Discuss the wholesale blanks industry: Factory direct, custom labels. You can also use this forum to locate a wide variety of wholesale products including t-shirts, hoodies, mousepads, coffee mugs and other imprintable products.
I dont have a tax id number so i cant go directly to AA. But im in the beg. stage of my clothing line and hate spending 18 dollars to get shirts there has to be a better and cheaper way
If you are planning to start getting materials to start your business you should open an LLC. This will solve all of your problems. An LLC will take you about an hour to process the paperwork and in most states will cost you around $100. It will also allow you to get a tax ID number so you can get all of your wholesale prices. You can also get a company bank account with this ID number and if you buy your materials through your new business account it will all be tax deductable. If you are new to printing tshirts and are worried about any legal hassels you can remove some personal liabitity by opening an LLC aswell.
You will actually save on your taxes. If you register for an LLC you will have to file taxes but you can use flow through taxation, for example if your new business you buy a computer, press, shirts etc and you spent $6000 this year and you made $1000 off your sales. Which would put you in the negative $5000 you can actually flow that through to your regular taxes. which means not only will you not owe on your business taxes but, for example if you make $50,000 per year at your day job you can write off the 5k you lost and will only be taxed on $45,000 of your salary and probably receive a rebate
Also i am not sure how much it costs in PA you can find out quickly online but most states are around $100...cheaper ones at $50 and i havent seen any states more expensive than $200
You will actually save on your taxes. If you register for an LLC you will have to file taxes but you can use flow through taxation, for example if your new business you buy a computer, press, shirts etc and you spent $6000 this year and you made $1000 off your sales. Which would put you in the negative $5000 you can actually flow that through to your regular taxes. which means not only will you not owe on your business taxes but, for example if you make $50,000 per year at your day job you can write off the 5k you lost and will only be taxed on $45,000 of your salary and probably receive a rebate
You can do that as an LLC, S-Corp, C-Corp or just under you SSN#. The LLC gives you protection while the tax advantages of a partnership. Most distributors will want a resellers id#. For a tax ID you can always use your SSN#.
Im a little scaried about putting my social security number to AA to get an account. I dont wanna buy a couple cases and run into some tax issues or something in the long run.
One of my friends owns three laundrymats, and he told me he wasn't charged anything for the retail license. I don't remember if you have to get a separate business license versus retail, but in NJ you go to their website, and feel out the paperwork then fax it back to them.
For PA, do an online search for State Business License, and that should bring up the site. You can also look in the yellow pages.
We started as a sole Propriator, and do just fine. You can also call a few small businesses and ask for advice, not to mention your accountant. In many cases they'll start the paper work for you, then you can write that cost off. Yahooooo!
Can someone enlight me on the pricing I would recieve on AA shirts...like a wholesale pricing list
Unfortunately, the members here cannot post the wholesale prices of American Apparel because you need to have a business to access that price list. Whenever a wholesaler keeps their price list private from the public, we do not allow it to be posted here either. This is simply to protect the garment decorators from having the customers doing price checking on what the printer is charging them.
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Always do right; this will gratify some people and astonish the rest. ~~~Mark Twain BobbieLee
Very good answer Bobbylee, plus the guy really needs to open his own business legally, and it's not very hard to do. If he's not sure how, he can visit the local SCORE office which is free. He or she just needs to find out when they're open because they're all retired business persons.
I was just on the IRS website and was about to get an EIN number for an LLC but I was second guessing because i dont know if im doing the right thing. Should I get my EIN number before I actually register my business as a LLC or that doesnt matter? Wanted the EIn number so I can set up my AA account asap.. I got all this screens in my studio ready to be mass produced but I want to do things the right way.
I was just on the IRS website and was about to get an EIN number for an LLC but I was second guessing because i dont know if im doing the right thing. Should I get my EIN number before I actually register my business as a LLC or that doesnt matter? Wanted the EIn number so I can set up my AA account asap.. I got all this screens in my studio ready to be mass produced but I want to do things the right way.
You don't have to have an llc or an ein # for AA. You can use your social security number if you are an individual.
You HAVE to have a resellers license from your state. This license enables you to buy wholesale without paying sales tax and for collecting/remitting sales tax you get from sales. That is what you should be concentrating on.
P.S. I would not take the tax advice of anonymous forum members as to how best to legally set up your company. Talk to your accountant instead. In the meantime, get a resellers license in your individual name so you can start buying shirts. It can be transferred to whatever company name you decide on later.