How to start a business? Do I have to pay? - Hip Girl Boutique Free Hair Bow Instructions--Learn how to make hairbows and hair clips, FREE!

alibug · #1 (**permalink**) 10-15-2007, 11:44

okay, I am totally confused. I have no idea what to think. Does anybody know if I have to sign up for something because I am selling my bows for profit? I don't want to get in trouble with the IRS! haha. Do I charge sales tax on my products? Help!

OakleyDaisys · #2 (**permalink**) 10-16-2007, 07:50

You can go to your states website and sign up for a tax ID # and then you can start charging tax. It's free to sign up

OakleyDaisys · #3 (**permalink**) 10-16-2007, 10:25

Quote:

Originally Posted by Judy74

do you think at the end of the year you can write off a good chunk of your supplies since it is "needed" for your business? :hehe:

I *think* so! You really need to keep track of everything and then you can hand it over to your accountant. I don't use one, my MIL does all my taxes but since I started the biz I'm thinking about getting one. My MIL does use Turbo tax and she gets the business one too because she also has a business so I'll see how easy it is to use.

mbland · #4 (**permalink**) 10-16-2007, 10:30

You do have to pay for a business license. Here in my county they judge how much to will be on the amount you think you will bring in. Now that I know that I will be sure to keep my estimated profit low.

oh a business license and a tax id are not the same thing.

Lanie · #5 (**permalink**) 10-27-2007, 07:40

Quote:

Originally Posted by mbland

You do have to pay for a business license. Here in my county they judge how much to will be on the amount you think you will bring in. Now that I know that I will be sure to keep my estimated profit low.

oh a business license and a tax id are not the same thing.

Do yoiu have to get a business license and tax ID just to sell on your web site?

imadoll · #6 (**permalink**) 12-27-2007, 06:32

Quote:

Originally Posted by Lanie

Do yoiu have to get a business license and tax ID just to sell on your web site?

i want to know too!! but no one replied

and i couldnt keep on reading!!

Princess Babies Bowtique · #7 (**permalink**) 12-27-2007, 06:42

To be legal and to protect yourself, you should do both, be a business and have tax ID. Each state and even counties within a state may differ on fees, etc. On the plus side, you do get to deduct your expenditures. Selling on the internet, at least at this time for me in Michigan, I only have to collect tax for buyers in Michigan, not out-of-staters.

There is no one answer that will fit each case. Unfortunately, you have to research it and decide what fits your situation. State and local government websites often have handy links to help steer you in the right direction.

Princess Babies Bowtique · #8 (**permalink**) 12-27-2007, 06:43

it's complicated

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