|BUSINESS LICENSING AND BUSINESS REGISTRATION REQUIREMENT -- SELECT A BUSINESS ENTITY TYPE - -Regardless of whether your news small business is a brick and mortar business,online, home, store, concession stand, you are subject to the same requirements any any business because any activity for profit requires taxation as the IRS has determined and licensing as the federal, state, county and city government have legislated. First things first, you need to select the legal form of your business. That is, you need to select an entity from these available ones:|
sole owner proprietor, partnership,LLC or corporation.
All of the above entity types also require a General Business License(not a specific license to your type of business)as well. Some businesses may require a license for the type of business as well. For example, professionals such as doctors, lawyers and engineers need professional licensing at the state level. Same is true for tradesperson such as electricians,plumbers, contractors, cosmeticians, etc DBA (DOING BUSINESS AS) TRADE NAME REGISTRATION In addition, if your trade name is a business name other than your full personal legal name,you will need to file a DBA. For instance, your name is Evanku Tramp, and you do business asBest Widgets By Evanku, the name must be registered with a DBA Biz Name because it is not your full legal name. SALES TAX REGISTRATION Also, note that whatever item that you sell or lease and it is an item that can be touched (i.e., tangible such as equipment, toys, merchandise, electronics,
prepared food) requires a state sales tax ID ( Sellers Permit AK wholesale ID, state ID, retail ID, buyers ID, etc.)to either buy or sell the items or products wholesale and resell them retail. For example, you manufacture
small items to sell, such as crafts, you will need the Sellers Permit to buy the materials wholesale butwhether or not you buy materials, you still need it to sell retail because you need to charge sales tax when you sell. FEDERAL EIN AND STATE EIN If you are hiring workers anytime soon (perhaps within a month or so), you will need a Federal EIN and a State EIN (employer identification number)so you can report and pay withholding taxes. Other instances you will need a federal tax ID are: if you are apartnership, an independent contractor, and a corporation or
an LLC . You can also obtain a federal tax ID as a sole owner and use it as a business tax ID in the place ofa social security number. However, you will still need other registrations, such as licenses, an assumed business name DBA, and tax IDs as described above.
ANYONE PERSON CAN FORM AN LLC OR INCORPORATE!Finally, even one person, sole owner
proprietors working from home or just online can form a LLC or incorporate,in which case, they will not need to file a DBA.