business license as a independent contractor business license as a independent contractor? On 2/21/2012 1:26 AM starting Jody DeSantis Business Development Specialist. a Sales of online service product to school food service directors       Services Sales and marketing consultant with 0 employees in Austin, TX  , 78738, San Antonio Hays County             My business consists in dealing with real person to person encounters. vii - You need a business tax registration and a fictitious business name registration.  In lieu of registering a ficitious business name, You could become an S  or C corporation or set up an LLC.           Protect your personal assets and avoid suits that might ensue from business consists in dealing with real person to person encounters. Click Here to Submit It. Frequently Asked Questions: Q: I started a business as a partnership but never really took off. Do I still need to file an IRS return? A: If you filed for a a partnership but never started a business, you need to file a tax return anyway and just fill out the gross business income as zero. Otherwise the IRS will charge you with a penalty for non filing the return. Q: What if the independent contractor is an LLC or corporation, do I still need to send them a 1099 form? A: To be safe, yes, send everyone that does any work for you for more than $600 a 1099 form. Q: What is the threshhold before I am required to file a business tax return? Even if you made $0 dollars, you still need to file a business tax return. Q: What is an EIN? A: An EIN is an IRS employer as well as business tax ID number. TX Tax ID Number. TX Tax ID.