Forums: Discussions for entrepreneurs and small business.

Kimberly,

Sole proprietors aren`t required to have an EIN, but I always advise my clients to get one for these reasons:

1. It makes it easier to keep your business and personal transactions separate.

2. It shows the IRS that you`re serious about being in business.

3. It serves as a layer of identity protection for you since you won`t have to be giving out your social security number to lots of folks.

As far as a "business license" goes, that depends on your business and the requirements in the State of NY and your local community.  Look here:

http://www.nysegov.com/citGuide.cfm?superCat=28&cat=29&a mp;a mp;content=main

You might also want to read my free report on business startup.

Best of luck to you.

Sheryl

Thank you both very much for taking the time to reply to my post. I appreciate that a lot.

So I certainly need to get an EIN. At least that is one thing I can add to my check list.

I`d be selling personalized button, magnets, key chains and candy wrappers. I`d be thrilled to profit $50 a month! I`d say keep it a hobby but everyone keeps telling me to make it a business, so... that is what I`m trying to do. But the less confusing and less expensive for me to start up the better. It`s not worth being totally stressed out over such a piddly amount of profits.

Thanks so much!!

Kimberly

 

 

 

 

 

k

 

 

Kimberly,

There is a lot of good advice above on why you should get an EIN.  However, in the spirit of keeping it simple, you can always start as a "sole proprietor" - which just means you are an individual running your business.   Make a folder for your business expenses and keep track of your income. 

Beyond that, you should determine if you have to collect sales tax and whether you have any special licensing needs for your product.

You can always apply for an EIN later - after you determined that your "hobby turned business" is going to stick.

- Skip





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Accelerate the launch of your web business
www.teamandadream.com

Keeping things simple, especially at the beginning, is always a good idea.

You`ll probably need to spend a little bit of time on the Internet, researching the various rules and regulations that will apply to your particular situation.  It`s not hard and it will be well worth your time.

Look here http://www.tax.state.ny.us/sbc/starting_business.htm

There appear to be several links relating to sales tax info.

It`s always a good idea, if you can, to go to the original source for the various regulations.  Laws do change; something that might have been true for another business owner when he/she got started might not be true for you today.