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Starting a(n) Homemade Goods Business Licenses & Tax IDs

Hi, I'm Angel Montgomery Wholesale License 46221 Homemade Goods I sell homemade goods online

### **Business Basics: Choosing Your Legal Threads**

Just like selecting the perfect materials for your crafts, you need to choose the right business structure:

**Sole Proprietorship:** The simplest setup, ideal for a small, one-person operation. It's inexp..., Angel Montgomery.

Homemade Goods

✔ Biz Structure

You can choose to be a(n) Homemade Goods :

Sole Proprietor,
LLC,
Corporation or
Partnership.
After you decide and select your business entity, you need licensing.

✔ Biz License

Marshfield Business Tax Registration ( Homemade GoodsBusiness License)
All businesses including home, online or mobile BUSINESS need a BUSINESS license because they are BUSINESSES.

✔ DBA Biz Name

A(n) Homemade Goods business using a DBA Doing Business As Trade Name in Wood County , i.e., starting businesses using a company name other than the legal (given name) owner's name, need a(n) DBA Doing Business As Trade Name Registration. For example, you start a(n) Homemade Goods business and you call it "Ultra Homemade Goods Co". You will need to file a trade firm name for it.

✔ Seller Permit

Also, keep in mind that in WI Homemade Goods though, a business license and a DBA is necessary for most businesses but if your business sells any taxable items, you will need a sales tax ID number. (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 Homemade Goods related items, such as food, materials, or merchandise.
Seller's Permit

✔ Federal EIN

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.

✔ State EIN

If you are thinking of hiring help, you will need a state employer ID and an IRS number employer ID. I.e., a WI Federal Tax Id Number ($29) and a(n) WI State Employer Tax Number

✔ L L C

Instead of filing a fictitious business name DBA Filing (about $49 plus state and legal newspaper publication fees) in Marshfield, Incorporate in WI or form a(n) WI LLC .

If you will set up a corporation or form an LLC, you will not have to file a DBA (Doing Business As) unless your corproration or LLC name will be different that the busienss name you will trade under. Businesses that use the full legal name of the owner as a business name do not need to register an assumed business name. So, for example, your name is "John X Doe" and you use that as a business name.

✔ Incorporation

If you do form an Retail Trade llc or incorporate (about $49 plus state fees for most states) your Homemade Goods business instead of just filing a fictitious business name (dba), it will help you avoid legal and financial personal liability arising out of business transactions and you will not have to register the Marshfield business name. Instead of filing a Wood County fictitious business name (our service fee includes dba business name filing and legal paper publication) you can elect to incorporate in WI or form an WI LLC (starts @ $49 plus state fee for most states & includes bylaws and LLC operating agreement)..

Industry Numbers and Potential

The online homemade goods industry has been steadily growing, with the global handicrafts market expected to reach $1.1 trillion by 2027. From quirky crocheted creations to mouthwatering artisanal jams, consumers are increasingly seeking out unique, handmade products. With your passion for crafting and the convenience of online selling, you're poised to turn your hobby into a thriving business. Just remember, the key to success is to create products that stand out – because nobody wants a homemade goods store that's as generic as a mass-produced paperclip!

Business Structure and Registration

When starting your homemade goods business, you'll need to choose a business structure and register your business. Here are some options to consider:

Sole Proprietorship: This is the most straightforward business structure, but it doesn't offer personal liability protection.

Limited Liability Company (LLC): An LLC provides personal liability protection and is relatively simple to establish and maintain.

S Corporation: An S Corp offers personal liability protection and potential tax benefits, but it has more complex requirements than an LLC.

Registering your business name is also crucial to establish your brand and prevent others from using the same name. Consider trademarking your business name for extra protection.

Licenses and Permits

Depending on your location and the type of homemade goods you sell, you may need various licenses and permits to operate legally. These can include:

Business License: Most businesses require a general business license to operate.

Health Permit: If you're selling food products, you may need a health permit to ensure your kitchen meets safety standards.

Sales Tax Permit: If you're selling products online, you may need a sales tax permit to collect and remit sales tax.

Home Occupation Permit: If you're running your business from home, you may need a home occupation permit.

Make sure to research the specific requirements for your area to ensure compliance and avoid any potential fines or legal issues.

## Crafting Your Online Empire: Selling Homemade Goods Like a Pro

The world of online sales is booming, with e-commerce reaching over $5 trillion in global sales in 2023 [source needed]. Do you dream of turning your passion for creating homemade goods into a profitable online business? Before you set up your virtual shop and become a "Craftzilla," let's explore the essential licenses, registrations, and legalities to keep your online business flourishing.

