Every state and city require that you register any new business with them
Some locales require you to obtain a permit or license for your activity.
In order to collect and pay sales tax on all sales, you will need a tax license and number from the state . Presenting this number to any wholesalers you work with, saves you from paying sales tax on the goods you purchase.
Collecting sales tax means you need to charge sales tax on all sales made to buyers who live in the same state you do. You do not have to, at this point in time, charge and collect sales tax on sales made to out-of-state or out-of-country buyers.
Of course, when you collect sales tax from a customer, you also have to report and forward that tax to your state government. This procedure varies from state to state, so you’ll have to check with your local authorities.
When you’re running a legitimate eBay business, you have to report the income you generate from your eBay sales.
Most everything you spend money on that’s related to your business can be deducted as an expense. Internet service, your computer, automobile trips to the bank or office supply store, even a fair share of your household utilities may all be legitimate deductions and the more deductions you have, the lower your reportable income for tax purposes.
In this point I would hire a professional to handle your business accounting and taxes. Good accountant will find things to deduct that you never thought of which will more than pay accountant fee.
One thing is sure, when it comes to taxes you should seek a certified public accountant (CPA) or enrolled agent (EA).
If you decide to have employees in your eBay business, you’ll need to withhold income tax from their paychecks, and then report and pay this tax to the state and Federal government.
Finally, Lets Open New Bank Account
Running a business, requires new bank account. Good thing is to divide personal from business account(money). Having a bank account in your business name should also minimize any potential confusion when it comes to depositing or cashing checks made out to your business name.
The best is to set up a merchant account. To set up, you’ll need a EIN number. If you’re running a partnership, the partnership’s bank account should be separate from all the partners, and should require more than one name on the checks.
If you’re going the self-employed route, you’ll need to obtain health and disability insurance for yourself and your family. Good news is that eBay offers a health insurance plan only to PowerSellers.
No worries, there are a lot health care providers that offer plans for small businesses and the self-employed.
You should also consider obtaining insurance on your business itself. This type of business insurance is designed to protect you from specific business liabilities, such as creditors and potential lawsuits. Check with your insurance agent to shape a policy that works for you.
Confused yet? Then use the following checklist to help you pull everything together for your new eBay business:
You don’t need to burn out yourself dealing with all these papers and legal stuff.
Bottom line is, you’ll need professional help for all paperwork and getting business off the ground. While you planning everything is the best thing to consider it right away and start looking forward it.
When it comes to setting up and managing a small business. Hiring professional help is great way to get things done and save time.
Yes, you’ll have to pay, but for most of us it’s a necessity. More specifically you’ll need an accountant and an attorney. The accountant is necessary to keep track of your taxes and finances on an ongoing basis.
The attorney is necessary to help you get your business registered and legal.
In order getting maximum attention to your business, let the professionals handle all this busy work.
All Professional fees are tax deductible.