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When you need to register for a business lic?


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I did it backwards I think when I started in 2002. I actually had my name and business license before I even made a website or one product for sale.

Looking back, I wish I would have waited a year before doing that as I didn't make anything the first year at all.

Check with an accountant, they can really help you out when it comes to this kind of thing. I didn't get one until the year after and wished I would have gotten one the same year I started my business!

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You need to register and get a business license before you sell anything. Everything you sell in your state must have sales tax collected. Even if you don't make anything, you can still claim expenses on your taxes. But you cannot sell without a license. It doesn't cost much to get one in most places either :)

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Jbarb:

Before taking one or two posters opinion as "Gospel" when it comes to "registering" or "licensing" your activity, I would think it prudent to be sure you ARE a business, and wish to be a business! Believe it or not "intent" has an awful lot to do with whether you indeed are a business!

Also, rules are different in different states.

As a suggestion do a GOOGLE on "Business or Hobby", and you will find lots of information!

Good luck...Bill

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Try checking with the Secretary of State website for your state -- there should be pertinent information there. Also try the revenue department (the dudes and dudettes who deal with taxes for your state). I found both sites in my state to be very helpful in starting out. HTH, and good luck! :)

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Jbarb:

Before taking one or two posters opinion as "Gospel" when it comes to "registering" or "licensing" your activity, I would think it prudent to be sure you ARE a business, and wish to be a business! Believe it or not "intent" has an awful lot to do with whether you indeed are a business!

Also, rules are different in different states.

As a suggestion do a GOOGLE on "Business or Hobby", and you will find lots of information!

Good luck...Bill

If you are selling products, you need to collect sales tax. To collect and report sales tax properly, you need to be registered with your state. In many places, this means getting a local (city or county) business license and then applying to the State Taxation Department/Dept of Revenue for a tax ID. If you have any doubts, check with your local city or county. Most places have all this information on the web now. You can also call a local business attorney. Do not be fooled into thinking that you don't need a license. If you're selling to make a profit (and not just giving as gifts), you need to be licensed.

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I know in my state, filing to be a business was recommended, but optional. I was able to get my sales tax license without filing as a business.

Check with your state online, and you are sure to find what you need. I was able to send an email with the questions I had, and I got an email back with links telling me where to go.

Good Luck!!!

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Jbarb:

Before taking one or two posters opinion as "Gospel" when it comes to "registering" or "licensing" your activity, I would think it prudent to be sure you ARE a business, and wish to be a business! Believe it or not "intent" has an awful lot to do with whether you indeed are a business!

Also, rules are different in different states.

As a suggestion do a GOOGLE on "Business or Hobby", and you will find lots of information!

Good luck...Bill

You SHOULD take this as gospel :smiley2: . Very good info. Don't foot around, find out for sure through your state comptoller, to find out what sort of things you must do. A good place to start is go to you county courthouse. They will sit down and explain ALL you have to do to get started. You can find yourself in a heap of trouble by not following guidelines.

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  • 2 weeks later...

Yes, each state is different. In Illinois I had to get a license and a tax number. In Wisconsin just a business registration number (includes tax number). If you have employees, its federal emplyee ID number (FEIN), withholding, workers comp... (AHHHHHHH!). Also in Wisconsin, if you have sales less than $2000, you dod not need to get a tax number or colelct tax, but you must pay the tax on in-state purchases. Check your states website and Treasury Agency.

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