Business licensing, taxes, etc. Help!
Hello!
Selling my products to friends and family at a minimal cost (not even making 2% of my annual income) doesn't seem like a big deal - but what about when I'm about to go public? My website is nearly complete and I'm almost ready to sell to the U.S. public.
How many of you have obtained small business licenses and carry insurance to insure liability for any products?
I want to have my bases covered, but I don't want to spend the money on a business license, insurance and registration with my SOS or IRS when I don't think I'll be making more than 5% of my annual income.
When do you make the decision to get a license? When your sales generate more than 10% of your annual income?
Any information is greatly appreciated.
Selling my products to friends and family at a minimal cost (not even making 2% of my annual income) doesn't seem like a big deal - but what about when I'm about to go public? My website is nearly complete and I'm almost ready to sell to the U.S. public.
How many of you have obtained small business licenses and carry insurance to insure liability for any products?
I want to have my bases covered, but I don't want to spend the money on a business license, insurance and registration with my SOS or IRS when I don't think I'll be making more than 5% of my annual income.
When do you make the decision to get a license? When your sales generate more than 10% of your annual income?
Any information is greatly appreciated.
Replies to This Discussion
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Permalink Reply by Always the Forest on
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Hey! I sell clothing and accessories in my online store. I also sell at various arts and craft fairs. I licensed my business at the beginning because it seemed easier to just get it over with. I registered my business with the state of Michigan (where I live), and then obtained a Federal Tax ID (for purchasing wholesale). I believe it cost me $50. I don't need to have insurance for it. I only need to charge Michigan residents tax. I think that's about it for me.
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Permalink Reply by Kris Kelley on
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So - I checked out the chamber of commerce's site for my county and got all the information I need to obtain a business license, do my trade name, obtain my state tax ID and federal tax ID.
Thanks so much for your response! :)
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Permalink Reply by Kinichi River Designs on -
Good for your for going through with it and getting your license. I got mine as soon as I started selling to the public. I think its so important to be legit right from the begining. In PA, the process was not that difficult, either.
And I just moved to a new town that does not need a town or county lisence. I was very pleased about that! :)
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Thanks! The whole process was so simple and easy. I got my license last week, and went live with my online store yesterday! It sure felt great :)
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