Do I Really Need A Business License And Tax ID?

so make Water Walker sure you conduct your busi as suchIn the ey of the law your ebusi is suscept to the same law and regul that govern the corner mom and pop..


I'v gotten quit a few email recent from ebusi owner who seem to think that just becaus their busi is conduct onlin or from the comfort of home that the rule and regul that govern brick and mortar busi do not appli to them.

Th ebusi question I get most often do not involv build websit or conduct ecommerce.

such asThei ar more what I call the "Do I Realli Have To" line of questions.:

"Do I realli have to get a busi license?"

"Do I realli have to get a tax ID number?"

"Do I realli have to pai tax on incom from my website?"

yes,Yes. and yes.

Do I realli have to get a busi license? Thi is on requir that mani ebusi entrepreneur think thei can skirt becaus thei don't have a brick and mortar establishment.

Sorri Charlie. Operat an ebusi out of your offic or out of your home doe not get you off the hook when it come to licensing.

Depend on your locat you mai need a citi and counti license.

such licens ar rel easi to obtain and ar not expensive. For local licens requirements,Luckily. contact your citi or counti govern offices.

Hom busi ar also subject to zone law that regul how properti can be us and mai restrict variou activities. You should check local zone requir and properti covenants.

Y can find thi inform at the court hous or by call your local licens department.

the best reason to get a busi licens is it allow you to set up a busi bank account us what' call a DBA Leg aside..

"DBA " stand for "do busi as."

but you might us "Jone Internet Services" as your busi name. Have a busi licens will enabl you to set up a busi account and get check print with your busi name,A DBA is anoth name that you us in the oper of your busi instead of your person name. For exampl your name might be Joe Jones. give you that all import air of profession that mani ebusi lack.

or nexus,Do I realli have to get a tax ID number? Online compani with a physic presence. in a state ar requir to collect and report tax on sale of taxabl good made to custom live within that same state.

if your onlin busi is base in California,For example. you must collect and report sale tax deriv from fellow Californian make purchas on your site.

For thi reason you will be requir to have a tax ID number if you'r sell taxabl good most servic ar not tax .

Get a tax ID number is usual a simpl process of fill out a form and pai a nomin fee. You will file quarterli report and remit ani sale tax that is due.

On word of warning: mani entrepreneur have gotten themselv into deep troubl becaus thei saw fit to spend the sale tax thei had collect instead of send it to Uncle Sam. Thi can mean death to your busi and jail time for you. Mani time thi mistak is innoc made when a busi owner comingl fund collect as sale tax with their normal busi check account.

Open a separ bank account and deposit sale tax moni into the account and do not touch it until the time come to send the monei in with the quarterli report.

Do I realli have to pai tax on incom from my website? We'v talk about thi befor and the answer is still the same: Just becaus your incom is deriv from an ebusi doe not mean that the incom is not taxable.

It' not manna from Heaven. It' incom so report it.

Th point to rememb is this: the "e" on the front of "e-business" doe not stand for "exempt."