So, you've chosen your company name and the products or services you will offer?  Now it's time to start making plans for the actual business.  First, decide what type of business structure you want.  Will you be the sole owner or take on partners?  Would you benefit from forming a corporation?  Do you plan to sell directly to the public through shows or maybe you would rather do all of your business by mail or via the internet?  Or all of the above?  Once you figure out these basics, you'll want to research the more technical stuff like taxes, licensing, zoning, etc.

Back to Main
Next Topic

If you plan to operate your new business out of your home, you must clear it with your city's zoning office.  The first thing I did when preparing to start ClassiCraft was to call a friend who works for my township's zoning commission.  She gave me the necessary information concerning home-based business in the area.  Some require fees, applications, petitions, etc.  Many will not allow customer traffic and other potential annoyances in a residential area.  I found that in my case, none of these was necessary. Check your phone book for your local zoning/planning office.
  Back to Main
Next Topic

Next, I hit the internet for information on State and Federal Taxes. Since my company is a partnership, the rules and regulations differ than those for a sole-proprietorship. A good place to start is IRS-The Digital Daily. There you will find downloadable tax forms, instructions, and publications pertaining to self-employment and home-based business plus information on obtaining a federal Employer Identification Number (EIN). Also check to see if your state's department of taxation maintains a website, I believe most do. This will be a useful place to research licensing laws for your area and regulations for collecting and reporting state sales tax. In most states you will need a vendor's/reseller's license and tax I.D. number. Often when applying for these, the name you have chosen will be researched to make sure it is not already in use, but check to make sure you do not have to do this yourself. If you are unable to find what you need on the internet, your telephone directory is a good source of phone numbers for state tax departments and vendor's licensing.
  Back to Main
Next Topic

In order to operate a retail or wholesale business, most states and/or counties require a vendor's or reseller's license.  This also entitles you to purchase raw materials or goods to be resold under tax-exempt status.  The fee for licensing is generally reasonable, and is often discounted for yearly renewal.  Special rules apply to businesses that sell alcohol.  The collection and payment of state sales tax is associated with your vendor's license number.
  Back to Main
Next Topic