| Starting a(n) CLOTHING HOME BUSINESS Business Licenses & Tax IDs |
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Hi, I'm HOW DO I START A HOME RETAIL BUSINESS
CLOTHING HOME BUSINESS
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| | | CLOTHING HOME BUSINESS
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You can choose to be a(n) CLOTHING HOME BUSINESS :
- Sole Proprietor,
- LLC,
- Corporation or
- Partnership.
After you decide and select your business entity, you need licensing.
Erie Business Tax Registration (
CLOTHING HOME BUSINESSBusiness License)
All businesses including home, online or mobile BUSINESS need a BUSINESS license because they are BUSINESSES.
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A(n) CLOTHING HOME BUSINESS business doing business under an assumed business name in
Erie County
i.e. you are a business that uses a DBA doing business as trade name to trade that is other than the full legal (first and last -- full name) name of a sole proprietor or a name other than the LLC or Corporation business name need a(n)
assumed business name certificate.
E.g. you venture into a(n)
CLOTHING HOME BUSINESS
business and you give it a trade name such as "Excellence
CLOTHING HOME BUSINESS
& Associates". You will need to register an assumed business name certificate.
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In
PA
CLOTHING HOME BUSINESS
you need a resale ID ( AKA seller's permit) if you selling touchable items.
(A.K.A state id, wholesale, resale,
reseller certificate, about $39 for most states). You will need it if you sell or want to buy wholesale any CLOTHING HOME BUSINESS related items, such as food, materials, or merchandise.
Seller's Permit
Note: All businesses need a federal tax ID number except sole proprietors that are not employers and are not independent contractors.
An independent contractor is a self employed business person that receives more than $600 per year from anyone of his or her clients.
IRS rule: The client must issue a 1099 form to the independent contractor and the independent contractor must have a federal tax ID.
However, even sole owners may obtain a federal ID and use it as a business tax ID instead of using their own social security number as a
business tax ID number.
However, all other licenses that apply to sole proprietors as discussed here are requited regardless of getting
a federal tax ID number.
In addition you will need a federal and a state EIN if you will hire employees.
I.e., a PA Federal Tax Id Number ($29)
and a(n) PA State Employer Tax Number
Instead of filing a fictitious business name DBA Filing (about $49 plus state and legal newspaper publication fees) in
Erie, Incorporate in PA or
form a(n) PA LLC .
Filing a DBA is not required if you will set up an LLC or form a Corporation.
If you will do business under your first and last legal name you will not need to get a fictitious business name.
Also note that even using your first and last name may not help you avoid filing a DBA if the name has a suffix such as "& sons" etc.
If you do form an Retail Trade llc or incorporate (about $49 plus state fees for most states) your CLOTHING HOME BUSINESS business instead of just filing a fictitious business name (dba),
that insurs that you don't have personal liability for debts and civile liabililty arising from your business dealings and you will not have to record the Erie business name.
In lieu of recording a Erie County trade company name (our filing service fee includes trade name registration and newspaper legal publication for 4 weeks) you can also form a corporation in
PA or form an PA LLC (starts @ $49 plus state fee for most states & includes bylaws for the corporation and Limited Liability operating agreement for the LLC that is required to open a business bank account). .
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Clothing
Clothing business generate $5bn with about an annual growth of 14.0%.
There are about 9,137 Businesses This resulted as more internet users have access, more money to spent and more confidence in online shoppoing.
Also, the more affordable it is to connect to the internet, the more accessible online clothing buying is.
It looks like it will grow more in the coming years, although an increasingly saturated market will result in relatively slower growth.
If you are starting a clothing sales business online from home, there are about 40 million Home Based Businesses.
The low cost of start up makes 40% of Home Based Business are started for under $6,000 and, in addition, 65% of Americans prefer to be self-employed.
Finally, home businesses account for $400 billion per year.
Licenses To buy wholesale clothing, you will need a wholesale ID also called a sellers permit. However, you will need to decide first what business structure you will be. You can be a sole proprietor, an LLC, a corporation, or partnership.
Then under that structure, you can register your sellers permit to be able to sell or buy wholesale clothing and sell retail as well.
The way that works is that when you buy clothing wholesale, you dont have to pay taxes.
However, if you sell retail, you will need to charge and collect the taxes to pay quarterly to the state.
The clothing tax is called sales tax.
Additionally, let us say that your business is called "Exquizit Boutique Treasures," which is a trade name, and it has to be registered with a dba trade name certificate.
In addition, you will need to obtain an occupational business license or a home occupation permit and in most cases also obtain a federal tax ID number.
If you will hire an clothing sales employees, you will also need a state employer ID.
You can obtain all these licenses, and tax id registrations here online on this site.
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| Erie
9/22/2011 6:15 AM
. | | HOW DO I START A HOME RETAIL BUSINESS
CLOTHING HOME BUSINESS
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