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5. Pay Self-Employment Tax
You must pay self-employment tax on income over $400 using Schedule SE. Why? Because you are required to pay your fair share into Social Security and Medicare. Oh joy!
6. Get a State Sales Tax Certificate
Contact your state treasury office for information on obtaining a sales tax certificate. This certificate obligates you to pay applicable sales tax on goods you sell. If your product is to be sold wholesale, or if you are buying materials wholesale, inquire about a resale certificate to avoid paying taxes twice.
7. Obey Zoning Regulations
Be sure to check with your city and county offices about zoning regulations for your business location. You don't want to be in position of having to shut down later because of zoning violations.
8. Get Free Advice
Your local Small Business Administration office is a good place to learn more about nuts and bolts of legally operating a small business in your area. This office can answer many, if not all of your questions about doing business locally. Another important resource is Service Corps of Retired Executives (SCORE) at www.score.org/. This organization provides personalized and free counseling to assist you in making right decisions for your business.
Attending to above steps will put your business on a firm footing. For average home business, doing these things is enough to let you charge full speed ahead. However, no two businesses are alike, and it's not a bad idea to consult with a lawyer and accountant for additional information pertaining to your type of business. Doing so may prove valuable for you, both before startup and later on as your business becomes more complex.
Brett Krkosska provides 'how-to' advice on family and home-based work issues. Get start-up guidance, business ideas and inspiration at: http://homebiztools.com Free ezine subscription: mailto:email@example.com