This section of the forum is for discussing the business and finance issues of the t-shirt industry. Which business structure to use (sole proprietor, LLC, S Corp, etc), how to handle billing, where to register your business and get the proper licensing, etc.
I'm just looking into starting to sell shirts in Virginia and I'm already getting confused with forms on getting a sellers permit.
I would like to set up a very small business selling printed shirts with designs for schools / friends who need them made. I was looking into buying from American Apparel but i saw that you need a 'State Resale Number.' I'm pretty sure i found the form that i need (ST-10) but i'm curious as to what i need to do. I'm having trouble navigating on the Virginia website so i'm hoping there's someone who can point me in the right direction. Will i need to fill out other forms along the way or can i start buying and selling after i get my resale number.
I guess this is why people go to college and major in business...
If anyone can point me in the right direction with what i need to do i would greatly appreciate it.
First off good luck. I lived in Northern Va for 40 years. The 2 businesses I had were over regulated and over taxed to the point of madness. You best bet these days with laws changing almost daily, is hire a professional business consultant. They will have all you need to know about starting up. After that a CPA. If you plan to survive in VA, you will need a good one. The Va dept. of taxation can be a bear to deal with if you dont have everything in order.
With all that said, if you can get your start up running, you should do fine. Depending on where you are located, go to the county building and research on a mid week day. If youre in Northern Va. you have to make th trek out to the middle of Fairfax, just off Ox Road. Its also where you go to pay your taxes in person.
I have no problems at all with the VA sales tax people, unless I forget to pay.
Here is what you need to do -
Apply for an account on that site. It's virtually instant. Then you can print out some ST-10's to mail to your suppliers showing you have a tax number.
Then charge the 5% tax on all slaes made in VA. If you ship to DC or other states, do not collect tax. Simple.
Then once a quarter, you go to their website and you show your total sales, not including the tax, then you show the amount of sales outside VA or to dealers who gave you their tax number - called Exempt Sales. Then you subtract the Exempt Sales from the Total Sales and pay 5% on the balance Taxable Sales.
They even give you a little discount for doing the paperwork.
Now if you need a college degree for Total Sales, minus Exempt Sales equals Taxable Sales there are a lot of folks who aren't aware of it.
You will also probably - note probably - need a business license. This varies from city to city or county to county. Check with your city or county hall and see what they tell you.
And keep records, you will need to come up with those total, exempt and taxable totals each quarter.
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Okay this information is great. I plan on going very small at first, just selling to friends and other people i run into. Were exactly is the virtual sign up? And also, what if i dont make any sales during a quarter? I assume i still have to send in a form showing that i didnt sell anything. I plan on going to the county hall area to read about what i need to do like Hammered said (I'm in the Northern Virginia area). Will i get in trouble if i buy a bunch of shirts and dont sell any? I'm just concerned of times when i dont sell anything. I'm assuming that going to the county i'll be able to find alot of the information i need.
Here is where you go for Sales Tax Registration. Don't worry about the Employment Commission, you have no employees - Virginia Department of Taxation
If you have no sales you just say Zero. If you don't file on time - by the 20th of the following month, you will get a fine of like $ 10 and a percent of the tax. No tax, no percent, just $ 10. 4 times a year, not a big deal. And if you forget, they will remind you - for $ 10.
I am in Newport News, it costs $ 30 for a business license to sell up to $ 50,000 a year. Or $ 50 for up to $ 100,000 a year. Over that is a percentage, but you won't need to worry about that for a year or two.
It will be a bit different where you are, but not a lot to it. They just want your money. Some places bring up zoning, like working from your house. Again, for what you are doing, not a big deal. But they may want another fee for that.
What you buy doesn't matter. You can wear them, give them away, burn them, they don't care. (Unless you start a fire.) All they are interested in is what you actually collect money for. Then they want their share.
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Im doing the same thing in VA i was wondering how i get a business license, and is that all i need a business licencse and the tax id # also should i do this after i save the money to buy all my t-shirts or before and should i trademark my logo and name and how should i do that