Starting a small business

Daniel Davis43,

Look, if your product or service costs $33, plus a $7.75 sales tax, the customer ends up paying $41. Out of that total, you keep your 100, which means your actual price is just the cost of what you're selling—the remaining $7.75 is just the state's cut that you're holding onto temporarily before passing it along.

Sure, once you hit retail, those prices look steeper to the consumer, but you always have the option to stay under the radar of the IRS and avoid registration until your annual revenue hits $28.

That is all well and good, but let us return to my initial post from yesterday. At this point, Henry Edwards33 and the rest of you should have full clarity regarding my questions. It was actually quite clear from the start, though perhaps Henry Edwards33 missed the fact that I was merely presenting a hypothetical scenario... after all, one wouldn't dream of launching a small business or a corporation without first understanding the tax implications. If the business were already operational, most of these figures wouldn't be such suspiciously round numbers, would they?
We find ourselves back at square one. If my initial assessment was incorrect, please point out the errors or provide the proper details. If there is any additional information required from my side, do let me know, as I truly believed I had covered everything in my first message!
Best regards! 😉

Hello there!
I am planning to launch a business selling apparel, and I intend to handle all the manufacturing myself. I was wondering if it is possible to register as a sole proprietorship even though I don't have a specific vocational degree in the field? I graduated from high school and completed some college studies...
Setting up an LLC feels a bit too expensive for me right now, so I believe starting as a sole proprietor would be perfectly sufficient.

Arthur Rodriguez18!
Let me provide you with a reliable answer. To manufacture any kind of textile goods through a small business, you are required to either hold a master craftsman certification yourself or employ someone who does.
Regarding retail sales, the requirements are slightly more complex. If you are operating a retail outlet in a specialized store, you must possess a sales certification or a high school diploma in a relevant field—specifically textiles—alongside training in retail management. Alternatively, a standard high school diploma paired with specific retail training would suffice.
Best regards! 👋

Daniel Davis43 said:Arthur Rodriguez18!
Let me provide you with a reliable answer. To manufacture any kind of textile goods through a small business, you are required to either hold a master craftsman certification yourself or employ someone who does.
Regarding retail sales, the requirements are slightly more complex. If you are operating a retail outlet in a specialized store, you must possess a sales certification or a high school diploma in a relevant field—specifically textiles—alongside training in retail management. Alternatively, a standard high school diploma paired with specific retail training would suffice.
Best regards! 👋

Thank you for the information! So, there is truly no way for me to sell goods that I produce myself through a sole proprietorship without passing an exam or having a business degree? I was actually planning on wholesale. It seems unfair that a corporation is my only real option!

You can either hire a professional, like Daniel Davis43 suggested, or you'll be forced to go through a third-party agency...

Arthur Rodriguez18, I would suggest heading down to the local Department of Commerce just to be absolutely certain. What I mentioned to you previously was accurate around 2006, and while regulations do evolve, these types of structural rules rarely change...
In my estimation, hiring an employee with a retail license shouldn't pose much of an issue for your ability to sell, especially since finding staff who have completed their master certifications is such a significant challenge. Are you planning on managing the entire operation entirely on your own?

P.S. It isn't really necessary to quote the entire previous post when you are replying immediately after.🧐

👋

I truly believed I could manage this entire venture on my own without any outside help.😢 My original vision was to handle everything from fabric processing and dyeing to the final sales myself, while simply outsourcing the sewing to a contractor. It turns out that is much more complicated than I anticipated! Thank you all for the helpful advice.🙂

Hey everyone. I’ve got a couple of questions for you all 🙂

So, here's the deal—I know that as someone with a full-time job, I can technically open my own small business, and I'd be responsible for my own social security and taxes, but instead of that flat-rate tax setup regular freelancers get, I'd have to pay based on actual income... but what I'm really getting at is: what happens if my business makes absolutely zero profit? Like, if I don't land a single client? What kind of "penalties" am I looking at, and how much am I actually on the hook for regarding those contributions?

