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Starting a(n) Business Licenses & Tax IDs

Hi, I'm Roasted Tea Home Based

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Hi, I'm IL Sellers Permit Home Based

FAQs - More...

Does a self knitting Home Based Business Need a IL Sellers Permit? What other permits and Tax IDs Does a self knitting Home Based Business Needs to Legally Start business operations?

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Does a Home Based Business Need a Sellers Permit? What other permits and Tax IDs Does a Home Based Business Needs to Legally Start business operations?

  A home based business needs a sellers permit if it sells or leases products or equipment that is taxable.   All products, food, equipment that anyone can touch is taxable.

  In addition, a home based business must decide on the business type of organization as a sole proprietor, LLC, partnership or corporation.

  Furthermore, a general business permit and a federal tax ID number is also required for any of the above business type organizations.

  Note that the majority of home or other businesses do not need a specific type of general business permit. They only need a general business permit.  Even if they need a specific business permit, as is the case of a learned professional or a tradesman, they still need a general business permit in addition to their professional or trade license.

  The only exception to a federal tax ID number is a sole proprietor, who can use a ss# instead of a Federal ID.

  However, even sole proprietors as well as all other business type organizations that are employers, independent contractors, LLCs, or corporation must obtain a federal tax ID number.

  Any type of business organization, including sole owners, must obtain a state employer tax ID if hiring employees.

  Finally, a sole owner (i.e., an one person business) can obtain and use a federal ID as a business tax ID instead of the social security number and, in addition, he or she can form an LLC or set up a corporation instead of organizing as a sole proprietor.



A New Home Based Business is started every 12 seconds

There are 39 million Home Based Businesses in the USA

71% of the Home Based Business succeed within 3 years versus

31% of regular business 45%  of Home Based Business are started for under $4,000

71% of Americans would prefer to be self-employed $428 billion per year is made by Home Based Business.

Most businesses do not need any surety bond insurance either but they can optionally purchase it and also purchase a general liability business insurance or home business insurance.

✔ Biz Structure

You can choose to be a(n) Home Based :

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

✔ Biz License

Jacksonville 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) Home Based business doing business under an assumed business name in Duval County/City Of Jacksonville 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) Home Based business and you give it a trade name such as "Excellence Home Based & Associates". You will need to register an assumed business name certificate.

✔ Seller Permit

In addition note that in FL you may also need a seller's permit if you sell merchandise that is taxable. (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 FL Federal Tax Id Number ($29) and a(n) FL 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 Jacksonville, Incorporate in FL or form a(n) FL LLC .

Filing a DBA is not required if you will set up an LLC or form a Corporation. There is a cicrcumstance that you may not need to register a trade name and that is when you use your full name as a business name if you use your full legal name as a trade 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 Retail Trade llc or incorporate (about $49 plus state fees for most states) your Home Based 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 Jacksonville business name. Instead of just registering your Duval County/City Of Jacksonville assumed business name (our fee includes assumed business name registration and legal newspaper publication) you can choose to setup a corporation in FL or form an FL 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