15 January 2011

Etsy Tips & Tricks #7: Be Legit

Becoming a legitimate business is easier than you'd think!
If you are planning on growing your business and really committed to being a business person, you'll need to be legit. Sure, you can probably get away without filing all the proper paperwork, at first, but why not save yourself some potential headaches by starting off the new year as a legitimate business owner? It's free, fast, and surprisingly easy!

How do you become legit?

First things first, you need to apply for a EIN, or Employer Identification Number, from the IRS. Do you really need an EIN? While a lot of people think that you don't need this number if you aren't going to hire any employees, that's inaccurate: the IRS website says that if you are starting a new business, you need an EIN. You'll need this number later to apply for business retail permits, a business bank account, and for wholesale accounts. While this all sounds quite scary, it's actually a really easy process. The hardest part, I suspect, is remembering to to click the link during the available hours, since the IRS EIN application is only available on certain days and times. I just filled out my application and it took all of five minutes. I printed out the pdf file and now Literary Tease is a legitimate business. Woohoo!

Confused about all this stuff? I hear ya! Check out etsy seller, JJMFinance, for ebooks on all the nitty-gritty financial details about being a seller on Etsy.   Jason says, "I am CPA (Certified Public Accountant) and have worked as an international accountant, not-for-profit accountant, and treasury professional (cash & banks). I also have helped countless small business owners with their financial needs." Jason's positive feedback and the recommendation of a friend convinced me to try his product. 

I purchased the Whole Financial Tamale for $50, which I know is going to pay for itself in no time. It's informative and easy to read/understand. I was feeling really scared about taxes for 2010, since it's the first year that my business actually pulled in profits (I think!) and I'm a lot calmer now that I have Jason's eBooks to guide me through the process. This year will still be scary, but I know that next year will be much smoother because I'll be organized and tracking my expenses all through 2011.


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