# Help a beginner please! LLC, taxes, confused!



## Andrew.Steven (Jan 5, 2010)

Hey everyone!

I'm going to launch a site where I sell shirts and some other various handicraft items. I will only be selling online and through paypal for right now. I am wondering what legal work I must do. I've read a lot on this forum, but am a little confused. I've read about becoming a LLC, but is this necessary since I am a very small start-up business? What is required for me to be legitimate? I do plan on buying bulk blank t-shirts from outside of the US aswell.

Thank you for any helpful comments!


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## kimura-mma (Jul 26, 2008)

Do a google search for "starting a business in (your state)." There should be some really good resources with a run down of what you need to get started. But generally, you need to register your business (as a DBA, LLC or Corp, for example), apply for a Tax ID # (this will help you set up accounts with wholesale blank suppliers), and apply for a resellers permit. If you are only selling online, you should not need to collect and report sales tax. But I'm not an accountant or attorney, so double check the online resources you find in your google search.

Some of this may seem like overkill, and there are people that will tell you some of it is unnecessary, but if you want to be legit, these are the steps that need to be taken.

Hope this helps and good luck with your business!


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## Andrew.Steven (Jan 5, 2010)

Thanks for that great info and put very simply! I will check google for info on NY

EDIT: I forgot to mention that I will be permanently be moving to California in about 6 months, so will registering my business in NY become a problem when I move? Will i have to re-register and re-pay fees etc...? 

I know it may be easier to wait, but I don't want to halt my business for such a long time. Any help is very appreciated!


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## debo971 (Jan 12, 2010)

i`m in gergia and what type of license do i need like a barber need barber license what i need starting my own t-shirt business...


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## aspaUSA.com (Jan 5, 2010)

In the beginning you can start as a sole proprietorship. If things work out you can incorporate or structure the business differently later. After being in business you can decide what structure works best based on the direction your business takes (employees, partners etc).

The only thing you should get is a Tax ID number from the government. And you can get one of these over the telephone in just a few minutes.

Don't get too caught up in the structure of the business at first-- find customers. You can't run a business without them.
*
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## kimura-mma (Jul 26, 2008)

Andrew.Steven said:


> I forgot to mention that I will be permanently be moving to California in about 6 months, so will registering my business in NY become a problem when I move? Will i have to re-register and re-pay fees etc...?


Then you may want to just register in Cali right from the beginning. I believe you can register in any state, regardless of where you live. But since you have a specific scenario here, it's best to contact an accountant and find out all the pros and cons.


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## kimura-mma (Jul 26, 2008)

debo971 said:


> i`m in gergia and what type of license do i need like a barber need barber license what i need starting my own t-shirt business...


Do a google search for "starting a business in Georgia." There should be some really good resources with a run down of what you need to get started. But generally, you need to register your business (as a DBA, LLC or Corp, for example), apply for a Tax ID # (this will help you set up accounts with wholesale blank suppliers), and apply for a resellers permit.


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## yourAlamo (Oct 28, 2007)

^^^ that's funny

--
There are many implications to having a business be a SP, S-Corp ,C-Corp or LLC.
You'll eventually want to talk to a tax accountant and attorney to make the right decision for you.

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That said, and of course this isn't legal advice. I agree with a few other people. Just start up. 
Keep good records, track your expenses and sales. 

If the thing gets rolling, then you'll definitely want to organize yourself officially.
California is pretty expensive for LLC stuff though, hence perhaps waiting to see if the venture gets cooking before you dump money into filings, lawyer talk, etc etc


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## Andrew.Steven (Jan 5, 2010)

thanks for all the advice everyone


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## Garage.Works (Sep 19, 2009)

good info, im looking into the LLC as we speak


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## GAW (Jan 11, 2010)

LLC is super easy to do and you can do it online!

LLC is $50, tax id is free, factitious name is like $8 and sellers permit.

I believe even if you sell online you still have to have sales tax but if you use pay pal it allows you to put in the percentage you need for it


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## TulsaCane (Jan 26, 2009)

Definitely go LLC


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## btaylor (Feb 16, 2010)

Andrew.Steven said:


> Thanks for that great info and put very simply! I will check google for info on NY
> 
> EDIT: I forgot to mention that I will be permanently be moving to California in about 6 months, so will registering my business in NY become a problem when I move? Will i have to re-register and re-pay fees etc...?
> 
> I know it may be easier to wait, but I don't want to halt my business for such a long time. Any help is very appreciated!


I just went through all the loops for NY State, if you still need advice PM me. I'm a nOOb on this forum but have experience now with NY state. I have a number of sites to help you along.


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## hal (Aug 10, 2007)

We went the LLC route. It gives you the insulation from like a corp. some liability. We also filed with the IRS immediately to be taxed like an S corp. By doing this, you can pay yourself a reasonable salary nad not have to pay self=employment taxes on the remainder of your income. If you want the S corp statis do it right away or the IRS will make you wait a year after you file fi you already have an existing LLC/


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## TimeWithoutTheE (Mar 31, 2007)

GAW said:


> LLC is super easy to do and you can do it online!
> 
> LLC is $50, tax id is free, factitious name is like $8 and sellers permit.
> 
> I believe even if you sell online you still have to have sales tax but if you use pay pal it allows you to put in the percentage you need for it


I wish it was that cheap in California!
California makes newly formed LLC's to pay an $800 fee within 4 months and another $100 for just submitting the paperwork!


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## GAW (Jan 11, 2010)

TimeWithoutTheE said:


> I wish it was that cheap in California!
> California makes newly formed LLC's to pay an $800 fee within 4 months and another $100 for just submitting the paperwork!


 
WOW.....man Cali must not want people starting companies.


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## LMCTees (Oct 16, 2009)

What is the difference between the S corp and other corps?


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## btaylor (Feb 16, 2010)

TimeWithoutTheE said:


> I wish it was that cheap in California!
> California makes newly formed LLC's to pay an $800 fee within 4 months and another $100 for just submitting the paperwork!


That's outrageous!


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## ermurph2 (Feb 23, 2010)

Definitely be careful with the sales tax thing. Even though you are a small online retailer, certain states have different rules when it comes to sales tax. Best advice is to contact a small business accountant in your state or call the SCC itself. 

I have a small online shop as well and because we have a "warehouse" in Virginia, we have to collect and submit sales tax on all sales to customers in the state of virginia, but not other states. 

Good luck, the business start-up phase is tons of fun, but be prepared for some bumps along the way! It's all a matter of the learning process though...


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## adicted2art (May 4, 2009)

so your saying an LLC is only $50.00 dollars thats it? the tax ID is completely free? and the sellers permit is only $8.00 ? please let me know if i misunderstood...cause i need help on this topic also.....


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## ermurph2 (Feb 23, 2010)

shawn - business start-up fees typically vary by state. i'm in va and i believe it was $100 to form the LLC and i think the ein was free, just a quick 10 minute phone call or you can even do it online. your best bet is to go to the state corporation commission (scc) website for your specific state. that site should have all of the info that you need. and don't be afraid to call the scc if you have questions, they're typically pretty helpful.

eric


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## adicted2art (May 4, 2009)

okay thanks,that sounds like a plan....great help...


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