRC | Feb 21, 2014 |
within 3 months of starting (of course, you can do it on your first day ) . It's a business, even if it's a one-man band.
You sell your services to different customers ,for example, translating agencies or direct clients (not one company, it can happen, though, in a case when you start providing your services a month before the end of the tax year and you had only one client ). When you register you get a unique taxpayer reference (UTR)
You can but you don't have to name your busine... See more within 3 months of starting (of course, you can do it on your first day ) . It's a business, even if it's a one-man band.
You sell your services to different customers ,for example, translating agencies or direct clients (not one company, it can happen, though, in a case when you start providing your services a month before the end of the tax year and you had only one client ). When you register you get a unique taxpayer reference (UTR)
You can but you don't have to name your business .It costs.
You have to set which class of NI contributions you want to pay. You can ask for an exempt as well if you know you will not earn much . You can claim a refund if you don't earn much in your first year, for example .It depends whether you work both as an employee and self-employed, for example, and you pay NI contributions in one of your job.
If you don't earn more than £9400 in a tax year you won't pay any tax on your income
whether it's from your freelancing(business/businesses) or both from working for an employer (full-time or part-time) and freelancing .When you pay it - in advance or at the end of the tax year , you have to ask HMRC .
Am I right , Chris S, M Anna Kandula ?
It's from HMRC site :
You are self-employed if you are :
•run your own business and take responsibility for its success or failure
•have several customers at the same time
•can decide how, when and where you do your work
•are free to hire other people to do the work for you or help you at your own expense
•provide the main items of equipment to do your work ▲ Collapse
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Mario Chavez (X)
Local time: 11:58
English to Spanish
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M. Anna Kańduła wrote:
I'm not sure I understand the question. "As a business" meaning do I own a (one-person) company? No. Am I registered as a self-employed (running a business)? Yes; wouldn't it be illegal not to be registered in most (all?) countries?
Self-employed professionals (not just translators) may have to register in certain municipalities, provinces and/or states in certain countries. It's not a universal requirement.
Here in America they have several legal schemes under which a single person (meaning only one, not his or her marital status) may work professionally as a business. Some are sole proprietorship, DBA (doing business as), LLC (limited liability company) and simply working under your own name (such as Anna Kańduła Honest-2-Goodness Translations).
In most American cities, you may operate as a translator without ever having to register anywhere because translation is not a regulated activity (unlike court interpreting in most states and at the federal level). One of the exceptions is New York City. If you live and work in any of the five boroughs (Queens, Manhattan, Brooklyn, Staten Island or The Bronx), you have two choices: either incorporate (register as a business such as a LLC or INC) or pay a separate tax to the Department of Finance, New York City (which is in addition to federal, state and city taxes).
Not incorporating to work in New York can be more expensive. I know this first hand.
| | | | Mario Chavez (X)
Local time: 11:58
English to Spanish
+ ...
| Same here in the USA | Feb 22, 2014 |
Michael Wetzel wrote:
By company, do you mean "Gewerbe"? I have a VAT no. that I put on my invoices, but I still file my income tax together with my wife under a single tax number. That doesn't have anything to do with being part-time or full-time self-employed.
In Germany, translators are listed in the catalogue of "freie Berufe" ("liberal professions": lawyers, doctors, architects, etc. ... and translators) and don't NORMALLY have to register as a "Gewerbe", don't have to pay "Gewerbesteuer", don't have to register with the IHK and don't have to meet the standards set for normal businesses in terms of the complexity of their accounting.
I wrote "NORMALLY" because, of course, things are rarely normal and I may have misunderstood you in the first place.
Thanks for this brief but comprehensive primer
| | | | Mario Chavez (X)
Local time: 11:58
English to Spanish
+ ...
Kate Deimling wrote: Hi everyone, It's interesting to see how differently the question can be interpreted according to different countries' laws and customs. From a U.S. perspective, I took it to mean, "Are you incorporated as a business?" I answered "no, and I don't plan to," because I don't see any reason to incorporate as a business unless I were to shift from being an independent contractor to running my own translation agency. I guess it could also mean, in a U.S. context, "Do you have a business tax i.d. number which is not your social security number?" I believe you can do this very easily without taking any steps to officially incorporate yourself as a business. I use my personal social security number when filing my taxes, but my accountant has suggested that I could get an E.I.N. or employer identification number that would keep my social security number more private (e.g., when filing W-9s, requests for taxpayer identification number, with agencies or clients I work for). I haven't taken this step yet and I'd be curious to hear whether other U.S.-based translators think it's a good idea. I also work as a freelance journalist for a French publication, and when I got the job my editor asked whether I had the ability to issue invoices. I was surprised, since in the U.S. anybody can issue an invoice if he or she so wishes. It is generally quite straightforward to set oneself up as a one-person business here (and I have sometimes met people who list 4 or 5 different things they do on their business cards -- I guess that's the entrepreneurial spirit, though perhaps entrepreneurial fantasy may be a better term ).
Hi, Kate!
It took me about 20 years to decide to incorporate. When I did, I chose the form of a pass-through LLC and got my own EIN. Incorporating in the state of Ohio is pretty straightforward and inexpensive. And an EIN number is free (thank you, federal government).
Your accountant may have a point if you're concerned about your own privacy.
Some of the advantages of an LLC vs. an INC are:
1) No need to have a board of directors and keep records of meetings and such. You can operate as a sole proprietor.
2) The beauty of a pass-through LLC is that you still use your schedule C for your taxes, since the IRS considers you and your LLC one and the same (hence, pass through).
3) It's a simpler form of business corporation that could come in handy when working with other companies (government contracts or any contracts entered into with state or federal agencies).
I know that some love big-sounding titles, such as Director of Translation Workflows to mean that they're the primary translator in their firm. Of course, having an LLC doesn't mean that you have to have an agency. I consider my company (Wordsmeet LLC) a multipurpose company: translations, typesetting, on-site software testing, translator training, etc. I try to focus my LLC on projects and not necessarily on pages or word counts.
Are you going to Chicago this year?
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