I live in missouri. I am planing on starting a small ebay. do i need a Business Licence or Tax ID or anything? Also if it all goes well I am going to open a website. Or how much do I need to profit before i need to get one? Would I need anything for that. Thanx for your time. I just dont want to get the IRS on my butt.
2006-09-21 12:38:29 · 9 answers · asked by zombielion1 1 in Business & Finance ➔ Other - Business & Finance
How do I get a tax id and what is a CPA office, wnad where would it be located? like city hall or the court house?
2006-09-21 12:42:19 · update #1
You must always report earned income to the IRS, no matter how little. I believe that money earned from a business venture under $600.00 can be claimed on a persons personal taxes, but I'm not certain of that. If you really want to start a business, the best thing to do is buy a book on starting a business. There are many specific questions you will need to ask and answer. Do you want to be a sole proprietor, or a corporation? Do you intend to resell? Are you going to manufacture? Will you hire employees? Are you selling locally, out of state? Internationally?
The people here are mistaken... only certain businesses need to be licensed, but all businesses need to be REGISTERED in the County they will be doing business. This is generally referred to as a business certificate. When you register your business, you will also be issued a federal tax identification number. If you are going to buy or resell goods and services, you will probably need to get a reseller number from your State department of taxation. This is *usually* the same number as your federal tax I.D. number (but not always.)
The best thing to do is speak to an CPA (certified public accountant) or a lawyer who works with businesses (most do.) They should be able to help you with all the initial setup. You can generally find these people in the yellow pages. You should be able to find some help here as well http://www.sba.gov/mo/stlouis/index.html
2006-09-21 12:51:09 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Any income producing business is required to hold business licenses and Tax IDs. The licenses you need are through your county while your sales tax is through your state and federal taxes through the IRS. Each agency will be more than happy to tell you what you need to do to set up your business in your county/state and will help you to do so. I would suggest that you take an accounting class at a local community college and your business can pay for it. It's deductible. Other deductions include your ebay and paypal fees, your internet provider, some of your rent and depreciation on your existing computer equipment, business cards, mileage to the post office, and more. So you can see that you will end up with more tax credits which will reduce your amount of tax overall. You can hire an accountant and tax preparer... again, business expenses for professional services are tax deductible. There's no reason not to get yourself licensed and legal. It's in your best interest. Two organizations that can help you are the SBA and SCORE. I will attach links below. Now, don't just blow off the idea thinking that it's too much work or you cannot afford the licenses. You probably won't pay more than $80 out of your pocket which are deductible from your 2006 taxes. Get on it before the end of the year!!! Don't wait for your ship to come in ... Swim out to meet it. Your local library is also an amazing and free resource for business start up assistance.
2006-09-21 15:22:41 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You always need a business license when you open or begin operating your own business - even if it's through the internet - at least, this is the right thing to do.
You do need to obtain a Tax ID number should you decide not to use your SSN in declaring your internet income, also if you're doing business as anything other than as an individual/sole proprietor.
A sole proprietor can still obtain a TIN for privacy reasons - in case your vendors/customers will request you for a W-9 and you don't want them to know your personal SSN.
Simply put, obtaining a business license is always a must when you are running any type of business - big or small.
2006-09-21 12:47:25 · answer #3 · answered by calofficer 2 · 0⤊ 0⤋
I would get both, Tax ID for the simple fact of the IRS, Second get the license for certification purposes to show that your legit and not a rip off. I know usually with eBay there is no in store products but if you have products that will be stored in a building that you will work out of and sell stuff for people Insurance Might also be good if some one tries to steal anything.
Check with your state and local Business Offices to see what you should really have to get started. However don’t let the idiots that might come out and try to deter you from it because you will encounter them.
Also look up DBA application for Licensing. …
Best of luck to you!!!
2006-09-21 12:55:04 · answer #4 · answered by 4mika 3 · 0⤊ 0⤋
Good questions! You will need a business license and tax i.d. number. I recommend you meet with Small Business Association (SBA in blue pages of phone book) and seek their advice before you do anything. They are retired entepreneurs who are very helpful and advise you based on their many years of successful experience in business. Their services are free. Best wishes.
2006-09-21 12:50:01 · answer #5 · answered by Rhonda 7 · 0⤊ 0⤋
Definitely get a tax I.D. number to keep the IRS off you butt.
2006-09-21 12:40:23 · answer #6 · answered by WILLIAM W 2 · 0⤊ 0⤋
You need a business license u sholud be able to get that at your city hall my dad got his there but we live in dallas so i dont know if it is different...
2006-09-21 12:54:52 · answer #7 · answered by brenpren07 3 · 0⤊ 0⤋
go to a CPA in town and get their advice..they are professionals!
2006-09-21 12:40:40 · answer #8 · answered by k-mac 3 · 0⤊ 0⤋
you should get a license. its better to be safe than sorry.
2006-09-21 13:02:27 · answer #9 · answered by Holly H 2 · 0⤊ 0⤋