Ask Leslie : What permits or licenses do I need for an online boutique?
Hello Leslie,
I was hoping you could tell me what permits and/or licenses one would need in order to open an online boutique. This would be a home-based business with no current employees (just me to start). Can this be done under a sole prop? Also, how would one go about obtaining a sellers permit (wholesale license)? If you could explain this process to me, in the order in which it would need to be done, I would appreciate it. Let me know if you need any additional information. Oh yes, just a little FYI, I live in California. Thank you for your time!
Christina
Hi Christina,
Congrats on your new business idea.You could operate as a sole proprietor, but you should read up on the differences between the different options. The most important distinction has to do with liability and protection. As a sole proprietor, your personal assets aren't protected as you work individually. Other options make just the company liable and your personal assets (savings, house etc) are protected. Even though you are working alone there are options that don't involve having a partner. Talk to a lawyer or get a good book (like Nolo Press).
Permits, licenses and taxes are different not just by state but often by location. If you live in a city, it’s likely the permits are assigned through the city whereas if you are in a town, it may be through the county. Check the white government pages in your phonebook for the number of the office in your area that handles business permits/licenses. That office will be able to give you the details. It should also be able to direct you to the right forms/office for getting a tax permit and information on paying sales tax you collect. Be sure you study the information given to you about collecting tax. Theoretically, you collect and pay tax to California on people who buy from you and reside in CA. With the growth of the Internet and states all trying to get their cuts, there has been much discussion on this issue. Check out this site: http://www.newrules.org/retail/inttax2.html with sales tax issues for internet businesses. Down near the bottom it has some specific information for California.
Other things you need to check are zoning. Even though you don't intend to run the store in your home, there may be zoning against a home business (most zoning laws were made before the internet). If there is a zoning issue, its likely, you would just need to fill out a waiver indicating that you don't have dangerous materials and won't increase traffic.
You should also check whether or not you will need a DBA (Doing Business As). If your business is named something other than your given name, you will likely need one. Again the business office should be able to help.
Another source of assistance will be your local Small Business Administration or SCORE office. Check your phonebook for location and phone number of the office near you.
You can get more information at WAHS's Biz Basics Page.
I hope this helps. Good luck.
Leslie Truex
http://www.workathomesuccess.com/
I was hoping you could tell me what permits and/or licenses one would need in order to open an online boutique. This would be a home-based business with no current employees (just me to start). Can this be done under a sole prop? Also, how would one go about obtaining a sellers permit (wholesale license)? If you could explain this process to me, in the order in which it would need to be done, I would appreciate it. Let me know if you need any additional information. Oh yes, just a little FYI, I live in California. Thank you for your time!
Christina
Hi Christina,
Congrats on your new business idea.You could operate as a sole proprietor, but you should read up on the differences between the different options. The most important distinction has to do with liability and protection. As a sole proprietor, your personal assets aren't protected as you work individually. Other options make just the company liable and your personal assets (savings, house etc) are protected. Even though you are working alone there are options that don't involve having a partner. Talk to a lawyer or get a good book (like Nolo Press).
Permits, licenses and taxes are different not just by state but often by location. If you live in a city, it’s likely the permits are assigned through the city whereas if you are in a town, it may be through the county. Check the white government pages in your phonebook for the number of the office in your area that handles business permits/licenses. That office will be able to give you the details. It should also be able to direct you to the right forms/office for getting a tax permit and information on paying sales tax you collect. Be sure you study the information given to you about collecting tax. Theoretically, you collect and pay tax to California on people who buy from you and reside in CA. With the growth of the Internet and states all trying to get their cuts, there has been much discussion on this issue. Check out this site: http://www.newrules.org/retail/inttax2.html with sales tax issues for internet businesses. Down near the bottom it has some specific information for California.
Other things you need to check are zoning. Even though you don't intend to run the store in your home, there may be zoning against a home business (most zoning laws were made before the internet). If there is a zoning issue, its likely, you would just need to fill out a waiver indicating that you don't have dangerous materials and won't increase traffic.
You should also check whether or not you will need a DBA (Doing Business As). If your business is named something other than your given name, you will likely need one. Again the business office should be able to help.
Another source of assistance will be your local Small Business Administration or SCORE office. Check your phonebook for location and phone number of the office near you.
You can get more information at WAHS's Biz Basics Page.
I hope this helps. Good luck.
Leslie Truex
http://www.workathomesuccess.com/
posted by Leslie Truex at 9:11 AM
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