Business Questions:

Robert_Phelps

Robert_Phelps

Joined
Nov 29, 2005
Messages
475
This spring, I plan on starting to make knives as a side-profession in earnest. What do I need to do and get to be legal? Tax ID? Register my business name?

..Besides upgrading my membership, of course :)

-Robert S. Phelps
 
You have to first find out if your area is zoned for commercial. The rest depends on your state. In WA you need a state and local city business license and if you structure the business other then a sole proprietorship you will need an EIN (tax number).
A local accountant can help you with alot of the technical/legal info. for your particular area.

Your state business license will let you buy supplies and materials to be used in manufacturing and not pay sales tax on them.

I am a strong advocate of incorporating so you can shield your own personal assets from liability and not have the corp income raise your tax bracket. There are alot of benefits of inc or LLC's.
 
My house would probably be residential, wouldn't it? (Kind-of a rural suburban area)

Is there some local Gov't office I could call and ask what I need for Georgia?
 
Your local department of licensing or the equivalent can tell you. If you do inc contact me and I can show how to make it 100% lawsuit proof. It's very easy and most corps do it.
 
I got a business license for a home business for internet sales but under my business name PatrickKnives. I am not sure I could get one for knifemaking in my neighborhood. There are several business that operate out of the gargage near me. They dont seem to mind as long as I send the annual check. I also have a California Resale certificate, knife shows in CA require a resale certificate to get a table, it also makes you business legitimate for tax reasons. You also need the business certificate to get into the yellow pages.

One last thing, open a checking account and get a bank card with you business name. It will make tax time easy... I am suprized how many people try to run a business out of their personal accounts. I keep all my expence reciepts and record them monthly in a ledger.
 
B Finnigan said:
You have to first find out if your area is zoned for commercial.

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This may not be necessary. It all depends on your location. I can do woodworking or blacksmithing out of my garage so long as sales are less than some amount. Above that I would need to meet a different set of requirements. The distinction is that below some level it is considered "hobby" or sometimes "part-time".

Robert

you need to talk to someone in you local and state governments. Depending on where you are there may be a local office of the small business administration close by. THey can answer most of your questions and can direct you to the correct gov't office for what they can't answer.

ron
 
Blue_Dragon said:
My house would probably be residential, wouldn't it? (Kind-of a rural suburban area)

Is there some local Gov't office I could call and ask what I need for Georgia?
Click to expand...

When My wife started a small business on our place our local university (Div IIA national football champs this season)
VSU's business dept was VERY helpful in helping her get it set up, as was our local Better Business Bureau.
They told her who to contact and what they would want. If your near a UGA system school contact their Business school.
Ours had a Small Business Proff.
Good Luck
 
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