Business License
- Thread starter napiii
- Start date
chipmunkofdoom2
Well-Known Member
Good advice from RSMRyan, it's going to vary depending on your location.
Are you dead set on opening an online store? Do you have the coral stock and growth to support that? If it were me, I'd start slow with low volume and work my way up. If you only have a single frag tank and sell a few frags per month on Craigslist and on local reef forums, you're unlikely to attract much attention. Plus, by starting slow, you have low overhead and can grow organically, which will probably give you a better chance of long term success.
Once you start to move some serious volume, it would definitely be wise to make sure you're properly licensed and permitted. But, I think if you start out really small, you won't have any worries for a while.
Are you dead set on opening an online store? Do you have the coral stock and growth to support that? If it were me, I'd start slow with low volume and work my way up. If you only have a single frag tank and sell a few frags per month on Craigslist and on local reef forums, you're unlikely to attract much attention. Plus, by starting slow, you have low overhead and can grow organically, which will probably give you a better chance of long term success.
Once you start to move some serious volume, it would definitely be wise to make sure you're properly licensed and permitted. But, I think if you start out really small, you won't have any worries for a while.
Antics
Active Member
I know chipmunk is trying to help, but even if it's just a small amount of business, be very careful. Operating out of your garage might sound small time, but you can still get hit hard with fines and penalties if the state thinks you're trying to skirt your licensing. Taxes are not a joke, and they most certainly care even if you're only dealing in three figures.
Not trying to spook you, just saying I'm much rather personally be better safe than sorry.
I agree with the above though; do not enter this business lightly.
Not trying to spook you, just saying I'm much rather personally be better safe than sorry.
I agree with the above though; do not enter this business lightly.
Been there, done that. In New York I had to go downtown to register a name of a business. That cost me 65 bucks in NY. 20 years ago.
Absolutely positively do NOT go tax exempt until you are SURE this is going to be a full time business. Taxes is where you run into trouble. They watch you. My accountant freaked when I tried that.
That being said you can save big money with a business license. Be forewarned that many (most) wholesalers will not ship to a home address or PO box. Must be a street front business address.
If you can handle that by all means pay the taxes upfront and work it forward until you are ready to go full time with a storefront.
Again...been there, done that.
Best of luck! I myself found that it took much more time than I originally thought.
Absolutely positively do NOT go tax exempt until you are SURE this is going to be a full time business. Taxes is where you run into trouble. They watch you. My accountant freaked when I tried that.
That being said you can save big money with a business license. Be forewarned that many (most) wholesalers will not ship to a home address or PO box. Must be a street front business address.
If you can handle that by all means pay the taxes upfront and work it forward until you are ready to go full time with a storefront.
Again...been there, done that.
Best of luck! I myself found that it took much more time than I originally thought.