# Business plan ***need help***



## dillinger (Dec 28, 2005)

HI peeps,
well, i need help on this issue.i keep telling people that i own a business and in many cases i am not being taken seriously by people. the problem that i dont by law own a business. i am a fashion designer, and i want to start making my clothing soon,but i need a business license and a tax id number. and also i would like to get a credit card for my business.how do i go about doing this? i am right now searching on the net. but i would like to know how you guys go about doing this.
please oh please help me !


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## dillinger (Dec 28, 2005)

HI peeps,
well, i need help on this issue.i keep telling people that i own a business and in many cases i am not being taken seriously by people. the problem that i dont by law own a business. i am a fashion designer, and i want to start making my clothing soon,but i need a business license and a tax id number. and also i would like to get a credit card for my business.how do i go about doing this? i am right now searching on the net. but i would like to know how you guys go about doing this.
please oh please help me !


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## Comin'OutSwingin (Oct 28, 2005)

http://www.irs.gov/businesses/small/article/0,,id=98350,00.html

http://www.nass.org/sos/sosflags.html

http://www.t-shirtforums.com/showthread.php?t=2129&highlight=number

http://www.t-shirtforums.com/showthread.php?t=2660&highlight=state

Take a look at the links. 

Visit the threads. If you have any questions not answered, just let us know!


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## 'cia (Aug 18, 2006)

Eric,
The first thing I did was apply to the IRS for a federal tax ID # (FEIN) which is free. then I incorporated with my state ($275.00) and with the FEIN# and state ID# I applied for a state resale tax certificate. Next I was off to my local gov. for a business permit ($75.00). Along the way, I applied for an RN# (free) because my shirts are privately labeled.

Filed a copyright of my designs as a collection ($35.00).

I've registed my domain names (prices vary) and opened a business checking account that came with a debit/credit card. 

Start with the FEIN # because as far as the IRS is concerned, you're a business. You can incorporate (if that's your goal) at any time and in any state. The business of fashion starts in your head, but others can't see that. When you are proactive in launching your business, others will believe you're serious. Have many times have you heard someone say, "well I could do that." How many time have you met someone who did it? 

go for it.


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## dillinger (Dec 28, 2005)

but the thing is i dont know if i should get a tax id or anything becouse.i am a fashion designer and i plan to start outsourcing my designs to china and having them made there then shipped over to the states for retail stores.what do i need in that sort of situation?


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## CrazyTeeShirts (Oct 31, 2006)

You need the same things. If you are going to be making money and not being paid from an employer who withholds payroll taxes you are a business and you'll need to report your own earnings and pay the taxes. Also, you can't claim your expenses without bring a business.


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## 'cia (Aug 18, 2006)

Crazy Tees is correct. You have to have a FEIN to pay taxes on the profit from your sales. I won't get into the whole payroll tax craziness. Even though you plan to sell to the reseller market, you have to report these sales. Even before that, most vendors, manufacturers and suppliers won't let you talk to them about wholesale lot production, much less, provide you with price lists, catalogues or swatches without a tax ID #. Because without this #, you aren't a business in their eyes. Without a tax # you can't open a business checking account. I would be suprised if any buyer with a large retailer would order from you if you could not supply this #. 

In my other life, I'm a designer in a different industry. My design services, for which I invoice on an hourly basis, are a separate line item on the tax forms because as a service, there is no sales tax (in my state). Any merchandise that I sell is charged a sales tax and the difference(my profit) between my wholesale price(the price I paid the manufacturer) and the list price to my client (retail) is taxable on state and federal levels. 

Check out the www.sba.org to see if they have workshops or seminars in your area about starting a business. Many junior colleges, continuing education programs and libraries also have resources for the new business owner. Also check with your state and local governments.


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