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 Expert
Posts: 2128
  
| Does anyone here own a store/sell retail merchandise? I have been bouncing around the idea of selling jewerly and accessories out of my home, online, and at rodeos/events. What all will I need to get started? An LLC (In Louisiana), a tax ID number, what else? Any insight is greatly appreciated. | |
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 Elite Veteran
Posts: 964
Location: Alberta, Canada | I just opened a small tack/supplement shop that is based out of home... but I am in Canada so requirements aren't the same. One thing I have found that has made my life super easy is Freshbooks. I recommend taking a look! I can invoice and manage my business from my cell phone! I find it easier to navigate than paypal, although I do have a business paypal account for those who need to pay credit card. | |
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 Expert
Posts: 3815
Location: The best kept secret in TX | All I can say is be sure you charge tax to anyone who buys from you in Louisiana and be sure you pay your taxes quarterly. If you end up buying wholesale or letting people use ag numbers for anything DOCUMENT EVERYTHING.
The IRS loves to take every penny you have earned if you don't keep up with taxes. If you ship to someone in LA you will still need to charge tax. You will need to charge tax on the total AFTER the shipping cost is added in as well.
Be sure you don't show a profit for your business at least for the first year or two. Show that you put all "profit" back into the business. Whether it be spent on supplies, renting a storage unit, building a storage unit, etc. Keep a filing cabinet for receipts. Keep them seperated into quarters, then months, then by date, and then by supplies, expenses, etc. Be sure you print off a copy of receipts from transactions as well. I found it easier to make an excel sapread sheet of people who have bought from me. I list name of customer, date, purchase amount total, tax charged if any, shipping cost to me, shipping charged, and cost of the item. I then do the math and find my profit and list it on the Excel sheet. I print this out quarterly and bring it with the paperwork and receipts from every transaction listed to my CPA.
Keep in mind that PayPal, squarespace, etc all charge fees to use their products. Decide how much you want to make for each item, add in the percentage, and then charge tax. For example, a customer buys a necklace you want $20 total for. In order to make that $20 you will need to figure how many dollars PayPal will take for the transaction. (2.9% + $0.30 per transaction.) If you charge only $20 for the necklace before tax, you get $19.12. PayPal takes $.080. BUT If you charge $20.91, PayPal takes $0.91, leaving you with $20 for the necklace. ALWAYS update PayPal with thte tracking number once you recieve it. Always keep a copy of the tracking information in your filing cabinet.
If you use your cell phone and computer for posts or to sell your items those are a write off at the end of the year. Keep receipts so that you can prove you work from home. You can write off buying the desk and chair even. But again, be carefull with showing profits. Keep up with your paperwork. Keep names, addresses, etc of past clients in case you need the information.
Keep a notebook and make notes of each transaction. For example if someone was hard to work with, note it. Note why she or he was angry so that maybe net time when they call you can reasure them it won't happen again. Customer service is everything.
Register your business as an LLC, it will be less of a headache in the long run.
Keep up with paperwork and organize. Always spend the extra 5 minutes to file correctly so that you can easily send all your tax information at the end of the quarter to your CPA quickly and efficiently. Some CPAs charge extra to dig through receipts and try and figure out what all everything is. It takes 5minutes to attach it to a piece of notebook paper explaining what the purchase was. I would use a private CPA for the first few years so that you don't file incorectly. If you ever get audited your CPA has you covered. Spend the extra time and money to get things done correctly. 
Don't be afraid to "over price" your items. Decide what you want to pay yourself per hour of work. Say it's $10. Then determine how long it takes to make an item. Say 2.5 hours for a necklace. Round up to 3 hours. That's $30. Say supplies cost you $15. Your necklace is at $45. Add in a sale or a 10% off coupon for returning customers and round up to $50-$60 per necklace. This allows you to put your items on sale while still making money and putting money back into your business.
Good luck. 
Edited by IRunOnFaith 2017-04-03 2:42 PM
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Elite Veteran
Posts: 964
Location: Alberta, Canada | IRunOnFaith - 2017-04-03 12:37 PM
All I can say is be sure you charge tax to anyone who buys from you in Louisiana and be sure you pay your taxes quarterly. If you end up buying wholesale or letting people use ag numbers for anything DOCUMENT EVERYTHING.
