starting a business

[lrbd]

is there anywhere on the boards like maybe a list of where to start? If so I have had trouble finding it. What is first... LLC then insurance or insurance then LLC and then what. I know nothing and was hoping for some help. Thank you very much in advance for any help:confused:

[rebeccajo99]

I did LLC before insurance. That way the insurance company can write the policy in the business name. Do both before giving out your testers/selling.

[lrbd]

what about a doing business as instead of a llc? /Then what ? Don't you have to file anything with the state? and what about all the tax stuff? Where do you learn all that? Hey thanks by the way

[rebeccajo99]

are you talking about doing business under your name... for example

Jane Doe DBA ABC candle company???

I did not even consider doing that because I wanted everything out of my name. I currently have just an LLC, but plan to put a DBA under my LLC once I actually start selling. I just quickly did the LLC to get all the stuff out of my name when I started giving out testers.

As for tax stuff, I have a business degree, so I learned a lot of it at school. The stuff that I don't know, I ask my aunt who is an accountant. Your best bet on tax stuff... call an accountant. They will know what you need to do for your state.

[lrbd]

Thank you . I guess the best place to start is the LLC and get a Federal tax id #. Then Insurance. The insurance in itself seems like it will be difficult in NJ.Again thank you for helping me

[andy123]

You have to do LLC then get the insurance. Insurance can be a real expensive PITA if you don't know where to go.

Don't forget the county you live in they may want their chunck of change too.

I had to file with the County's Clerk Office to do business under an assumed name...and get a home business license. Depending of how much you end up making your county may want to taxes your equipment. So check your county's website they might have a SBA page with all the info.

I would stay away form the Federal Tax ID unless you are doing payroll.

I was able to open a business bank account without one and I still get to pay my taxes.

However you may want to get a sale tax ID# and that by itself is another can of worms.

Good luck and don't forget the Tylenol...

Edited August 26, 2009 by andy123
FYI: In case of lawsuit the LLC limits your liability to your business and your business only.

[lrbd]

ok andy let me see if I understand and by the way thanks for your patience and information.

1. I form a LLC

2. Find Product liability ins.

3. file with my town.

ok . You don't need a fed tax id. ? Do you just include your expenses and profits on you personal income tax forms? Again thank you all. I have no clue how to form a home based business. nor do I know who to speak to . If I can ever offer you PC help let me know . Thats my day job. which I am keeping by the way:laugh2:

[andy123]

Yep start with the LLC that's at State level and all the info should be on your state's website. You have to renew every year.

Then file whatever paperwork your county requires. Again your county should have all the info online. It's all about paying them a fee nothing more.

Insurance that's the hard part your home owner insurance won't cover you...I got mine with Indie Beauty Network but do a search on this site...I remember reading about other insurances companies.

No Federal tax ID unless you start making millions and have to pay taxes quaterly...Yes, you just file at the end of the year. Your home office becomes a tax deduction and all that good stuff so keep good records/receipts. The IRS has free publication so go to their website.

Sales Tax ID# is valuable if you want to buy wholesale some suppliers will not sell to you unless you have it. That's at State level you have to collect sale tax = your state % + your county % = declare earnings and turn the sales tax to the state quaterly or else...

Not very complicated once you know how...

[lrbd]

So are you saying you don't have to get a sales Tax ID# ? I was thinking regardless I would still have to collect sale tax. Is that right? Thanks so much:cheesy2:

Edited August 27, 2009 by lrbd

[andy123]

I use to have an ID# I don't have one anymore but my sales are only online and the items get shipped to other state so I wouldn't collect sales taxes anyway.

Now if you are buying your supplies in your own state then with an ID# you do not have to pay the sales taxes for items you buy and use to make your final product.

So let's say that you buy wax to make candles you do not have to pay the sales tax, now lets say that you buy a chair for your home office you have to pay the sales tax.

[lrbd]

So much to learn about the business part. I just love making the stuff. You have been very kind. If you sell your product and it is not online you have to charge sales tax correct? I will be meeting with an accountant as well until I understand.

[andy123]

No, you charge a sales tax if the item stays in your state...so even if it is bought online and gets shipped within your state you have to collect a sale tax. For example if you are selling your candles at a local craft fair then you have to charge a sales tax.

When you do your quaterly filling with the state you get ask how much you've earned, and how much of that qualifies for sales tax...whatever is sold in your state and stays in your states qualifies for sales tax.

I don't know about your accountant but mine had no clue...the best place to get all the right info is to contact your State's Department of Taxation...lovely people.

I think I should write a manual on how to start a small business.:rolleyes2

Good luck.

[lrbd]

I think I should write a manual on how to start a small business.:rolleyes2

Good luck.

I think you should too. YOu have been very helpful. I can't thank you enough. I have so many more questions . would be great to have a how to ....to read

[missymssy]

Is it possible it isn't allowed where you live? I looked into all this months ago, but did a lot of it backwards. Registered a business name, attended a small business start-up seminar, and bought a lot of supplies. The last thing I did was go to my municipal building (nothing is online in my town), where he basically said "NO way. Your street is zoned residental only". So, I just accepted that. I was upset about it, sure, for a while, but I figured that was that. Recently, though, I was talking to a friend about it, and they said they never heard of such a thing. Anyone run into this?

I rent (not homeowner), but he told me it made no difference. It's how the street is zoned.

Melissa

[soulm8socal]

The city probably thinks you're opening a store at you place, that's why he mentioned it was residental only. If you push the point of an online/mail order business, with no customers or sales happening at your residence, they should have a license for that. I came across that same thing when I started, and after explaining what I was going to do, they were extremely helpful in telling me the exact license I needed. The annual fee was over 50% less than I thought it would be... A win/win.

Also, a session with a qualified tax pro (lawyer, CPA, not H&R Block) to discuss issues with starting a business, fees, taxes, etc. Here in California (which is very small business unfriendly) any corporation must pay a minimum of $800 per year in taxes whether or not you made any money. ( they are "nice" enough to let you do the first year without paying the tax), So I'm currently researching getting a corp in another state, Nev, Wyoming, Deleware. Take your time, write everything down, research, research and research... oh btw did I mention research? One last thing, make sure everything is done right, have your Lawyer look over everything, yes, it will cost some money, but in the long run, will save you even more. Three simple letters to remember: CYA (Cover your A**)

Is it possible it isn't allowed where you live? I looked into all this months ago, but did a lot of it backwards. Registered a business name, attended a small business start-up seminar, and bought a lot of supplies. The last thing I did was go to my municipal building (nothing is online in my town), where he basically said "NO way. Your street is zoned residental only". So, I just accepted that. I was upset about it, sure, for a while, but I figured that was that. Recently, though, I was talking to a friend about it, and they said they never heard of such a thing. Anyone run into this?

I rent (not homeowner), but he told me it made no difference. It's how the street is zoned.

Melissa

Edited September 11, 2009 by soulm8socal

[Candybee]

Check with your town and county seats regarding zoning. My town required a zoning certificate when I started my biz. I got a zoning certificate for a home biz along with a town license and filing my biz name with the county courthouse. You may also be required to get a town and county biz license.

You'll also want a sales and use tax ID from your state department of taxation. You can get the sales tax ID online thru your state dept of taxation. You can also get tax report forms online so its good to get familiar with the website for your state.