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Making Your Internet Business Legal - A Simple Guide
I first started thinking about beginning an online business, I didn't think about the legalities. I knew I wanted to make some extra money. Lots of money! Sound familiar? So, I began doing some research. One day I ran across the headline of an article that I will never forget. It read, "Your Business; Get Legal Or Get Cheated"! As if that were not scary enough, there was more to come. As I began to skim the page, I was horrified to see the words, "Tax ID number." Tax ID number? I don't know anything about that! At that moment, I thought the dream of owning my own business was just that, a dream. I began to read more of the article and it actually sounded pretty simple. I was surprised to find how simple it really was. There are two things you must have in order to make your business legal. |
The first thing you need to do is file your business name with your state. This is referred to as a Doing Business As (DBA) or Fictitious Name depending on your state of residence. It is as simple as going down to your local County Office building to register your business name. You will be charged a fee. I payed $19 in my county which is in North Carolina. You will need to find out the cost of the fees in your county. You can also file a corporation with your state. All states have a website that gives information about this. Most of the time you can even file online. A corporation will give you more protection for your business but is more expensive.
The second thing you need to do is obtain a Tax ID number. Most states require you to have one. In my state it is called a Sales Tax and Use Certificate. In other states it could be called a Seller's Permit. What is the purpose of this number? It allows you to collect sales tax on items you sale within your own state. You will use this to file and pay taxes on the items that you sell. You can obtain a Tax ID number by visiting your local State Tax office. You should be able to complete the process and have your number within minutes for a minimal fee. Since the process was still a little scary for me, I went to see my accountant and he filed the papers for a fee of $25. I thought it was worth every penny not fill out the forms myself. If you buy products from a wholesaler, you will need to give them a copy of your Sales and Use Tax Certificate or Seller's Permit. This proves to the IRS that they are not required to charge you tax on products that they sell to you for wholesale prices. |
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Mississippi state directory helps & guides the visitors find state information and resource on business, economy, finance, investment, education & real estate in MS.
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