Brand New to Everything! Kind of Long, advice needed!

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CraftyRedhead

Well-Known Member
Joined
Sep 19, 2013
Messages
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Location
Bonham, Texas
Hi! I'm ready to branch out and start selling sugar scrubs and salt scrubs, and I'm about ready to jump into the magical world of Etsy. I'm not looking to make any real money, just test the waters and get myself out there. I've got several great recipes, a name and a logo/label design. So I'm going down my checklist and I'm trying to figure out what to do now. I live in Texas, so I know I need to get myself a sales tax ID number, but to do that I need to register my DBA. So I'm planning to go to the courthouse Monday and get my DBA, so I'm working on that. What else am I missing? Do I need to worry about insurance at this point? I haven't even set up my Etsy shop, so I feel silly looking at insurance already, but I don't want to do things wrong here. What did you guys do starting off?
Also, my husband is asking me about how taxes and such work at the end of the year.. and I don't have an answer. I've spent the better part of two weeks researching just how the DBA works online, and I'm more confused now than I ever was. I've hunted through this forum and seen tons of conflicting information, I'm guessing it's because of the different rules per state? Any help would be great, I really felt like I had a handle on this, but now I feel as though I'm drowning a bit!
 
First, you need to check the zoning for your workspace and see if you're allowed to sell out of your location. The DBA is nothing. Go to the courthouse, fill out the form, they'll approve it and take your money. Apply online at http://www.window.state.tx.us/taxpermit/ for your sales tax permit. Once you've gotten the permit, the state will send you a form to fill out so you can pay the sales tax you should have collected. At the end of the year, you'll file your small business taxes.
If you are going to sell anything you make, you should get insurance.
 
Do I need to get a business license? I got my DBA today, and I had to check that I was a sole proprietorship. I don't have any sole prop paperwork though, and today is the first time I've ever called it that. If I have my dba and I apply for my tax number is that enough to call myself a sole prop? I'm so confused
 
Oh yeah, I forgot to mention that zoning wise I'm fine, I'm in the country on 10 acres, so at least I've got that covered. I'm also looking into RLI for coverage, I saw a post on here recommending them. Are there any other companies I should look into?
 
for the license, you need to check with your county. I'm in Tarrant and there is no "business license", per se.
Anyone can call themselves a sole proprietor - you can google the IRS for the definition. It will tell you which forms you need to file at the end of the year.
RLI is good for anyone who sells less than $5k per year.
Doesn't hurt to apply for your EIN number either. Most of the time you will just use your social security number, but you can use the EIN if you don't want to hand out your SS#.
It is always a good idea to open a checking account with your DBA - this will help you keep your business expenses and income separate from your personal stuff and gives the impression of professionalism.
 
Thank you so much everyone! I swear, every time I think I have a handle on what I'm doing I just get more lost! I'll wander the irs site some more :)
 
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