DAY 25

[TOMgirlApparel]

DAY 25: Legalities

Check with your local county/city/state for legal requirements specific to your area. Here are general US requirements:

1. Determine the Legal Structure of Your Business
Decide which form of ownership is best for you: sole proprietorship, partnership, Limited Liability Company (LLC), corporation, S corporation, nonprofit or cooperative.

2. Register a Business Name ("Doing Business As")
Register your business name with your state government.

3. Get a Tax Identification Number
Learn which tax identification number you'll need to obtain from the IRS and your state revenue agency.

4. Register for State and Local Taxes
Register with your state to obtain a tax identification number, workers' compensation, unemployment and disability insurance.

5. Obtain Business Licenses and Permits
Get a list of federal, state and local licenses and permits required for your business.

Links with more information on the steps above here:
http://www.sba.gov/content/follow-these-steps-starting-business

Looks daunting, but take it one step at a time. Get legit. I accomplished all of these things in a few day time span. One day was a lot of driving around, paper work, and fees, and then another day of a few more steps. Really wasn't that bad. In addition, I set up a business bank account so that I could keep my finances separate from my personal bank account and also so I could accept payments made to my business name. Do it :)

[TomboyPrettyJewelry]

Wahoo - done including separate business banking account.

[ThePartyDeeva]

No 1 done
No 2 done
No 3 done
No 4 done
No 5 almost done

Need to set up business banking account. It's time to do it.

[IntuessaJewelryCo]

Today is an easy day for me :) All done, including business bank account.
Back to photos, tags and titles for me.

I have been thinking about number 1 recently and contemplating if being a sole proprietorship makes the most sense tax wise. I have to do some research on that. Not sure if I am over thinking things there.

[Former_Member]

All done except for the business bank account. I have two separate accounts, but the one I run the businesses thru is just a personal account, I may rethink opening a business account for at least one of the two shops to keep things from getting confusing.

[Former_Member]

Woohoo! I had this locked up before I opened! The one direct skill that translated over from my day job.... ;-)

[BlackCrowCurios]

I haven't done any of these. I may remain 'unlegit'

[swaddlemesnugly]

My first step is to find out how to handle the 4 shops that I have on Etsy - this one, AccessoriesByKelli and 2 others. KoolKidsByKelli has been dormant for over a year but I haven't closed it. MyHerbalNotions was opened by my daughter and she couldn't put in enough effort to keep it open, I have hopes of reopening it and managing it for her. I don't want to get separate legal paperwork done for each of the 4 shops, need to figure out what legal structure would be appropriate to deal with all 4 shops "doing business as" Kelli Enterprises" or some such thing.

[Maiook]

I had to get all these done before I even started my business.

[Former_Member]

1. I'm a Limited Liability Company (LLC),
2. Register a Business Name ("Doing Business As"). Done
3. Get a Tax Identification Number - aka my Social Security Number
4. Register for State and Local Taxes
This has been on hold for a while due to a technicality with another business venture we were going to do then didn't. I really NEED to get this fixed.
5. Obtain Business Licenses and Permits - none needed in my area, as far as I"m aware.

[KaterinaCollection]

Tracy had all the state stuff done before we even met. In fact, he made submissions online just yesterday:) He used to make a bit more money on Ebay. (He no longer has the machines to create the vinyl stickers/wall hangings, so going that direction is not a possibility right now.) I let him handle the legalities since he's been in Utah quite a bit longer than me. We'll revisit the structure and federal stuff in October, after we're married.

Currently we don't have a separate business account, but plan to open one next month.

[TOMgirlApparel]

Valerie, getting a tax ID is fast, easy, and free! Can be done online in minutes here: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Apply-for-an-Employer-Identification-...

Better than handing out your personal social security number.

Double check your state requirements about licenses. Here is a link for each state: http://www.sba.gov/content/what-state-licenses-and-permits-does-your-business-need

This is what it says about Pennsylvania: http://www.businessnation.com/services/licenses-permits/pennsylvania-business-licenses/

[Former_Member]

All good
I also do not have an EIN
But haven't given out my soc either
I've just had to use my state sales ID
And my biz account is setup - linked to personal for easy funds transfer.

[VintageRescueSquad]

I'm all legit—except I need to get a county permit for the monthly barn sale I do. It's across state lines, so they're making me jump through hoops. I've been 3 times, and every time they tell me I need something new. You can only do it in person, and only 9-5, which means I have to burn a vacation day and take off from my job to do it. I'm at my wit's end.

[Former_Member]

This is my next step. Will work on this Monday :)