# Business license for P/T work at home



## woodbutcherbynight (Oct 21, 2011)

For those that work at home I was hoping to get some advice on what you did to start up, even if part time which is what this will be. I have no ambitions to make a mint nor do I honestly believe I will make enough money to quit my day job. Mostly I wish to sell what I make online, legally, and have some mad money for when I want to get equipment or maybe a vacation to St. Petersburg, Russian with the wife. I have downloaded the forms for getting a business license and the only thing I have no understood thus far is this E-verify requirement which makes no sense as I am the only "employee" and have little desire to have any help. Kinda takes the enjoyment out of it if I have to teach helpers what to do. The items being sold are small pens, boxes, in nature so shipping is easy enough to set up; a bank account can be had by registering with a local bank, easy enough. Taxes despite not wanting to pay them are of course a requirement but I am not seeing making more than 5K in a year unless I give up some of my precious family time. Which again is not happening, this is merely to be legitimate and keep the government from stepping in years later with a hand out asking for money, like my ex-wife.


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## unbob (Mar 10, 2013)

I wouldnt bother with all that, such a small amount, just declare it on your regular taxes. as other income.


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## a1Jim (Aug 9, 2008)

Each state,and city has it's own laws and rules. If you have investigated the laws and rules in you area let your conscience be your guide.


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## Finn (May 26, 2010)

IT is easy and free to be "Legal" Apply to your state for a sales tax number. Once you have that, you are legally "in business". As has been suggested just record any profits or losses on the other income in your federal tax form. This is what I do.


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## MNgary (Oct 13, 2011)

I thought e-verify is a way to check that a potential employee is legally allowed to work in the U.S. i'm not sure how this is needed if one has no employees. But I certainly have no legal training!


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## woodbutcherbynight (Oct 21, 2011)

Who knows? I deal with USCIS for my wife who is working towards citizenship, they NEVER answer a phone, like ever. So asking a question and getting an answer from them, I have a better chance with the lottery. (laughing)


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## Bearpaw (Mar 19, 2008)

Mike, I am talking to a CPA now about the mfg. rep. business I am in. They pay with a 1099 form to report my commission. I have a friend at church that does craft shows and I will ask him how he handles that. So far most of the things that I have sold the money has gone back to buy materials or has been given to the church for mission trip for other. So I do not worry about that, but I too want to start selling more craft items, so I may run that into the mfg. rep earnings, or do any craft shows or get an Etsy site for selling. I will share what info I get since we are in the same state.

By the way, is Sunday afternoon a good time to bring the car down about the brakes? You can reply by e-mail or FB.


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## woodbutcherbynight (Oct 21, 2011)

Thanks, have a issue that must be worked around to make this happen that is why this needs to be legal. It is not like I plan to make alot of money, just protected from outside sources coming in and asking for a piece of the action with no interest or expense, kinda like a leech. (laughing) Sunday is good as always I am off and have nothing planned other than the yard, or if weather is not helpful = the shop.


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## Blackie_ (Jul 10, 2011)

I'm not sure about that E-file either, never heard of it, I run my own business, I'm the only employee and have a tax ID number, for what you are doing sounds like you don't need any of this stuff, as for as a business name goes, I always put my full name in front of my business name so as not to infringe on others. If ever you plan on doing shows setting up a booth and such then a tax ID number is more then likely a requirement depending on your state as both Jim's mentioned.


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## woodbutcherbynight (Oct 21, 2011)

Thanks for the input, I will be looking into this over the next few weeks hopefully getting answers from local agencies and an attorney.


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## Grandpa (Jan 28, 2011)

I run a small part time business. I have an LLC for it and I had to file a paper form saying I was a U.S. citizen. Sounds crazy. If I chose to not have the LLC I wouldn't have to do this in my state. If I wasn't a citizen I wouldn't have an LLC and pay taxes…..????


