Jim Henderson wrote:
> Because you were talking about tax on the proceeds from sale of 
> products.  That's distinctly different from income.

Oh. Well, I was talking about income tax on the profits on sales of goods.

> If I sell 10,000 items for $20 each, then I'm working for a company 
> that's reporting it. 

Why do you say that?

> As an individual, it would make more sense to 
> incorporate and have the profits go to the business for reasons I already 
> discussed earlier.

Yes, but it's not required by law.

>> No.  A corporation is a separate entity.  That's orthogonal to whether
>> you need a license to do business.
> 
> It was my understanding that you had to have a business entity in order 
> to get a business license. 

You do. The business entity can be a sole proprietorship.

> K, fair enough.  When you say "involvement", I picture direct involvement.

If you set up your bylaws properly, you can just say "I followed the rules 
for setting up the bylaws."   You can do everything by mail. But the IRS has 
to at least get involved to the point where they issue the appropriate 
certification that your entity is tax exempt. I.e., they're at least as much 
involved as they are when you pay your income tax.

-- 
   Darren New, San Diego CA, USA (PST)
   There's no CD like OCD, there's no CD I knoooow!

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