Taxes and Your E-Commerce Business

Written by Brian Roe


Starting an online business can seem overwhelming at first. Findingrepparttar right domain name, getting reliable hosting, web design, and figuring out credit card transactions are full-time concerns. One often-overlooked component is taxes. If your website is selling something tangible, you are required by law to report it. Leafing throughrepparttar 108813 myriad of tax rules and regulations is frightening, and some just ignore it altogether (atrepparttar 108814 risk of being audited). However, if you want to save yourself from future headaches and lawsuits, it's best to get everything straightened out as soon as possible.

Do I need a tax ID number? An Employee Identification Number (sometimes called Federal Tax ID number) is a nine-digit number assigned byrepparttar 108815 IRS that identifies your business torepparttar 108816 government. You will need to get one if one or more of these apply: 1.You pay wages to any employees. 2.Your business is a corporation or partnership. 3.You file pension or excise tax returns.

If you arerepparttar 108817 only employee for your business, then you can run your business as a Sole Proprietorship entity, and use your Social Security Number as your EIN. However, you should look at all ofrepparttar 108818 business structures before you decide which one is right for your business.

What are my business entity options? A Sole Proprietorship isrepparttar 108819 most common for an upstart online business. It is owned and maintained by one individual, and has no existence apart from that individual. Allrepparttar 108820 income and expenses are on your personal tax return (form 1040). It isrepparttar 108821 simplest form of business. However, you are personally liable for your company's liabilities. If someone sues your business or your business gets too far into debt, your personal assets can be seized.

A Partnership involves two or more people who sharerepparttar 108822 profits, or losses, ofrepparttar 108823 business. It's just like a Sole Proprietorship, except you need an EIN. Also, profits, losses, and liabilities are split betweenrepparttar 108824 partners.

A Corporation is a separate legal entity fromrepparttar 108825 individuals who started it. It can be taxed and is legally liable for what it does. The benefit of a corporation is that its corporate status does not holdrepparttar 108826 employees liable. The downside is that it is expensive to start, and requires a lot of bookkeeping.

A combination of a Corporation and a Partnership isrepparttar 108827 Limited Liability Company (LLC). The advantage is thatrepparttar 108828 profits and losses are passed torepparttar 108829 owners without taxingrepparttar 108830 business itself, andrepparttar 108831 owners are not personally liable. However, there is no stock, fewer incentives, and loads of paperwork.

As you can see, there are pros and cons to each business structure. It is highly recommended that you talk to a local accountant or lawyer as to which structure best fits your needs.

What other forms and taxes do I need to worry about? Business License There are many types of licenses, and even for an online business you will probably need one to operate legally. Ifrepparttar 108832 business is located withinrepparttar 108833 city limits, then your license comes fromrepparttar 108834 city. If you are outsiderepparttar 108835 city limits,repparttar 108836 license comes fromrepparttar 108837 county.

Fictitious Business Name If your business uses a name other than your own, then it is required byrepparttar 108838 Trade Name Registration Act for you to registerrepparttar 108839 fictitious name (which is also known as D/B/A, doing business as). It verifies that you and your business are one andrepparttar 108840 same. Depending on where you live,repparttar 108841 form is usually filed atrepparttar 108842 county clerk's office.

Web Development Company Has On-Line Templates for Cards, Letterhead, Envelopes, Rubber Stamps and Labels

Written by Charlie McHenry


Future Graphics, developer of DigiQuill www.digiquill.com an on-line, database-driven order entry front-end application for commercial printing - today announced Digiquill Business Services (DBS). DBS, available worldwide throughrepparttar company’s web site enables businesses of all sizes to take control of their recurring printing needs to save time and money.

DBS enables business users to create on-line "Smart Templates" for their business cards, letterhead, envelopes, labels and rubber stamps. The templates are then used to createrepparttar 108812 final images used by printing companies to fulfillrepparttar 108813 order.

"The strategic use of Web sites and email promotions has already reduced commercial production and printing expenses for savvy companies," said David Jeppesen, founder and CEO of Future Graphics. "Now businesses

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