hotsauce32
10-08-2012, 03:12 AM
So I'm thinking of starting an ecommerce website (drop shipping). I'm going to become sole proprietor rather than an LLC, at least at first. LLC's in California are subject to an $800 minimum annual tax, and that's out of my budget and out of the question.
I've done some preliminary research and I'm a little confused. Do I have to be registered with the county? Some sources say I would have to file a DBA; however I don't need a DBA if my surname is in my business name (i.e., <my last name> eSales). Is that true? I also read another source saying my full legal name has to be in the business name. Which one is true? If it is true, can I go ahead and get my website up without registering with the county? Is there anything to register with the city?
What about state level? The ecommerce blog I'm following says to get a "state sales tax ID" before dealing with suppliers. Is this the right place for me to get that: California State Board of Equalization (http://www.boe.ca.gov/) ? I only see something about a seller's permit, would a sales tax ID be included in that?
And should I get an EIN? I've read that sole proprietors don't necessarily need one, but would it make it easier when building relations with suppliers/distributors?
Looking forward to hearing your answers
I've done some preliminary research and I'm a little confused. Do I have to be registered with the county? Some sources say I would have to file a DBA; however I don't need a DBA if my surname is in my business name (i.e., <my last name> eSales). Is that true? I also read another source saying my full legal name has to be in the business name. Which one is true? If it is true, can I go ahead and get my website up without registering with the county? Is there anything to register with the city?
What about state level? The ecommerce blog I'm following says to get a "state sales tax ID" before dealing with suppliers. Is this the right place for me to get that: California State Board of Equalization (http://www.boe.ca.gov/) ? I only see something about a seller's permit, would a sales tax ID be included in that?
And should I get an EIN? I've read that sole proprietors don't necessarily need one, but would it make it easier when building relations with suppliers/distributors?
Looking forward to hearing your answers