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Old 04-10-2012, 10:53 AM   #1
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getting started? license/insurance/etc?

What does one need to do before starting a work at home business? (like, make and sell type). I'm thinking to sell online and also locally at craft fairs.

I know you need a business license.

Do you need approval from somewhere if you are making items intended for use with children? (i remember the lead thing a few years ago)

Would I need to update my homeowners insurance to indicate i'm running a business out of my home? What type of rate increases might i expect to see? (or should i just call and ask). Is that optional? Our homeowners deductible is $5,000...i would not likely have that in inventory/supplies so i wouldn't be making a claim for that. I'm thinking of making blankets and the like....no small parts, and i honestly can't see how one might be injured an sue...but this is america and people do crazy things

I know i've read about Limited Liability Companies (LLC's)- does that apply to WAHM and what type of protection does it offer? I'm assuming one has to apply for that?

How do you work taxes when you sell to someone in another state or international? I know people in your home state must pay taxes on purchases....but with income coming from both in and out of state and potentially international, what separation is needed? Do you just file them separately and when tax time comes, figure it out then?


I know I can't be the only one with these questions. Are any WAHM's able to answer these or provide links to sites with good info? As I find answers, i'll update as well to help everyone

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Old 04-10-2012, 04:00 PM   #2
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Re: getting started? license/insurance/etc?

I would check for specific information here http://sos.georgia.gov/firststop/ for your state (I'm assuming you live in GA), and see if there are any small business organizations nearby that can offer mentoring/assistance. Rules/regs can vary a lot depending on where you live. You will want to check with your homeowner's policy about if they require you to update your coverage and you might want to consult an accountant for detailed tax information. I don't sell anything taxable, but I can tell you that you are only required to collect taxes for in-state sales. Anyone that purchases from out of state or international would be responsible for declaring these purchases on their tax forms (although I highly doubt 99% of the population bothers to do so). I'm in Ohio and I am not registered as a business, I just file the income on my taxes at the end of the year. You will probably have to set up as sole-proprieter or LLC since your goods would be taxable.
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Old 04-10-2012, 05:15 PM   #3
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Re: getting started? license/insurance/etc?

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Originally Posted by pharmmama View Post
I would check for specific information here http://sos.georgia.gov/firststop/ for your state (I'm assuming you live in GA), and see if there are any small business organizations nearby that can offer mentoring/assistance.
thanks I did check out that site and poked around a bit. I got annoyed though when i read about registering a business as a minority (I'm assuming it provides some benefit) and, well, i'm just a plain ole white girl Plus the information I was seeing was more or less for those who buy and resell goods or services, not for those who actually make a product to sell. I'll check it out more later though, i didn't see the mentoring abilities earlier but it was in a link I just followed
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Old 04-14-2012, 05:22 PM   #4
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Re: getting started? license/insurance/etc?

do you need a business license and a retail license (saw mentioned in the other thread).

Does anyone here do craft shows with their goods? How does the business end work with selling face to face vs online only? (obviously you'd be charging taxes for selling in your own state)
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Old 04-28-2012, 07:51 AM   #5
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Re: getting started? license/insurance/etc?

You may not need a business license just yet....I only have a Sellers Certificate which enables me to make a product and sell it online and at craft fairs. It also entitles me to not pay tax on supplies I use to make my product. I'm in CA, but I would think other states are similar. You may have to prepare and file your taxes quarterly as I do, but honestly my whole tax bill was only $1.20 as most of my sales are out of state. Good Luck!
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