Tuesday, August 23, 2011

Is your Etsy or crafts business legal?

The process for making a business “legal” or obtaining a business license or permit can sometimes be confusing for Etsy shop owners and craftypreneurs. Here is what you must know.

You obtain a business license or permit from your state. This process is called “register to do business”. Rules vary from state to state. Some states require you to file an “assumed name” or “dba” if your business name is not the same as your name. You must check with your State’s “Secretary of State” office to determine what your state’s requirements are for registering to do business in the state. You can go to the IRS’s listing of state websites at  http://www.irs.gov/businesses/small/article/0,,id=99021,00.html to get the link to your state’s “Secretary of State website.” If you are unsure what to do you can call or e-mail your state's secretary of state office. You can also read information provided at MyCorporation.com.  This is an online service that will assist you with incorporating and forming a business for a fee.  Their website has a lot of free information that you can refer to.

You may be asking yourself, what about the IRS? Don’t you get a business permit or license from them? No, you don’t. You pay taxes to the IRS but you do not register to do business with the IRS. I'll cover that in the next post.

For a free article "10 Things You Must Know About Taxes, Bookkeeping, and Business Licenses" and for free Excel worksheets just for Etsy shop owners and creative entrepreneurs visit my website.

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