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Okay, I have a problem now!


StephD

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I've been making melts and passing out testers like crazy and have quite a few down ready to sell. Last week I called our economic development office to see what I needed to do business wise, i.e. business name, insurance, tax ID, etc. I pretty much got the run around from 3 different people and they told me as long as I don't make over $400 for the year, not to worry about it. I guess they are comparing this to crafts, where if you make over $400 you have to claim it on your taxes. Well, I had dropped off a melt for a local business owner as she really helped me out with some things a couple of months ago and she's always nice when I go into her business. I talked to her today and now she wants to buy the melts wholesale. So, I told her about the whole conversation I had last week with the people that were supposed to know enough to help me out and she said not to worry about it and we'll discuss it next week. She had customers come in so we couldn't talk then. What the heck do I do now? I was just planning on selling these to family and friends. I wasn't expecting to wholesale to anyone anytime soon! lol In a way it's a good thing, but I want all my ducks in a row so I don't get in any trouble! :)

Stephanie

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I think what you'd need to do is get a state tax ID number and set yourself up as a business. There are someplaces when you make purchases from them they will require some type of tax id or business license. I know for my state it wasn't that difficult to obtain. I think way back then it was like $130 to get one. Plus, if you plan on doing any kind of wholesaling, you should have one. When it comes to taxes and doing business, it's better to be safe than sorry. Protect yourself, it's worth it.

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If your Ec.Dev. personnel is anything like what we have here, they couldn't care less about you. You're more of a nuisance to them--you're too small time for them to bother with. They are interested in bringing in factories and warehouses, and do NOTHING for mom & pop shops.

Gosh, I don't remember where you need to register your business name--I think it's with your Secretary of State. You need to get in touch with your state's revenue dept. and you can find out about tax issues with them.

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I've been doing some researching online and found that I can go to the local college here and get help with getting set up. It really kind of irked me that I called the economic development office which is in place to help businesses get set up and they didn't know what I needed to do. Geesh. Anyway, I'm gonna make some calls and hopefully some appointments tomorrow/next week and get that set up. I like doing things by the book. I don't want to get in trouble for anything! lol Thanks for the advice! Hopefully I'll have things moving along next week!

Thanks again!

Stephanie

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Hey, Stephanie.

In Illinois, you go through the county clerk to get your DBA (Doing Business As) if you're using another name. Then go onto the state website, and you can fill everything out for the tax ID. I'll try to find the link for you.

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You can (usually) apply online for a sales tax ID at your states website (I was able to), and I got my DBA from my county clerks office, I simply filled out the form and paid $10. Do seek out a CPA for taxes, there are a couple of ways you can claim your "business" taxes and expenses, and a CPA with first hand experience with small business will know what will work best in your situation.

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Thanks to everybody. I feel a little overwhelmed! lol I just wasn't expecting to get picked up by a business just yet! I'm gonna be making my phone calls tomorrow and getting it done. I have to talk with the business owner next week. Luckily she can help me out with all that, too. Thanks again! :)

Stephanie

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If you are working out of your home (which I assume you are), you should check with your city too. Just to make sure they don't have any issues with you running a business from your home. I checked with mine when I opened three years ago and they told me as long as there wasn't an increase in traffic (customers coming and going all day - geeze I wish & with lots of product purchased in their hands!), I'd be ok. But I do know that in some cities you have to file with the city before conducting any business... So I'd check... Good Luck!

Life & Light!

Tish

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