Getting a business license?

[Former_Member]

At what point does it go from a hobby to a business? Is there a magical number you need to hit before you have to get a business licence?

I'm just curious when I need to become a real business.

Thanks for the advise.
~Ashley~

[CutenCraftyDesigns]

I'm not quite sure. I thought that whenever you wanted to start selling anything online that you needed a business license. I didn't know you could sell as a hobby at first or else I would have done just that. It's hard to understand things when it comes to business.

Sorry I couldn't be much help!

[TailsandSnouts]

It tends to depend on your location. Where I live to make it qualify as a business you either need to be location based, have an employee within the state, or make at least $2000 of taxable income per month. Those being some of the examples.

If you search either your state or area site it can give you directions of where and when you need a business license.

[Former_Member]

I'm making enough money to pay my bills, so I say I have a small business. No business license though..so I guess I'm not a "real" business, but whatever. (:

[HausofAriella]

I was actually wondering about this myself today. I went to sign the lease for my new apartment and they specified in the lease that it was for residential use only. I didn't know if my little side job (okay, really my only paying job, but that's because I'm in law school) counted as a business.

[Former_Member]

I think that the IRS has a description somewhere that states the difference between a hobby and a business, but I don't know if that applies to anything other than taxes. Sorry that I don' t have the link handy.

[JonEicher]

Cool mobiles!

You will have to contact your county to find out how they classify home based businesses.

Some require immediate registration to legally start a business even from your kitchen table while others have income thresholds like $100,000.00.earned income in a year from your "business" and don't care about little start ups from home earning less.

It is really all about taxes and the collection of them.

The next step is to decide if you want to incorporate or remain a sole proprietor. Incorporation has a lot of benefits professionally and financially.

Your state government is the place to start for more information on that one.

I hope that helps.

[BlingNThingsbyPenny]

In my city in California I was told if I sold more than every once in a while ( more than a couple times a year) then I had to get a business license. Also a state resale number.

[Former_Member]

I have been procrastinating on this, but I know it's important. One important part is that we will be taxed on our paypal income. If you register as a business and save all receipts, you can write off your costs and off-set the income tax.

[perpetualposy]

I was told by a tax person that if your income is less than $1,000.00 a year it is considered a hobby. However, if you plan to build your business, you then need to register as a small business.

[Former_Member]

When does the paypal taxing start?

[TheWishingElephant]

I know that paypal will send you a 1099 if you make over $20,000 a year. But I think it's when you start making a profit. Any profit.

[OneFairfaxRoad]

There is a team on Etsy focused on US Tax, Bookkeeping and Business License topics (just search for it under Teams). I have found it to be a wealth of information! Good luck!

[SkySpiritStudios]

First, business is a state of mind. Is it your hobby, or is it your business? If it is about business, full time or part time, get a business license in your home town. Be serious and others will take you seriously. In having a business license you are open to more opportunitities to grow. With a business license you can also choose to join the Chamber of Commerce. It is an excellent way to connect you to your community, other professionals and contacts building a reputation. You can do it!

[Former_Member]

In California you have to have a business license to sell anything online. I had to do it before I could even open my shop. Better safe than sorry. I think it's worth the small fee to help with my peace of mind. Also, I think it helps establish myself as a legitimate business. I started the company wanting to make money, so it helps solidify that as part of my business plan.