Start off on the right foot

If you you dream of successfully running your business, especially if you want it to become your sole source of income, you need to start it off right. Many people balk at the legalities of owning a business- licenses, taxes, and everything else that keeps you legal. You may be able to avoid these things for awhile, but if you want to succeed you must attend to these things. Below is a list of links to help you sort through what you need to so.

Business license- In the state of Washington it is fairly simple. You fill out the master application, which you can do online, pay a small fee, and you get your state tax license and trade name registration. This differs by state though, but the SBA (small business association) has a handy list for each state here. The only state missing from their list is New Mexico, so here is the link to their license information. the above link will take you to the information and filing instructions for your state. You may also need to register with your city or county. You can visit their websites for information, or pull out the government pages of you phone book and call your city and county clerk. Many times, cities and counties have discounted licenses for small home businesses and micro-enterprises, so even if they have the information on their website, you can save a lot of money by talking to a real person. This is going to cost some money, but it is worth it. For both my state and city license I paid $40, which isn't bad at all.

It is also important to register your trade name before branding yourself. It sucks if you have to change your name after having 200 business cards printed. You can register it on the state level usually when you file for your license. If not, just do a search of "trade name registration ". There is usually a small fee associated with it, in Washington it is $5. To register your trade name on a national level, you will have to apply for a trademark, which you can find more information on here.

Taxes- When you receive your business license, you will begin collecting sales tax. You will get an information packet from the state on when to pay your taxes as well as how much to charge your customers or taxes. I pay my taxes quarterly. You only apply sales tax to customers that reside or purchase from within your home state. The easiest way to always have the money when taxes are due is to deposit them into a separate account just for taxes. That way, you also earn interest on the money until it is time to turn over the states share. You will also pay taxes on your income. Here is a handy calculator to help you plan for these taxes. This will give you an idea of what to expect so you can plan accordingly and save money for it throughout the year as opposed to having to come up with a huge amount all at once.

Sites to answer all your questions-
Small Business Association (sba)- everything you need to start your business.

SCORE- this is an association of retired business people that supply low and no cost classes, help, and mentoring for your small business.

IRS small business center- your one stop for all the information on small business taxes and more.

Also, search your city for more resources. In Spokane we have SNAP, which is a community organization that offers free classes on starting your business, help with writing a business plan and securing funding for your business, as well as a business savings account where they offer you $2 for ever $1 you deposit in it. Your community may have something similar and it is worth looking into.