Business Names

[Drewboy22]

Good Morning all,

I have a question for those that have small businesses. I am looking at selling at shows, facebook, etsy, and local. Most will probably be internet and face to face sells. I have a name in mind and plan on creating some business cards for it with pen care instructions on the back.

I was able to reserve the name on etsy and am wondering how important it is to register it with the state. I don't want to make all kinds of cards and sites and stuff and find out that I should have filed or file and find out it is no big deal for internet sales. Make Sense?

Please let me know if you understand my question and feel you have some insight.

Thank you,

Drew

 

[healeydays]

Hi Drew,

I guess it depends on how much yearly revenue you would be making as to how far you plan to take it. Also I have seen some shows that folks from the state do go looking for your license to sell.

Also, I know you're not thinking that far out, but if you are successful, you might want to have a website, and if that's true, you might want to register the website name and just stash it away. Sites like godaddy.com will charge you about $15 a year for a name if it's available. That way, if you do decide after making that 1st 100K that you want a site, you have your name locked up.

 

[jttheclockman]

If you have a state tax then you must collect state tax from sales. There will many people who will come along and explain in greater detail.

 

[mbroberg]

Laws very state by state. You will undoubtedly be required to collect sales tax on in-state sales. You will then need to remit the tax to the state on a quarterly or semi-annual basis. You may need a vendor's license. The shows I sell in require vendors to have a vendors license. You should check with your state Dept of Commerce to see what is required of you and see what options are available. many of us just form an LLC but there are other options out there.

 

[TonyL]

There are the income and tax sides to consider as several have correctly presented, but there are also trademark issues. Another entity may have the same name (just not using Etsy); you may be violating someone's trademark. You also have to decide if you mind if someone else decides to use your business' name. If you do mind, you may want to trademark your business' names assuming has not already been trademarked. Forgive me, if I am reading too much into your into your question.

 

[Smitty37]

There are a couple of things. Depending on where you are located this is a State issue but could be City or County as well.

One thing you should do (and might well have to) is get a business license you will want to make that in your name Doing Business As (DBA) what ever name you have chosen for your business. In Delaware business licenses are issued by the county where the principle place of business is.

If you live in a state that charges a sales tax - you will probably need to get a state issued tax number to set up paying the state the taxes you collect.

If you have employees or don't want to bandy about your SS number you will want a Federal Employer Identification Number (EIN) from the IRS.

Some jurisdictions also have what is called a Gross Receipts Tax...where they collect on your total sales....some (like Delaware) have a pretty high threshold before they start collecting but you might still have to file.

If you think you will ever want your own website you might want to buy a domain name - they don't cost a lot and they do protect your business name on the internet....I own several that are close to the one I use just so no one else can use them.

Having said all that I'm sure the State of Texas has a site you can go to and find all the rules that apply to you there.

 

[Chasper]

Your sales tax collection and remittance is not limited to the state in which you live. If you sell in another state that has a sales tax you will need to register and file regular sales tax reports with the state where you are selling.

Also, try googling the name you intend to use and see what comes up. On the URL line put in your business name followed by .com and see if the name is available. Even if the name is in use, there are work arounds that you can use. If nothing comes up, buy the URL while it is available.

 

[low_48]

Insurance will become another issue for you. Is your shop in your home? Many companies will not insure your shop and tools if you sell product. You will need a separate policy for the business, and then liability in case your display falls on someone at a show.

 

[Drewboy22]

Wow, there is a lot of info to consume. Thanks for all the comments as most of you have mentioned things I did not think of.

Thanks again,

Drew

 

[Edgar]

Here in Texas, you should register a DBA (Doing Business As) in your county if you are going to operate your business as a sole proprietorship. You may also register it with the state, but that is not required.

Registering with your county assures that you have exclusive use of that name in your county, but does not provide statewide protection. You have to register with the state for that.

I have 3 DBAs and my son has one & we only have them registered with our county.

As noted above, you will need to collect & remit sales taxes on all sales within the state. You will need to get a Sales Tax Permit from the state comptroller's office and file quarterly returns, all of which can be done on-line.

Good luck in your new venture.

 

[dogcatcher]

Since you mentioned doing shows, you might as well get you state sales tax account now. Most of the show operators will require you have one.