Business license how too

[MADMAX22]

Hey guys, figured I would look into getting a business license, I spend alot of money on this leather stuff (mainly initial cost) and would like to get some kind of tax help if I can and in the future near or maybe longer I would like to start selling some stuff. Not alot but when I can turn out something worth while it would be nice to make enough money on the side to support my habit (lmao). Thats the why now

How do I go about doing this. Anyone got some good trustworthy links that they can shoot my direction. Any experiences or lessons learned.

Much appreciated.

[tashabear]

Start here: http://www.dol.wa.gov/business/startbusiness.html

I just Googled "business license Washington state" (that's where your profile says you're from), similar to what I did when I got mine.

Edited November 8, 2008 by tashabear

[MADMAX22]

OK thats the first site I got as well. I dont want to sound lazy or anything, its just Ive grown increasingly leary of websites after a few times of having some issues with deals in the recent past.

If this is where you started and you didnt get rolled then it sounds like a good idea. Just wanna make sure Im on the right track.

Thanks for the input.

[Randy Cornelius]

The first thing I would suggest you do is contact the dept of Revenue in the state that you live. They are the ones that issue the sales tax number that you will need before you get anything else. Where I live I do not need a business licenses just the sales tax number. As long as the state gets their share they will not bother you. Then check with the county or city where you reside to see what kind of license requirements they have. If you are a home based business chances are you will not need a license but it is best to check first.

That sales tax license will allow you to buy wholesale from places like Weavers and Ohio Travel bag. Worth the hassel.

Randy

[rdb]

Randy is right. The key is the Sales Tax #. The unfortunate part is the record keeping. A good business man is anal to a fault. Figure the tax, add it on to the price, record it, send out the quarterlies to the state, and keep going.

Me on the other hand, I am always forgetting, putting off, having to figure what the State's share is, and paying the 5-10 dollar fines every quarter. And yet, I'm still a growing business...go figger.

Hardly any craftsperson has to worry too much about the Income tax, etc. Nobody pays themselves for a very long time. Most monies just get sunk back into the addiction...I mean business. So no taxes other than sales. My accountant is a small town one. He's used to all the rural people here. Bring in the cigar box full of receipts, and he'll figger it out.

If at some point you get so busy you have income, you'll know it's time to get more efficient.

CAVEAT: PLease don't imitate my slovenly business tactics. I've been this way my whole life, and I recommend not paying any attention to what I say on this sublect...lol

[MADMAX22]

The first thing I would suggest you do is contact the dept of Revenue in the state that you live. They are the ones that issue the sales tax number that you will need before you get anything else. Where I live I do not need a business licenses just the sales tax number. As long as the state gets their share they will not bother you. Then check with the county or city where you reside to see what kind of license requirements they have. If you are a home based business chances are you will not need a license but it is best to check first.

That sales tax license will allow you to buy wholesale from places like Weavers and Ohio Travel bag. Worth the hassel.

Randy

Thanks for the input. That would be the coolest/best part about it is being able to order from those guys. Ohio travel bag was nice enough to direct me to there retail site and siad if I find anything on there other site to just get them the numbers and they will make them available to me. Pretty nice if you ask me. Still with all the wholesale only places I think the tax# would be very beneficial.

RDB I think that is probably better then I handle things sometimes. Hence why this is just my hobby right now. If I had to live off of it Id probably be starving right now lol.

[tashabear]

OK thats the first site I got as well. I dont want to sound lazy or anything, its just Ive grown increasingly leary of websites after a few times of having some issues with deals in the recent past.

If this is where you started and you didnt get rolled then it sounds like a good idea. Just wanna make sure Im on the right track.

Thanks for the input.

Why would you be leery of your state's Department of Labor website? That's what it's there for. No deals, just you registering your business.

[MADMAX22]

Got it figured out, the website that I had originally gone to wasnt the state website but something else.

The girlfriend went on the state site and found the application form and all that good stuff. Looks like all I have to do is fill out the form for the business license, pay the fee and let it get processed and Im good to go. Atleast at first.

Once again thanks for all the help.

[Daggrim]

I would recommend becoming a Limited Liability Corporation (LLC). The main advantage of this is that it limits your potential liability in case you are sued. It limits your liability to the assets of your business, and whatever liability ins. you have for the business. It separates your business entity from your personal self, and so none of your personal assets (home, car,investments) can be considered in a lawsuit against your business. So, if Joe Green shoves his gun into a holster you made, but neglects to remove his trigger finger, he can only sue your business (mine's worth probably three thousand in equipment and supplies, and bank assets). That makes the crafters spouse very happy! It'd be hard on the marriage if the house was lost because of the husbands hobby...er...business.

Daggrim

[MADMAX22]

Good point Daggrim, thanks