One of the concerns of many who start a work at home business is how to legalize it. This should be one of your first concerns at the start up of your business. Here are the steps that you need to take to make it legal:
- You have to have your Tax Id number if you are working by yourself or Employer Identification Number( EIN) if you have employees.
- Get a business license. You may have to register your business with city hall or pay them to receive one.
- Find out what your local tax laws are.
- Determine whether your business will be a Sole propietorship, a General Partnership, a Corporation, or a Nonprofit Corporation.
- Depending on the type of business you have, you may need to find out what the zoning laws are in your town. For example, It may be illegal to sell a certain product or service in certain areas.
- What are your state tax laws? Do you have a permit, or license for your type of business and is it up to date.
- Another thing that must be registered is your business name.
- If you are selling products a small portion of your sales must be paid to the state as a tax requirement. Therefore, it is important that you get a resale tax certificate to avoid being taxed more than once.
- Know what tax forms are necessary for the self employed. Find out what types of fees you will owe for taxes.
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