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Discussion Starter #1 (Edited)
Hey Guys,

So I have everything ready to go in terms of logo, design, screen printer, where to get my shirts. I'm just not sure where to go now in terms of registering my company and what not. When I answer the questions on the IRS website, it doesn't seem like I need an EIN number. And if I'm planning to sell primarily online, do I need a reseller's permit?? And if so, for which state??

Any and all information will be much grateful!! Thanks!

Is it easier to just create a EIN as a sole proprietor and file all taxes under my name because I'm starting off small? Or might as well go with the single LLC and not have to worry about changing it later??
 

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:welcome:

In most cases you will need a resellers permit/license to buy wholesale, in most states you will need to collect sales tax for the items sold within your state even on-line.

You should check your state government's web site it should have all the info you need to be legit in your state.

Hope this helps.
 

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Registering your company is a question you can answer yourself. But all your questions seemed kinda intertwined.

When I answer the questions on the IRS website, it doesn't seem like I need an EIN number.
If your going the sole proprietor route, ( As mentioned below ), Then I do believe you can at least establish a business bank account with only your DBA.

If you do not plan on building business credit, then I guess you do not need an EIN because you won't get a DUNS # without one.


And if I'm planning to sell primarily online, do I need a reseller's permit?? And if so, for which state??
Talk to your state's Department of Revenue.

In my state I only have to charge sales tax, on or off line to customers whom live in my state.

You normally have a fee or bond calculated from how much you expect to sell in your state, and once that is paid you will receive your reseller's permit/sales tax number/most wholesalers won't mess with you without one.

Example:
https://www.americanapparel.net/wholesaleresources/pricelistaccess.html

Note, the two things you are questioning are both required.


Is it easier to just create a EIN as a sole proprietor and file all taxes under my name because I'm starting off small? Or might as well go with the single LLC and not have to worry about changing it later??
Perhaps you should talk with a Lawyer or Accountant to understand the IRS's pass through treatment of LLC's as opposed to the taxation of a sole proprietor.
 

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Im kind of in the same boat.... have all the designs, the logo etc. and i too will start off mainly selling from the internet but dont really know much of the legal side, and found it really hard to get straight forward info. I do know most any wholeseller will require a sellers permit regardless the state. and in order to get a business account i needed a DBA... as for the EIN Im pretty sure i needed it to get my sellers permit, i live in CA dont know if that has anything to do with it. now just confused on weather i need any other licences such as a business licence.
 

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:welcome:

In most cases you will need a resellers permit/license to buy wholesale, in most states you will need to collect sales tax for the items sold within your state even on-line.

You should check your state government's web site it should have all the info you need to be legit in your state.

Hope this helps.
Reseller's Permit is Needed. Collecting Sales Tax is needed. Whether you sign up as Sole Proprietor or LLC is your choice. I would consult a Certified Public Accountant. They should be able to give you straight information.
 

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If you are going to be a sole proprietor...you do not need EIN...just use your SSAN and fill out a schedule C on the tax return...You will have to pay the self employment tax...like an employer and employee contribution. You will need a sale permit from your state if you have sale tax..some states you do not have tax on garments but not sure which...get a business lic from the city or county...file a DBA if you are using a name other than your own. You can then open a bank account with the DBA name...your sales permit and DBA should be under the same name...Be care of screen printing in residential areas because of the disposal problem and also if you are in a residential zoned area you may have to get a variance to do business there. Most cities will not let you do business from a home IF you have customers coming and going...plus delivery trucks...etc
 
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