Ebay to Ecommerce...now what?

jacinda165jacinda165 Posts: 1subscriber
edited April 2009 in Business Planning
Hi everyone!
I`m new to this site and I have some questions I hope someone could answer or point me in the right direction.
Last year I had an ebay store that I have since turned into an ecommerce store. Originally it started off very small, more like a hobby, but now it has turned into more of a business. I think I need to register as a business but not sure where to start. Here are my questions:
1. I think I want to stay as a sole proprietorship, do I have to register as a business?
2. Do I get a tax id number with the state, or federal or both?
   -A very small percentage of sales actually comes from the state I live in, will I still have to pay state taxes? Or is there a certain amount of sales that the state allows before taxes will have to be paid?
3. Does a sole proprietorship pay taxes quarterly or annually with my normal taxes?
Thank you!

Comments

  • 4Founders4Founders Posts: 0subscriber
    Sole proprietorships are actually the easiest type of legal entity to establish.  You create one by default just by virtue of operating your business.  No special paperwork is required, beyond any specific business licenses that are required by your local government.  I would suggest checking with your local SBA office for those details.
    You actually won`t need a tax ID at all if you`re going to go with a sole proprietorship.  It`s not a corporation, so it doesn`t exist as a separate taxable entity.  Rather, you`ll just file all of your business revenues as personal income.
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