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So our business has been running for about 8 months now and we have decided that we are making enough money and we want to continue. At first, we were warry of legitamizing because it might have been a waste of time and money if we decided to end our business. We are a custom screen printer and want to know how we would go about legitamizing ourselves into a real businees.
 

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have you registered your business name!! That was the very first thing i did when i decided to start my women's t-shirt line. then i started a website and facebook page to start a buzz!!! just an idea:)
 

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Depending on the state you live in you'll need to register your business with the state, get a retail merchant license if your going to have a store front, register with your state department of revenue and obtain tax ID number which lets you purchase wholesale (non-taxable) and also collect sales tax for your state on your finished goods.

To get the correct info you really need to check your state's web site, also a good idea to check with your local (city/county) government because some of them have more requirements then just the ones the state has.

Hope this helps.
 

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Like everyone else has said - Register your name (there are plenty of websites that will take you through the steps - usually the state site); get a Tax ID number....once these are done, build your business how you wish - but definitely take care of these tidbits first. You will need them! There are also some books out there for new business owners and how to guide - Congrats & best of luck!
 

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I believe you have to have a registered business name to set up a business checking account in your specific business name ... for example.
 

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What exactly will registering my business name do for me?
Registering will establish your business as an entity, which will grant you protection under the law. The specifics of the protection is based on which legal structure you choose (ie DBA, LLC or Corp). Once you register, you will be able to open a bank account, apply for a federal tax ID number and any other state permits or licenses you need to legally operate your business. An advantage of the tax ID number and state permits is that you can open wholesale accounts as a tax exempt business.
 

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how have you been handling sales tax for the last 8 months?
Here are the steps here in AZ... your state may vary.

1. File incorporation papers with state corporation commission. Register trade name.
2. Get EIN # from IRS (Federal Tax ID)
3. Get Transaction Privelege Tax (TPT#) ID # from state department of revenue (AZDOR.GOV)
4. Open bank account in business name. (requires all the above to be completed)
5. Register with your county/city to get a local business license... not always required.
 

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If you are a sole owner you do not need an EIN ....you can just use your SSAN....I have done that for 10 years..but all else Glenn says is dead on
 

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yep, here in AZ you get a "trade name" (dba) and use your personal ss# for $10!

Even so, I'd always want to try to insulate personal assets from the business liabilities with the right corporation setup.
 
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