GreenFlamesStudio
10-17-2012, 11:04 PM
I'm taking a hobby of mine and starting a small sole proprietorship business out of it - making chainmail (like the old armor) jewelry by hand. It will always be a side endeavor, but I'd like to eventually expand it into making a few other hand crafted things, and possibly building my own blacksmith forge. I plan to sell my work primarily over the internet, but I want to keep the option to sell to local folks as well.
I've been doing some research on the internet, but I think I just need a kind human being to de-mystify a couple of points for me.
I just received my DBA as a sole proprietorship, which even I understand as something that is pretty necessary :) I'll go file for a home occupation permit in my local village hall here shortly, which seems to be required for where I live.
Am I correct in thinking that if I sell anything, whatsoever, in my state of Illinois that I need to first have acquired an Illinois state business tax number?
Am I correct in thinking that I do not necessarily need a Federal tax ID number, because the business is a sole proprietorship it is tied to my own SSN... but, maybe I want a Federal tax ID number (FEIN?) to reduce putting my SSN on paperwork? Which tax form (forms?) do sole proprietorship folks use? Turbo Tax? Clarification would be really helpful, if possible. I have an old friend who is a former CPA that does my personal tax return each year, but I don't want to slam him with too many newbie questions immediately.
As far as accounting and records keeping - I don't see myself spending $200+ for computer software that can whiz bang through the complex stuff involved with a larger business. I have no employees or other complications - it's literally just me. Is there any software that would help me keep good records? Should I just mimick some Mom & Pop stores and keep a journal of anything financial at all - but back it up on my PC?
Lastly - am I overthinking all of this? I don't know if, for instance, I have to reach a threshold profit number before I need to worry about reporting any income.
I'm a US Army Special Operations Airborne veteran. I'm just trying to do everything ethically for the sake of my country and my own peace of mind, but having some human advice would be helpful.
Thanks very much for any help or advice.
I've been doing some research on the internet, but I think I just need a kind human being to de-mystify a couple of points for me.
I just received my DBA as a sole proprietorship, which even I understand as something that is pretty necessary :) I'll go file for a home occupation permit in my local village hall here shortly, which seems to be required for where I live.
Am I correct in thinking that if I sell anything, whatsoever, in my state of Illinois that I need to first have acquired an Illinois state business tax number?
Am I correct in thinking that I do not necessarily need a Federal tax ID number, because the business is a sole proprietorship it is tied to my own SSN... but, maybe I want a Federal tax ID number (FEIN?) to reduce putting my SSN on paperwork? Which tax form (forms?) do sole proprietorship folks use? Turbo Tax? Clarification would be really helpful, if possible. I have an old friend who is a former CPA that does my personal tax return each year, but I don't want to slam him with too many newbie questions immediately.
As far as accounting and records keeping - I don't see myself spending $200+ for computer software that can whiz bang through the complex stuff involved with a larger business. I have no employees or other complications - it's literally just me. Is there any software that would help me keep good records? Should I just mimick some Mom & Pop stores and keep a journal of anything financial at all - but back it up on my PC?
Lastly - am I overthinking all of this? I don't know if, for instance, I have to reach a threshold profit number before I need to worry about reporting any income.
I'm a US Army Special Operations Airborne veteran. I'm just trying to do everything ethically for the sake of my country and my own peace of mind, but having some human advice would be helpful.
Thanks very much for any help or advice.