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What exactly are the steps that I would need to do to start a home based business

by breisingermela, Window Shopper

  • Created: January 22, 2011, 7:34 pm
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4 comments

I'm sure everyone has heard of partylite, or Usborne Books. These are companies that have 'home parties', where the consultants make commission of their sales. 

 

I have a new idea in mind for home parties, but will obviously have to start off all by myself until I can work myself up until I can pay someone else to do this. So, for the meantime I will be working for myself with no employees.

 

With this being the case, what are the laws that I have to abide to create this business?  Do I just have to get a TaX ID number?  Is there anything else I would need to do?

Tags: Discuss Popular Topics, Self Employed & Home Based Business
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bostdorff | Performer | 6/7/2009 - 4:13 pm

If you have no employees you are probaly safe filing an ASB   Catherine Owner SiteSires
Professional Web Site: http://sitesires.com

lisaspassion | Window Shopper | 6/2/2009 - 2:07 pm

I am a Passion Parties Consultant and I am looking to start my own business as well. I am trying to find out about permits or licensings that are involved and seem to keep going in circles on the website. Have you had any luck? I am in NY so they may be different depending on your location.   Thank you,  

britts425 | Performer | 5/30/2009 - 2:16 pm

If you are going to open your own business like this, you would want to register a business name or fictious business name. My reasoning: brand recognition is extremely important and you want to look like a legitimate business, so when you start going to people's houses, they are going to want to know what your business name is. It is important that you register one, to ensure that no one else has the same business name that you are using because you could possibly get in trouble for using someone's elses name if it is already registered.   As for taxes, I live in Florida and we have to collect sales tax for everything we sell if it is for business. If it is a hobby and you are selling things like that than I don't believe it is necessary.    This website has information that you need to know for your different states: http://www.business.gov/register/steps-to-register.html     If you still have questions,you can get a free business consultation at the website below and they should be able to answer any questions you have:  http://consultations.exceptional-business-solutions.com

Shimon | Performer | 5/13/2009 - 5:08 pm

Hi,   It depends on where you are located.  Check with local laws to see if you need any license from the state, although I doubt it for something like this.  Also, if depends on whether you want to be a sole proprietor or some other entity (LLC, corporation).  If you want to be some other entity, you will have to fill out some paperwork (you can hire an attorney in your area to do this). You will be taxed differently based on the type of entity you are. Sole Propriotership is simple and all the tax of the business flows through to you personally -- it's not treated as a seperate entity. With LLCs and Corps., they are treated seperate from the owner and they have certain tax disadvantages but have limited liability as an advantage. Good luck with your exciting new venture and let me know if you need any other pointers regarding how to start. 
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