I am starting my own online business. It is small, it will be run out of my house (in Los Angeles, CA), I will be the only person involved and I will be selling art pieces that I create myself. I have researched many websites including the tax franchise board, the IRS, the Small Business Association, but I find them all so overwhelming and confusing. Do I have to charge sales tax? Do I need a Federal Tax ID? Do I need a State Tax ID? Do I need a California Seller's Permit? I can't seem to find a place that narrows down the start-up requirements. Thanks!
2006-08-25 11:53:22 · 5 answers · asked by senorhein 1 in Business & Finance ➔ Small Business
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2006-08-25 15:17:55 · answer #1 · answered by netnew 7 · 0⤊ 0⤋
You need to charge sales tax to anyone you sell to in CA, so that means tthat you need a state sales tax and seller's permit.
You do not need a federal TAX ID or a state tax id - you can use your social security number and just complete the appropriate schedules.
You should go and register your business as a DBA (doing business as) at the county clerk's office. You give them money, a name, you can be your name DBA yournameart.
If you sell to a dealer > $600 / year, you need to send them a 1099 showing gross money paid to them - you do not need to do this for any customer.
Or,
you can just sell on ebay, not file anything with anybody and not even call it a business - it's technically tax fraud, but there are thoussands of ebay businesses that do it all the time - the best bet, though, is to not sell to anyone in CA.
2006-08-25 12:59:55 · answer #2 · answered by Anonymous · 0⤊ 0⤋
The best routes to take are to research the process of starting a business as well as the industry you're interested in.
I recommend checking out the SBA, Entrepreneur, The Start Up Journal & Nolo. All 4 are great informational resources for the new/small business owner. I posted links for you in the source box.
Research, research, research – this cannot be stressed enough. Read as much as you can. Here are some book titles that are relevant:
* Starting an Online Business For Dummies, 4th Edition by Greg Holden
* How to Start and Maintain A Successful Online Business by Kelly Thornton
* The Complete E-Commerce Book: Design, Build, and Maintain a Successful Web-Based Business by Janice Reynolds
* Small Business Start-up Kit for California by Peri Pakroo, Barbara Kate Repa
* How to Start a Business in California by Entrepreneur Press
There are plenty of free informational resources out there. Check the source box for links to articles.
Hope that helps! I wish you much success & happiness in all your ventures!
2006-08-29 07:21:03 · answer #3 · answered by TM Express™ 7 · 0⤊ 0⤋
If you start small by targeting the online auction sites you do not need to file. However, as an artist I would want to sorta of "brand" myself and thus I would probably get a business license, which you can get from your local business licensing office that you find on your secretary of state website.
I would try to target online art relates websites like etsy.com to start.
Hope this helps!
2006-08-25 15:14:24 · answer #4 · answered by No More Cubes 2 · 0⤊ 0⤋