# Do I need a business license?



## Jmanindie93 (Apr 12, 2011)

I am starting my own screen printing company out my my house, well, my parents house. I'm still somewhat young. And we also live out in the middle of nowhere. I am wondering if I should get a license and be legal or not. I want to advertise, which is why I feel it might be a good idea. And I also want to sell some of my own designs. And I am considering starting a website to sell on. What do you think?


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## tee09 (Oct 30, 2009)

If your planning to have a business, i would recommend being legal..some states do not require you to have a business license, just a resale tax id number.


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## Jmanindie93 (Apr 12, 2011)

I am in Oregon. I believe they require it here. I just can't comprehend how someone can tell me I can't sell shirts that I am making in the house I LIVE in.


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## tee09 (Oct 30, 2009)

Well ultimately its your decision.. to be legal or not...i would suggest you google and read you state requirements and go from there


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## kimura-mma (Jul 26, 2008)

Jmanindie93 said:


> I just can't comprehend how someone can tell me I can't sell shirts that I am making in the house I LIVE in.


So you can't comprehend liability, insurance, sales tax, income tax, etc?

The laws are in place for a reason. It's not that big a deal. Just Google "Starting a business in Oregon." You will find resources with all the forms you need to fill out. It's fairly easy and inexpensive to get started and it's well worth it in the long run.


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## Naptime (May 19, 2011)

Jmanindie93 said:


> I am in Oregon. I believe they require it here. I just can't comprehend how someone can tell me I can't sell shirts that I am making in the house I LIVE in.


i don't mean this as an insult.. but, this statement goes hand in hand with the one at the beginning where you said " I'm still somewhat young"

having a vendors license or a resale tx id number, has nothing to do with where you are operating your business. well, technically is does in many states, as it will determine the type of vendors license issued.

anyway, you need it because depending on your state or county, if you are selling something, you should be charging tax for it. and paying that tax into the government. for most states you only need to charge tax for items sold to customers in your state. but you need to find that out based on YOUR state's laws.


also, you will find that MANY of the t-shirt blank vendors will require this vendors license number before you can order at wholesale pricing.

there are some where you can order without, but they cost significantly more.


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## Rusty44 (Apr 28, 2008)

To obtain wholesale status with buying power for apparel, etc...they always request some type of tax id. Whether you're printing in your parents home or in a store front, if you are conducting a business you should be established as one. Don't be afraid of the process, it's quite simple. Good luck.


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## binki (Jul 16, 2006)

you don't need a biz license or anything else to start out if you do it as a hobby. once you start making some scratch you might want to look into a biz license. 

check with your county to see if you need anything unless you are within city limits, then check with them.

oregon is a pretty liberal state so you may not have to do much of anything with the government if you are small.

when i was in oregon i came across a lot of houses in the sticks that had businesses being run out of them. they all had signs in their front yards advertising.


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## Jmanindie93 (Apr 12, 2011)

So when I register my business, is that the only fee? And is that a business license? Also for taxes, can anyone explain how it works? Do I pay taxes on everything sold? Or only if I sell to someone in a state with sales tax.


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## binki (Jul 16, 2006)

no sales tax in oregon. you dont collect for other states.


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## bornover (Apr 10, 2008)

Go down to your City Hall and ask. Unless you live in Evilville USA they will be there to help you and guide you to exactly what you need to do where you live.

You many or may not need a business license, but you will need a business account at your bank and a Federal Tax ID.

You will need a Fictitious Name Statement if you want to name your business other than your real name. If you get a Fictitious Name Statement, you have to publish it in the paper and that costs a little bit of money.

The people at you City Hall or County Government can help you with the details on what they require.


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## Jmanindie93 (Apr 12, 2011)

Well, on oregon.gov, it redirects you to filinginoregon.com. I assume its a legitimate site since the .gov directs me there. I need to register the business, get a tax ID number, and since I am a sole proprietor I don't need anything having to do with employees or employers. I also probably need a resellers permit to get wholesale pricing. I do think I would have to pay income taxes though. Am I right?


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## splathead (Dec 4, 2005)

Jmanindie93 said:


> I do think I would have to pay income taxes though. Am I right?


You are correct. Income tax will be due based on profits.


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## Jmanindie93 (Apr 12, 2011)

And how am I supposed to know how much to pay?


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## splathead (Dec 4, 2005)

Jmanindie93 said:


> And how am I supposed to know how much to pay?


Have you run all these questions by your parents? They'll be able to answer most of them.


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## Jmanindie93 (Apr 12, 2011)

Well my dad said something about me not needing a license, because were out of city limits.


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