So I registered and got my EIN/ Tax ID number, but I'm not sure that's sufficient to be considered a real legal small bussiness. Don't you have to have a business liscense? What's the difference between an EIN and a business liscense?
So I registered and got my EIN/ Tax ID number, but I'm not sure that's sufficient to be considered a real legal small bussiness. Don't you have to have a business liscense? What's the difference between an EIN and a business liscense?
Thanks!
Rebelesque,
EIN is and employment Identification Number and depending on your state you need one. In regards to the business license that also depends on your city. Even though our store is online only, we had to get a business license for our city. But we did not need a EIN due to the fact that it is just my husband and I running the business and we do not have any employees. Check with your city, they should let you know if you need the business license. If you are reselling then you might, depending on your state, need a resellers permit as well. Also if you are doing the business under a fictious name then you will a DBA as well.
Mystic
Last edited by Mystic; January 10th, 2007 at 12:00 AM.
Well our business is not run under our personal name.
Example: Joe Smith's Gardening, Joe is running it under his name.
Our website is weebeeshirts, so we needed a Doing Business As license for it.
Just depends on what you are calling your business.
Most businesses are run under a fictitious name (although many aren't). If it's not run under a personal name (e.g. Versace, Tommy Hilfiger, etc.) then it's a fictitious name.
We are in california as well, we needed a DBA, Tax Id, Resellers Permit and with our city we needed a business license as well. We are only online but that was required for our business.
So I registered and got my EIN/ Tax ID number, but I'm not sure that's sufficient to be considered a real legal small bussiness. Don't you have to have a business liscense? What's the difference between an EIN and a business liscense?
Thanks!
A business license is a permit and tax paid to your local government for the privilege to operate within their jurisdiction. An EIN is a tax identification number like your SSN for Federal tax reporting. Check with your city/county for business license requirements.
If you have a profit motive, even if you don't sell a single thing, you are a business, small or not.
You will also need to apply for a retail licensing with the state of California ...Retail License will allow you to buy from wholesalers , not all wholesalers require it , but most do .
Make sure you check all the tax requirements as well.
The best thing to do would be to find a small business development center and tell them what you are doing. They can then tell you what all you will need to have. That helped us out alot. We would have missed some things had we not contacted them.
Here is AZ, a Tax Resale License IS your business license... Even if you are doing sales online, if someone in your state purchases something, you are required to collect tax, and to pay that tax to the state. Whats even better - Is by doing things correctly and getting the licensing and filing all the correct paperwork - you not only.. are doing things LEGALLY, but you have all the benefits of running a business, writing off "business trips" "business meals" "business miles" "business supplies" "machinery (anything over $1000)" etc.. So at the end of the year.. quarter etc.. Even though you made money, there will show a significant amount that is cost to even RUN the business which will be taken off the amount of money you owe for taxes - the best idea is to talk to a small business accountant, they usually cost $100 dollars or so for the first meeting, and they will be able to tell you what to keep track of, and how and what to file for taxes etc, and also at the end of the year they will help you file your tax return along with your personal return - One thing to remember.. REAL businesses have accountants.. many people say "I dont need to spend money on that" .. Business owners that are in business to make money, WANT someone who can help keep track of that money and make sure its where it should be.
Just my opinion..
Also, as stated above, most people require a resale tax license in order to give out pricing lists and sell to you at wholesale, such as t-shirts etc..
What's REALLY a business 
