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. If not now soon I will have others involved as owners of the company. 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.   My business is located outside the city limits.       no   no I will buy and store merchandise in my home with the purpose of selling it. in a closet for now then we have an extra room I can use for storage but first need to clean it up     There will be more than 5 customers per day visiting my house for business purposes. not sure at this time   not sure I will have employees perhaps non relatives will be working in my home business. 2 people help me at this time   no

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. Though a sole proprietorship does not need a federal tax ID number a partnership does. A partnership also needs a fictitious business name to operate as well as a partnership agreement. 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.   If your business is located outside the city limits you may not need a city business permit to operate your business.       Storing merchandise in your home may not be permited but in your garage may be ok.   If there will be more than 5 customers per day visiting your house for business purposes they may not approve a home occupation business permit.   If you have employees perhaps non relatives will be working in your home business may not be allowed. Some cities allow only relative to be employees of a home business.

i'm just starting and am not sure just what I need or what I need to do Since you have partners you will need to obtain an IRS ID number and a fictitious assumed business name. Prepared food is taxable and you will need to obtain a sellers permit to legally sell your prepared food products. 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. Can I use the same business license if I change from sole proprietor to LLC or Corporation or even partnership? 2. Do businesses have to obtain the taxpayer identification number (TIN) from vendors and keep it somewhere on file? 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. Can I start my business before obtaining a business permit? 6. If I purchased an existing business, can I use the previous owner’s business license? 7. How do I know how much business tax I will have to pay per year? 8. What is the significance of a business permit as it pertains to a federal tax id number? 9. Will I also get a copy of my business permit in my email? 10.Why partnerships need a business license and an assumed business name registration? Q:Can I use the same business license if I change from sole proprietor to LLC or Corporation or even partnership? A:You may be able to use it but most likely you will need a new business license if you change business structure. Q:Do businesses have to obtain the taxpayer identification number (TIN) from vendors and keep it somewhere on file? A:Yes, you will need a form w-9 which is a Request for Taxpayer Identification Number. 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:Can I start my business before obtaining a business permit? A:No. You must register for a business license before starting your own business even if it is an online home based web based business. Q:If I purchased an existing business, can I use the previous owner’s business license? A:No, you must register for a new business license under your own name or the name of the corporation, partnership or LLC. Q:How do I know how much business tax I will have to pay per year? A:You should use these forms along with the tax tables found in the publication to determine how much income tax should be withheld from each employee’s paycheck. However, the government will mail you a bill each year for your business license business tax you owe. 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:Will I also get a copy of my business permit in my email? A:You will get a copy by email so you can print it out. It is the official IRS receipt. 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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