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Starting a(n) Business Licenses & Tax IDs

Hi, I'm Texana Tax 35150 Handmade Items

88564 Tax 35150 Texana NULL Online Selling Stuff Handmade Items 5 Sylacauga AL

, Texana.

Hi, I'm 73145 Handmade Items

Home business with an online Etsy store selling nationwide tumblers and gifts all handmade after ordering.

, .

Do I have to be a formal business in order to make handmade crafts and sell them online or from a store?

Yes, you need to become a business to sell handmade crafts.

Thus, you first, select your business structure: Sole Proprietor, Partnership, LLC or Corporation.

Then, a sellers permit is required to buy your craft materials wholesale and sell retail  if you sell handmade crafts merchandise wholesale or retail.  If you are an employer, i.e., if you hire anyone to help you with handmade craft making, you will need a federal employer Number and a State Employer Number.

Users of a trade name will need a fictitious business name filing.  For example, if you name your handmade craft business "Crafty but Arty," you will need to officially register that business name. Finally, you have the option or incorporating or forming an LLC for your handmade craft business.

Setting up your Handmade Items business

First, check the  Handmade Items Legal and Tax Business Structure

To set up and register your  Handmade Items business it does not matter whether your business is an online, home, store, concession stand or a mobile cart, you will have to first select a business type entity from these tax structures:

  Namely, from sole owner/proprietor, partnership, LLC or corporation.

It does not matter which Handmade Items  business entity you choose as far as a   General Business License   is concerned because all entities need a business license and that is because all businesses need, well, a business license.   (Note that that is not a specific license to your type of business it is a BUSINESS license) as well.

  Using a company  Handmade Items trade name subjects you to having to file a  DBA  . For instance, your name is Donald Tramp, and you do business as Best Items By Tramp, the Tramp name must be registered with a   DBA Doing Business As certificate   because it is not your full legal name (namely, Donald Tramp.

Also, note that whatever Handmade Items  item that you sell or lease and it is an item that can be touched (i.e., tangible such as equipment, jewelry, merchandise, electronics, prepared food) requires a sales  ID (  Sellers Permit  ) to either buy or sell the items or products wholesale from companies that sell in bulk and or sell them retail directly to consumers. The sellers permit is also called a sales tax ID, a state ID (there are 2 state IDs and the other one is called an state employer ID but you most likely need the sales tax ID from the state ).

  Getting people to work for your  Handmade Items business anytime within 30 days of starting your business subjects you having to get a  Federal EIN   and a   State EIN   (employer identification number).

  On the other hand, you will also need a federal tax ID if you are a partnership, an independent contractor, and a corporation or an   LLC  .

It is always a good idea obtain a federal tax ID as a sole proprietor and use it as a business tax ID in the place of a social security number.

However, you will still need other  Handmade Items filings business tax registrations, such as permits, a fictitious business name DBA, and tax IDs as described above. For example, if you want to be an LLC, you must obtain an LLC certificate and an LLC operating agreement as well as an EIN.

You need the EIN  to be the LLC ID in addition to being an Employer ID  if you hire workers.

  Finally, even   Handmade Items sole proprietor working from home or just online can set up a LLC or incorporate, in which case, they will not need to register the trade name with a DBA because the LLC or Corporation name will be the legal name of the business.

   A DBA stands for Doing Business As and it is also called a fictitious, assumed, trade firm or business certificate trade name.

✔ Biz Structure

You can choose to be a(n) Handmade Items :

Sole Proprietor,
LLC,
Corporation or
Partnership.
After you decide and select your business entity, you need licensing.

✔ Biz License

Oklahoma City Business Tax Registration ( Business License)
All businesses including home, online or mobile BUSINESS need a BUSINESS license because they are BUSINESSES.

✔ DBA Biz Name

A(n) Handmade Items business doing business under an assumed business name in Cleveland County i.e. you are a business that uses a DBA doing business as trade name to trade that is other than the full legal (first and last -- full name) name of a sole proprietor or a name other than the LLC or Corporation business name need a(n) assumed business name certificate. E.g. you venture into a(n) Handmade Items business and you give it a trade name such as "Excellence Handmade Items & Associates". You will need to register an assumed business name certificate.

✔ Seller Permit

In OK you need a resale ID ( AKA seller's permit) if you selling touchable items. (A.K.A state id, wholesale, resale, reseller certificate, about $39 for most states).
Seller's Permit

✔ Federal EIN

Note: All businesses need a federal tax ID number except sole proprietors that are not employers and are not independent contractors.
An independent contractor is a self employed business person that receives more than $600 per year from anyone of his or her clients.
IRS rule: The client must issue a 1099 form to the independent contractor and the independent contractor must have a federal tax ID. However, even sole owners may obtain a federal ID and use it as a business tax ID instead of using their own social security number as a business tax ID number.
However, all other licenses that apply to sole proprietors as discussed here are requited regardless of getting a federal tax ID number.

✔ State EIN

In addition you will need a federal and a state EIN if you will hire employees. I.e., a OK Federal Tax Id Number ($29) and a(n) OK State Employer Tax Number

✔ L L C

Instead of filing a fictitious business name DBA Filing (about $49 plus state and legal newspaper publication fees) in Oklahoma City, Incorporate in OK or form a(n) OK LLC .

Filing a DBA is not required if you will set up an LLC or form a Corporation. If you will do business under your first and last legal name you will not need to get a fictitious business name.
Also note that even using your first and last name may not help you avoid filing a DBA if the name has a suffix such as "& sons" etc.

✔ Incorporation

If you do form an Internet Selling llc or incorporate (about $49 plus state fees for most states) your Handmade Items business instead of just filing a fictitious business name (dba), that insurs that you don't have personal liability for debts and civile liabililty arising from your business dealings and you will not have to record the Oklahoma City business name. In lieu of recording a Cleveland County trade company name (our filing service fee includes trade name registration and newspaper legal publication for 4 weeks) you can also form a corporation in OK or form an OK LLC (starts @ $49 plus state fee for most states & includes bylaws for the corporation and Limited Liability operating agreement for the LLC that is required to open a business bank account). .

Free Seller's Permit