When starting your sewing business, you'll need to choose a business entity. While you could operate as a sole proprietorship, it might be wise to consider forming an LLC (Limited Liability Company) or an S corporation. These entities provide personal liability protection, keeping your personal assets safe from any business debts or lawsuits. Plus, they make you sound super official and important!
To legally operate your sewing business, you'll likely need to obtain various licenses and registrations. These may include:
Think of these licenses as your business's official badges of honor!
If you plan on using a name other than your own for your sewing business, you'll need to register your "doing business as" (DBA) name. This ensures that no one else can swoop in and steal your clever business name. After all, you wouldn't want someone else taking credit for your "Sew Fabulous Creations," would you?
Depending on your location and the specific nature of your sewing business, you might need additional permits. For example:
As a business owner, you'll need to register for various taxes, such as income tax and sales tax. These registrations ensure that you're contributing your fair share to the community (and avoiding any unwanted visits from the tax collector). Just remember, paying taxes is a small price to pay for the joy of creating beautiful things for others!
First decide on a business structure Sewing Crafts as a Sole Proprietor, LLC/Corp, or Partnership.
Selling/Leasing or if wanting to buy or sell Sewing Crafts merchandise, food, equipment requires a Seller's Permit.
All Sewing Crafts Businesses Using a DBA doing business as name need a DBA Fictitious Business Name
Hiring Sewing Crafts Workers Requires a Federal EIN and a State Tax Number EIN
All Selling Online Businesses (Including Web based, Online, Websites, Home or eBay Businesses) that use a trade business name, need a(n) Cass County DBA Business Name Registration
Retailers / Wholesalers, (Including Web based, Online, Websites, Home or eBay Businesses) Need a(n) ND Sellers Permit (A.K.A state id, wholesale, resale, reseller certificate).
Employers (Including Web based, Online, Websites, Home or eBay Businesses) Need a ND Federal Tax Id Number and a(n) ND State Employer Tax Number
Instead of filing a fictitious business name DBA Filing in Casselton, Incorporate in ND or form a(n) ND LLC
Casselton Example:
FAQs:
1. Do you have a sense of what business you would like to start?
2. Home occupation permit vs Business License - What is the difference?
3. Another investor partner will be part owner of this business.
4. When do I need to get a business license? In what order do I get tax IDs and licenses?
5. Can I use any name to file a business license or do I have to use a business name?
6. When Should I File a DBA Doing Business As certificate?
7. Where should I go get a business license and regiser my business?
A: If you have a passion for being in your own business but do not know what business to start
A: The business license is required for all businesses. The home occupation permit is required when you do business from home but you may also need a business license in addition to a home occupation permit. That is the difference.
A: You could get away without filing a dba if you used your name to do business but because you have a partner you will need both a dba and a business tax id number.
A: You need it immediately after or before you start a business. There is no order of getting licenses. You need to get them as soon as possible.
A: Almost any name can be filed as a Doing Business As but not a corporate name with a suffix such as INC or LLC because if you are not a corporation or LLC you cannot use these name to pretend you are one.
A: You need to register an assumed fictitious business name within 30 days of starting your business.
A: Where to file a business license depends on the business state. Some you need to file at the state level others at the county level and yet others at the city level of government.