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so i think i'm going to give my little business a go - but all i've done so far is bought supplies, made some items, sent out some testers and sold a few as well.

what do i need to know about taxes? business licenses? some places that i might order wholesale from require a tax id # - what is this and how do i get it?

i don't even know if i'll make any money and if i do, i don't predict it being very much - i'm really hoping to just break even to begin with! my inlaws are very supportive and have agreed to give me a 0% interest loan to get started
so that's awesome!

any advice is very much appreciated! tia!
 

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Federal tax ID number is free. It is know as an EIN or TIN. YOu can google it I am sure and come up with it. I filled out hte form online, and was given my number when I was done....

Business license. Depends on your state. I had to pay Arizona 12.00 for one. I had to file an ap online and then I printed something off and sent them a check. I htink if htey get money you are apporved. LOL For the city. mine was 50.00 per year, and They called me 3 times to ask about zoning stuff, customers, internet. delvieries, everything. But after 3 weeks htey approved. I live in a strict city for this stuff though. Yes you need one. I operated a few months without one. Shame on me!!! Now i have the privilege to charge sales tax. yay!!!

Kelly, you need to go for it!!! I LOVE your stuff. I washed the shirt last night and emma wore it again today LOL

DOnt forget to let me know when you have more stuff in stock!!!!
 

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imgr8ful said:
what do i need to know about taxes? business licenses? some places that i might order wholesale from require a tax id # - what is this and how do i get it? QUOTE]

I'm in CA: I needed
1) a retail license (not a tax id# because I have no employees other than myself) which was free from the Board of Equalization
2) a business license (which was about $150+ because my city charges an insane amounts)
3) file a "Ficticious Business Name" with the County which was I think $50 and then another $50 ?) to have it published in a local paper for the required time frame

I think that was it....

As far as purchasing wholesale, I only need to provide my retail license #.

Good luck!!!!!
 

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From what you ladies are saying, it looks like you need Federal, State, County, and Town paperwork?

I ask because I am having trouble figuring out HOW to figure out what I need to fill out! Who did you contact to get your list of "must do's"?
 

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Check your state's website for info on local requirements. I'm in Utah and I was able to do almost everything online. I needed a state tax ID and city business license. I did have to go to my city building to get my biz license, but that was just a matter of filling out one sheet and paying the fee.

You'll probably have to pay your state sales tax (if you sell in state) yearly and of course federal tax on your income yearly as well. I'd advise you go to the library or bookstore and get some books on small/home business bookeeping. If you don't keep records accurately, doing end of year biz income tax can be rough (to say the least).

If you start your biz as a sole proprietorship (meaning you and the biz are one.. your not a corporation or partnership) then you file your biz income with your other family income on your regular federal forms. If you have less than 5K in expenses and turn a profit then there is only like two extra pages to fill out and it's easy (again.. as long as you've kept good records.. otherwise expect to be hunting down receipts and doing math until your eyeballs pop out of your head).

I was *very* intimidated by all this stuff at first, but a few decent home biz books and some time spent scouring my state's website I realized it's not really too hard to figure out.

Hope that helps and best of luck!
 
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