Today's question, I want to answer is “Do I need a small business license to teach sewing classes?”
So because you are setting up a small business, the answer is yes. Anytime, no matter what kind of business you're setting up, you want to make sure that you're doing it legally. And the first step to doing that legally is actually getting a small business license.
Usually when you're just starting out, it's okay to start with something called a sole proprietor, instead of an LLC or a Corporation or an S-Corp. There's a lot of different variations and it can be a little mind boggling when you're just starting out.
So years ago when I started my own business, I think I was like 18 years old, that was like 20 years ago, I just went to my town office. I walked in, I told them I wanted to start a small business in my home and I needed a business license.
They just gave me a piece of paper and I filled it out, then I paid maybe a $25 or $50 and I had a business license.
Then I followed through with the next steps of getting a checking account with my business name on it. So now of course, that was a long time ago and things have changed. I think now you can actually do it online. I know years ago when I formed a corporation that did online.
You can go to Google and check out business.gov and see if you can navigate through their website and find out how to apply.
If you're adding an LLC or a corporation, then that adds an extra step. In some cases you'll want to go to a lawyer and figure that out and have that taken care of and then still get your business license.
I just wanted to wrap up here on making sure that you knew the importance of doing this legal. Because you're setting up a small business and you're going to be bringing in money, then you have to be taxed (and so the government wants a piece of that).
So you just want to make sure that you do it all legal so that you don't get like shutdown.
You’ll want to remember to take out taxes and set aside the amount you’ll owe them, whatever the percentage is. It could be 30%, it could be 20%. It just varies depending on how much you make.
The whole point is to take the first step.
Get your business license and make sure that you're in good standing with the government. You're letting them know that you want to collect money and then you're going to pay the taxes.
So that's basically it for this question. I hope that answered your question. All right. Bye!
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Hi, I'm Katrina Marie
I'm excited that you are visiting my BASTE Weekly Blog. BASTE stands for Be a Sewing Teacher Education.