Receiving $$ in an online business
7/22/08 11:14 AM
Total Views: 682
Total Views: 682
I and a friend recently "started" our own little home business making custom childrens hair bows. We haven't registered anything yet. In the future I plan on building our website. My question is this: At what point do I need to worry about business taxes, getting our tax ID and DBA and all that jazz. Am i legally allowed to have a website where people make purchases without doing any of that. Can you make under a certain amount a year without it or before I start a site do I need to do all that. I do not want to get in any legal trouble down the road, but don't want to spend money we don't have now if we don't have to. Any ideas?
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12/17/08 3:45 PM
Instead of thinking about when to worry about tax IDs, etc, the first thing I would do is make sure you keep your business expenses separate from your personal expenses. They are taxed differently and its easier if you start doing that right away instead of later on... I even recommend using a different credit card for both of them. BUT, .. if you are going to generate more than $5000 Gross Revenue, I would also get a Tax ID, etc.