My second question involves my current gig. I work for this IT corporation, but their official registration lists a massive range of services—half of which they don't even actually provide in reality 🙂

The problem is, I need to know if there's any way around the rule about not competing with your employer. I want to jump into web and graphic design, but since the company I work for has those exact services listed in their official filings—even if they aren't actually doing them—it feels like a legal minefield. Is there any loophole or way to navigate this without running into trouble? I'd love to hear what you guys think 🙂 thanks 🙂

I am considering launching a small business specializing in the installation of security systems, such as video surveillance networks.
What specific requirements must I satisfy to make this a reality?
P.S. My background is in mechatronics, and my partner is a computer technician.

cosmicviper36,
look, if your small business isn't actually pulling in any revenue, you aren't paying those self-employment taxes—so there are no penalties to worry about...

secondly, theoretically speaking, you can run your own side hustle even if you're already employed by a company that operates in the exact same industry as your business. at that point, it’s less about the law and more about your relationship with your boss—specifically whatever is laid out in the employee handbook, or just... talk to them openly, provided there isn't a direct conflict of interest...
just make sure you frame it as a little side project that won't interfere with your day job and doesn't create any friction with your current role.

Arthur Rodriguez18 said:Thank you for the information! So, there is truly no way for me to sell goods that I produce myself through a sole proprietorship without passing an exam or having a business degree? I was actually planning on wholesale. It seems unfair that a corporation is my only real option!

Retailers can actually be legal entities or individuals registered under manufacturing if they are selling their own products at retail—but there's a catch. The physical space where you sell has to meet all the MIT standards for that type of commerce. Basically, you don't need to hire a specialist or jump straight into an LLC, but you still run into that initial hurdle: registering as a manufacturer and passing the required certification exams.

hey there,

I was wondering if it’s actually feasible to run a sole proprietorship where the only workers are students hired through a campus employment agency. I guess the idea is that since they're just temporary student help, I wouldn't be responsible for paying any self-employment taxes or social security on myself, and I'm basically just giving them some gigs to complete their tasks and then we're done. Is that even legally possible under US tax laws?

ne

I’ve got another question for the group... I’m looking to open a small business back in my hometown—where I actually reside—but there's a bit of a logistical headache because I work in a completely different city during the week. Since I can really only make it back home on the weekends, I won't be able to just pop into a government office during business hours to register everything. Is it actually possible for me to grant power of attorney to my mother, my dad, a brother, or even a cousin to handle the paperwork on my behalf?

So, I want to launch an online store—basically e-commerce—but do I actually need a formal business degree to pull this off, or can I just wing it with whatever college major I have? It’s not like you specifically need an economics degree, right?
Does anyone know where to find the updated list of qualifying activities? I've been searching, but all I keep finding is some outdated registry from the mid-90s. From what I gather, things were overhauled a few years back.

Help!

I’m looking to set up a little souvenir stand on my own property, but I have zero clue where to start with all this paperwork.

What kind of permits am I gonna need, and who do I actually have to talk to to get everything legal?

Tnx 😉

crimsonhawk15 said:Help!

I’m looking to set up a little souvenir stand on my own property, but I have zero clue where to start with all this paperwork.

What kind of permits am I gonna need, and who do I actually have to talk to to get everything legal?

Tnx 😉

Your best bet is to head over to the Department of Commerce or maybe check in with the U.S. Chamber of Commerce. If you can't make it in person, just give Expedia a call and see what they suggest.

I got an inquiry today, but I couldn't find anything relevant in the legal code, so if anyone has some personal experience here...

Basically, this guy wants to start a small business renting out musical instruments and computer gear (plus database management, hardware consulting, and software services)...

Now, regarding the stuff in the parentheses, I did find that those services can be performed out of a residential space...

But I haven't found anything clarifying whether rental services are also allowed if there isn't a dedicated commercial storefront (specifically for storing all the rental instruments)...

The thing is, he lives in an apartment building and doesn't have the option to lease a separate office at his primary business address, and frankly, the math just doesn't work for him to pay rent on a space he won't actually occupy or use for daily operations...

Does anyone know if the regulations mandate having a specific warehouse or storage facility for this kind of business?

So, I’m finally getting ready to launch my own little retail business—super exciting!—but first, I have to pass this certification exam for retail assistants.
Has anyone here actually gone through the certification process for a retail associate role??
It’s been years since I was last sitting in a classroom setting, so I’m feeling a little jittery about it—is the exam actually tough? From what I’ve been reading, there’s some kind of practical component too... how does that part even work??
I would seriously appreciate any insight you guys can give me!!