For some reason, I guess I just assumed that I could start selling products right away. I didn’t even think about the legal issues that would arise. Luckily, I’m taking a course on web business creation. My teacher had us look further into it.
I started by figuring out what kind of legal structure I want. There are corporations, partnerships, sole proprietorships, and a host of other structures. I weighed the pros and cons and decided to stick with the sole proprietorship. It is the simplest method to start up. It also seemed fairly simple to fill out taxes for because it just counts as your direct income.
After deciding on my legal structure, I looked at licensing. I was a little confused because the business will be online, however, it looks like I’m going to need a license from Idaho. Every business needs a professional business license, I believe, regardless of where it is located. I’ll also need a sales tax permit before selling my product. I’ll need one for state taxes as well as one for federal taxes. I’ll still need a permit, but luckily, my plugin for selling my products automatically adds on the sales tax.
It was incredibly helpful to look online for what is required. I lot of government sites don’t say outright what you need, so it gets confusing. It was helpful to find information on other sites.