### **Business Basics: Choosing Your Legal Threads**

Just like selecting the perfect materials for your crafts, you need to choose the right business structure:

**Sole Proprietorship:** The simplest setup, ideal for a small, one-person operation. It's inexpensive but offers less protection for your personal assets if something goes awry. (Think of it as a cozy Etsy shop - easy to manage, but limits your ability to grow and scale.)

**Limited Liability Company (LLC):** A popular choice for many online businesses. It separates your personal finances from business liabilities, offering peace of mind in case of product liability issues or customer disputes. (Think of it as a well-organized online marketplace storefront - provides structure and protects you from unexpected snags.)

**S Corporation:** More complex, with tax advantages for high-earning businesses. This might be an option for a much larger online operation with a dedicated team in the future, but for now, focus on getting started! (Think of it as a giant e-commerce retailer - great for expansive businesses, but overkill for a solo crafter.)

**Remember:** The best structure depends on your specific needs and risk tolerance. Consulting with a business advisor or accountant is always recommended.

### **Licensing Up: Your Permission to Virtually Sell**

Obtaining the proper licenses is key to operating legally:

**Business License:** Issued by your city or county, this allows you to operate your online business within their jurisdiction, even if you don't have a physical storefront. (Think of it as your online business permit - gotta have it to open those virtual doors!)

**Seller's Permit (if applicable):** This depends on your location. In many areas, if you sell taxable goods like crafts, you'll need a permit to collect sales tax from customers. (Think of it as your online sales tax license - gotta pay your share to support the digital marketplace!)

**Depending on the specific products you sell, additional permits or regulations might apply.** For example, some areas require permits for selling certain homemade food items or products containing animal materials. Research what's needed in your location.

**Remember:** Don't get tangled in the virtual weeds! Many resources are available online and from small business associations to help you navigate the legalities of selling homemade goods online.

### **Equipping Your Online Shop: Tools for Crafting Success**

Now that you're legally licensed, let's get your online store prepped for customer clicks!

* **E-commerce Platform:** Choose a user-friendly platform like Shopify or Etsy to create your online store. (Think of it as your virtual storefront - gotta have a place to showcase your amazing creations!)

* **High-Quality Photos:** Showcase your products with professional-looking or well-lit photos that capture their beauty and details. (Think of it as your online window display - gotta entice customers with captivating visuals!)

* **Clear Descriptions:** Provide detailed descriptions of your products, including materials, sizes, and any care instructions. (Think of it as your online instruction manual - gotta inform your customers exactly what they're buying!)

* **Packaging:** Invest in attractive and secure packaging to protect your products during shipping. (Think of it as your craft's personal gift box - gotta make a great first impression when it arrives!)

* **Marketing:** Consider social media marketing, online advertising, or collaborations with other crafters to get your name out there. (Think of it as your virtual megaphone - gotta spread the word about your fantastic crafts!)

**Remember:** The amount of capital you'll need depends on your products, inventory, and marketing efforts. Factor in not just the cost of creating your crafts, but also online platform fees, marketing costs, packaging materials, and any business registration fees.

With a well-defined plan, the right registrations, and a passion for creating beautiful crafts, you'll be well on your way to building a thriving online business and becoming a star in the world of handmade goods!

Capital and Equipment

To launch your homemade goods business, you'll need some initial capital and equipment. This can include:

Crafting materials and supplies: Invest in high-quality materials to create your unique products.

Packaging and labeling: Choose attractive, durable packaging and create eye-catching labels to showcase your brand.

Computer and internet connection: You'll need a reliable computer and internet connection to run your online store and manage your business.

Camera or smartphone: High-quality product photos are essential for online selling, so invest in a decent camera or use a smartphone with a good camera.

While the initial investment may seem intimidating, remember that you can start small and scale up as your business grows. Plus, as a crafty entrepreneur, you can probably DIY your way through some of the startup costs – just don't try to crochet your own computer!

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Indianapolis Angel Montgomery 6/8/2024 9:02 PM .

Wholesale License 46221 Homemade Goods

I sell homemade goods online

### **Business Basics: Choosing Your Legal Threads**

Just like selecting the perfect materials for your crafts, you need to choose the right business structure:

Angel MontgomeryIndianapolis, IN.

Wholesale License 46221

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