I just started an online baby boutique on Facebook and Ecrater. My sister helps me out some, but it's basically my business. It's not making any money yet and I know that when it does, I have to claim it on my taxes. Someone told me that I still have to register the business name in Minnesota (where I'm based out of) even though it's barely even a business. Is that true? And to write my expenses off on my taxes, do I need to register as a small business? I'm just doing this because I enjoy making baby things and I hadn't even thought about it legally being a small business because I'm doing it out of my house and online. I definitely can't afford any extra expenses yet and if I have to pay for a license and who knows what else, I won't be able to have my boutique at all.
Congratulations to you ! I would go to your local state (Minnesota) and ask them first hand. There would be fees of course as of everything if you want to get registered.
Consult them and ask them what is the cheapest path to start up to, if I am not mistaken it is single proprietorship, but as soon as you can afford it, you should do the LLC path. This is to protect your personal property from business property.
Also on a side note can you private message your site as I am kinda interested on baby product.
Again congratulations on your new endeavor
If you are thinking of starting an online boutique, see this guide for Starting an Online Business.
As with any business, you will have to juggle expeneses and profit. If you plan to expand off Facebook and create your own website, some expenses you will incur are web design and hosting costs and state licensing fees.
This simple assessment tool is designed to help you better understand your readiness for starting a small business. Takes less than 5 minutes to complete at SBA.gov.
Also, don't forget to visit our Small Business Assistance and Training page to learn about free counseling and training programs that are available to help you plan and start your small business.
boutiquegirl,
Congratulations on starting your business. Take a look at this business article on Why Register A Business?
As for tax, Minnesota will require you to pay sales tax. You will need to fill out all the paperwork for Minnesota. You should check out 10 Steps to Starting a Business in Minnesota.
Everything shouldn't be too expensive. There may be a few fees went you register.
Free feel to ask additional questions here.
JimD
jthorf | Contributor | 8/14/2010 - 6:34 pm
RedCouchReview | Performer | 8/13/2010 - 9:19 am
paqueteseuropa | Performer | 8/13/2010 - 7:46 am
NicoleD | Former Moderator | 8/12/2010 - 8:55 am
JimD | Former Moderator | 8/12/2010 - 6:05 am
Join The Discussion
You must be logged in to join the discussion. If you already have an SBA Community account, Log In to join the discussion.
New users, Register for a new account and join the conversation today!