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## Marty5965 (Jan 27, 2013)

Hey Grandpa, you don't have to be a citizen to pay taxes <g>. Uncle Sam takes a fat chunk of my annual salary and I'm a resident alien. I could also have an LLC. When I ran my own business here in the state of OH, all I needed was a tax I.D. I was a sole proprietor. Back then (it was about 8 yrs ago), unless you made in excess of a certain amount profit (profit being the operative word, not turnover, or accounts receivable), the IRS considered it a hobby, as opposed to a business. The only thing I would caution anyone about is, keep your business and personal expenses totally separate. Also, I would not jump at the chance to write off part of your house expenditure as "business expenses". While it looks enticing, and you might save a bit of money, it gets ugly if you sell your house because part of it "belongs" to your business. As always, get legal advice if you think you will ever be more than a self-paying hobby.


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## Puzzleman (May 4, 2010)

E-verify is the governments electronic system to verify that people are eligible to work in the USA. The only time this comes into possible play is this if you are hiring employees. It is not required to use e-verify as you can use the I9 forms as well. The government is trying to promote this as a easier and more accurate system.


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## woodbutcherbynight (Oct 21, 2011)

*Puzzleman*, oddly my local county government insist you have this in order to get a business license. Despite being self employeed. Some new rule along the same lines as having to bring 5 pieces of proof of who you are to get a Drivers license while the illegals get one and at a cheaper rate. Go figure..


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## oldworld124 (Mar 2, 2008)

Turn in your Citizenship, become and illegal, and do whatever you want. It is much easier.


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## woodbutcherbynight (Oct 21, 2011)

*John Orms*by (laughing) sad but true huh?


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## Marty5965 (Jan 27, 2013)

No kidding, here in OH they are trying to allow illegals to have legitimate drivers licenses.


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## nate22 (Jul 12, 2010)

For my business I have a sales tax number. Even though my business is still small I do it so the state or county don't come along and put me out of business so I pretty much do it just to protect myself. And appling for one is pretty easy.


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## woodbutcherbynight (Oct 21, 2011)

Thanks, it is a project I am working on but for the moment no rush ya know?


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## Knothead62 (Apr 17, 2010)

I build custom fishing rods. I do collect sales tax and pay the federal excise tax as required. Locally, I only need a business license if I make over $4k during a calendar year. Check with your county clerk's office or where you get the business license for correct information.


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## Knothead62 (Apr 17, 2010)

As an addition, my father and I had a sales rep business for 7 years. Our CPA/attorney advised against incorporation of any kind. We would have to pay both corporate taxes and individual taxes.

BTW, the opposite of legal is now "undocumented."


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## woodbutcherbynight (Oct 21, 2011)

*Knothead62* in addition to all the taxes my child support would go up. I have no issue paying but one does not get ahead by paying 33% taxes, pay the vendros for product, pay shipping, gas and buy equipment, then extra in child support. For every $100 I would make, my net profit = $5-10. I can wait, amass product and when the leech dislodges stitch the wound and maybe strike out on my own ya know? (laughing)


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## jgreiner (Oct 23, 2010)

I'm not in business as a woodworker, but I am as a software developer and I'd think the business principles would still apply.

My recomendation is to create an S-Class Corporation, here is is a good explanation http://en.wikipedia.org/wiki/S_corporation

an S corporation, for legal purposes is treated as a separate entity, this means if you are ever sued the corporation get's sued, not you and you won't lose your house.

For tax purposes, the taxes are all passed to the shareholders (ie you), and so you'd be taxed the same all the profit your company makes would be treated as income. But you can also write off things like tool/wood purchases, health insurance if you pay for it yourself.

If you get really creative you can rent your garage to your company, this allows you to write off a portion of your electric, and any major home repairs. But that can get a bit complicated more than you may want.

So the long and the short .. an S-corporation provides the protection from lawsuits, without complicating your taxes too much.

-jeremy


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## woodbutcherbynight (Oct 21, 2011)

Thanks, I will look into this.


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## OnlyJustME (Nov 22, 2011)

Don't forget to adjust your insurances if you start running a business out of your home. I don't think home owners will cover certain aspects with a business in the home.


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