# Making my business legit...



## KyMama (Jun 15, 2011)

I started a small home based craft business last year more as a hobby than a business. My sales really took off in November and December because of Christmas and I'm not comfortable taking anymore orders without making my business legal. I have registered with my state, and will apply for my EIN on Monday from the IRS website. I'm still trying to figure out what I need at my county level because no one seems to know who I need to talk to, but I plan on getting that resolved next week also. 

Am I missing anything obvious? I know that rules and regulations vary from state to state, but just wanting to make sure that I'm at least covering the basics. 

Also, if anyone else is in Kentucky - how do you pay the collected sales tax to the state? I know our tax rate and how to collect, but I'm unsure about what to do with it after I get it from the customer. Or if someone could tell me what I need to search for I don't care doing my own research, but I believe I'm wording my search wrong because I haven't found anything useful.

Thank you,
Callie


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## DaynaJ (Dec 5, 2007)

retired business people that will meet with you & tell you a lot of info. This used to be called the SCORE program, not sure if it still is. Dept of Revenue for your state will be able to answer alot of questions. Also the business license office in your county court house. Ask other business owners in the area, even the local convenience store might know. Good luck. It's a pain in the derriere, if you don't expect to continue selling as much, I would check & see if there is a minimum before you have to declare your income to the state sales tax, etc.


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## TnAndy (Sep 15, 2005)

Also, you don't need an EIN from the IRS unless you plan to hire paid help. A solo deal just use your SS#. You'll be filing a Schedule C (or C-EZ depending on your size) to report income, expenses, etc. Keep GOOD records and receipts.


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## Wendy (May 10, 2002)

I'm doing the same thing. I need to get a certificate from the state to collect sales tax. They will then tell me how often I need to file those. Could be monthly, quarterly, or even yearly depending on my sales. In Indiana I can do all of that on-line. I hope to get a store set up here on the farm besides my on-line sales.


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## Maura (Jun 6, 2004)

Once you have your sales tax license you can change the name of your business, change what you sell, have more than one business. You can put it all on the same license number. When you apply for your assumed name/business license, the county notifies the state and they should send you a packet of information and a form to fill out for the taxes. If you don&#8217;t get anything in a couple of weeks, then call them.

Check out what you have to pay taxes on. I use CCNow for my website (which now accepts Paypal) which is set up in a non tax state (Virginia?). I don&#8217;t have to collect sales tax for anything outside of Michigan. Technically, people buy from CCNow and I drop ship. If someone contacts me directly and wishes to pay cash or by check, I must collect sales tax.


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