What are my option as far as liability as a business owner? My employees will be in direct contact with shoppers. I will be paying self employmet taxes because at least in the beginning I will be operating as a sole owner. Is there anything I can do to look as if I am an established and big company? .

My business is a home business. Actually it is an online home business.           selling t shirts       im my basement         I will have several deliveries a day in my house. fed ex, ups         I know that there may be zoning restrictions in using my home as a business location.

The first step is to get a business permit registration license. Next, get an assumed business name because you will need it to register your trade name and the certificate can be used to open a business checking bank account and order business cards. . In addition, you may need a federal tax ID number if you are a partnership or a corporation or LLC. Then, if you sell any merchandise, you will need a reseller tax ID number. Also note that businesses need an occupational business permit regadless of the business legal structure, that is whether sole proprietor, limited liability company LLC or corporation. Also, if the business has more than one member, or you will file a corporation , you will need a federal tax ID number. Finally, Starting a business fist step is to select the tax legal structure. 1. Sole proprietor, 2. Partnership, and 3. Corporation or Limited Liability Company. All small, new, home based businesses, web based online as well as big businesses must select and register as on of these business tax structure entities. If you decide to be an employer that is have employees, you will need a federal ein ID and state ein tax numbers..

To limit any liability for debts or civil actions arising out of business transactions you may want to set up an LLC or form a corporation. An LLC will limit any liability for injuries incurred by clients while shopping in your business establishment. Most sole proprietors or sole owner LLC need to pay self employment taxes. To avoid paying excessive self employment taxes you may want to for an S corporation which can help you split your salary with dividents and save on taxes because dividents are not subject to self employment taxes. In general an LLC or corporation has more prestige and credibility as a business entity company than a sole owner or a general partnership. So if you want to be taken as a bigger company or more credible one you may want to set up an LLC or incorporate.

Because your business is a home business you may need a home occupation license and a business license. An online home business is subject to all legal permits requirements like any other business.                 Several deliveries a day in your house may not be allowed. Perhaps a couple per week may be more allowable.     If there may be zoning restrictions in using your home as a business location you may do not want to start a business at your home.

If your dba trade name includes your surname you may not have to file a doing business as dba name certicate unless it has additional words and suffixes that connote additional owners in the company. Any service company or sole proprietor that uses parts to provide the service must get a resale ID and charge taxes for the parts. If you would like to become a company with more prestige and have limited liability most business advisors recommend an LLC or setting up a corporation. What is the significance of a business permit as it pertains to a federal tax id number? Read the FAQs below for more... Frequently Asked Questions 1. Do I need to file any paperwork with my state? 2. Do I apply for an EIN by preparing Internal Revenue Service (IRS) Form SS-4 and filing it with the IRS?. 3. I am opening a business and plan to have employees. What license(s) do I need? 4. Is there a fee charged to obtain a business permit? 5. How long does it take to get a business license? 6. How can I file my business license tax reports? 7. How do I cancel my business license certificate if I go out of business? 8. What is the significance of a business permit as it pertains to a federal tax id number? 9. Why they call a business license a license? 10.Why partnerships need a business license and an assumed business name registration? Q:Do I need to file any paperwork with my state? A:You will need to obtain a state employer number if you are an employer, a general business registration, in most states, and a state sales tax ID if you sell tangible taxable items merchandise. Q:Do I apply for an EIN by preparing Internal Revenue Service (IRS) Form SS-4 and filing it with the IRS?. A:You may file one but we can also file it for you. Q:I am opening a business and plan to have employees. What license(s) do I need? A: social security tax Q:Is there a fee charged to obtain a business permit? A: by mail by contacting the Taxpayer Assistance Center on this website . Q:How long does it take to get a business license? A:Most applicants registering Online on this site will receive their account number in one to three days. Others will receive their account number within ten business days. If the registration is not filed electronically, it may take up to four weeks. Business permits cannot be obtained over the telephone. Q:How can I file my business license tax reports? A:You may file and pay online or by mail. Q:How do I cancel my business license certificate if I go out of business? A:It requires an application to cancel a business license however if you just stop paying the taxes and you can prove you went out of business you will not have to pay any more business taxes. Q:What is the significance of a business permit as it pertains to a federal tax id number? A:A business license is a business tax registration based on your gross annual income and perhaps your location. IRS acknowledges a Federal Tax ID number or an EIN number as a nine digit number used by businesses or corporations for any taxation related purposes. It thus becomes crucial for any entrepreneur to get a federal tax ID number before he decides to start a business. A tax identification number would be required whenever an owner files a return or makes a deposit. Q:Why they call a business license a license? A:They call it a license because the government permits you to do business based on some critiria they choose such an appropriate commercial location. if you are a partnership corporation or LLC or you want to use a federal id to open a bank account. Q:Why partnerships need a business license and an assumed business name registration? A:When you are a partnership, the partnership must obtain a business license, an assumed business name certificate and be identified by the federal tax id number.

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