 The IRS loves to take every penny you have earned if you don't keep up with taxes. If you ship to someone in LA you will still need to charge tax. You will need to charge tax on the total AFTER the shipping cost is added in as well. Â
Be sure you don't show a profit for your business at least for the first year or two.  Show that you put all "profit" back into the business. Whether it be spent on supplies, renting a storage unit, building a storage unit, etc.  Keep a filing cabinet for receipts. Keep them seperated into quarters, then months, then by date, and then by supplies, expenses, etc. Be sure you print off a copy of receipts from transactions as well. I found it easier to make an excel sapread sheet of people who have bought from me. I list name of customer, date, purchase amount total, tax charged if any, shipping cost to me, shipping charged, and cost of the item. I then do the math and find my profit and list it on the Excel sheet. I print this out quarterly and bring it with the paperwork and receipts from every transaction listed to my CPA.Â
Keep in mind that PayPal, squarespace, etc all charge fees to use their products. Decide how much you want to make for each item, add in the percentage, and then charge tax. For example, a customer buys a necklace you want $20 total for. In order to make that $20 you will need to figure how many dollars PayPal will take for the transaction. (2.9% + $0.30 per transaction.) If you charge only $20 for the necklace before tax, you get $19.12. PayPal takes $.080. BUT If you charge $20.91, PayPal takes $0.91, leaving you with $20 for the necklace. ALWAYS update PayPal with thte tracking number once you recieve it. Always keep a copy of the tracking information in your filing cabinet.Â
If you use your cell phone and computer for posts or to sell your items those are a write off at the end of the year. Keep receipts so that you can prove you work from home. You can write off buying the desk and chair even. Â Â But again, be carefull with showing profits. Â Â Keep up with your paperwork. Keep names, addresses, etc of past clients in case you need the information.Â
Keep a notebook and make notes of each transaction. For example if someone was hard to work with, note it. Note why she or he was angry so that maybe net time when they call you can reasure them it won't happen again. Customer service is everything.Â
Register your business as an LLC, it will be less of a headache in the long run.Â
Keep up with paperwork and organize. Always spend the extra 5 minutes to file correctly so that you can easily send all your tax information at the end of the quarter to your CPA quickly and efficiently. Some CPAs charge extra to dig through receipts and try and figure out what all everything is. It takes 5minutes to attach it to a piece of notebook paper explaining what the purchase was. I would use a private CPA for the first few years so that you don't file incorectly. If you ever get audited your CPA has you covered. Spend the extra time and money to get things done correctly. Don't be afraid to "over price" your items. Decide what you want to pay yourself per hour of work. Say it's $10. Then determine how long it takes to make an item. Say 2.5 hours for a necklace. Round up to 3 hours. That's $30. Â Say supplies cost you $15. Your necklace is at $45. Add in a sale or a 10% off coupon for returning customers and round up to $50-$60 per necklace. This allows you to put your items on sale while still making money and putting money back into your business.Â
Good luck.Â
Would you happen to know if using your cell phone for posts/running the company is also the same deal in Canada???
Great info!!! | |
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Expert
Posts: 3815
Location: The best kept secret in TX | jschipper - 2017-04-03 2:42 PM IRunOnFaith - 2017-04-03 12:37 PM All I can say is be sure you charge tax to anyone who buys from you in Louisiana and be sure you pay your taxes quarterly. If you end up buying wholesale or letting people use ag numbers for anything DOCUMENT EVERYTHING.
The IRS loves to take every penny you have earned if you don't keep up with taxes. If you ship to someone in LA you will still need to charge tax. You will need to charge tax on the total AFTER the shipping cost is added in as well.
Be sure you don't show a profit for your business at least for the first year or two. Show that you put all "profit" back into the business. Whether it be spent on supplies, renting a storage unit, building a storage unit, etc. Keep a filing cabinet for receipts. Keep them seperated into quarters, then months, then by date, and then by supplies, expenses, etc. Be sure you print off a copy of receipts from transactions as well. I found it easier to make an excel sapread sheet of people who have bought from me. I list name of customer, date, purchase amount total, tax charged if any, shipping cost to me, shipping charged, and cost of the item. I then do the math and find my profit and list it on the Excel sheet. I print this out quarterly and bring it with the paperwork and receipts from every transaction listed to my CPA.
Keep in mind that PayPal, squarespace, etc all charge fees to use their products. Decide how much you want to make for each item, add in the percentage, and then charge tax. For example, a customer buys a necklace you want $20 total for. In order to make that $20 you will need to figure how many dollars PayPal will take for the transaction. (2.9% + $0.30 per transaction.) If you charge only $20 for the necklace before tax, you get $19.12. PayPal takes $.080. BUT If you charge $20.91, PayPal takes $0.91, leaving you with $20 for the necklace. ALWAYS update PayPal with thte tracking number once you recieve it. Always keep a copy of the tracking information in your filing cabinet.
If you use your cell phone and computer for posts or to sell your items those are a write off at the end of the year. Keep receipts so that you can prove you work from home. You can write off buying the desk and chair even. But again, be carefull with showing profits. Keep up with your paperwork. Keep names, addresses, etc of past clients in case you need the information.
Keep a notebook and make notes of each transaction. For example if someone was hard to work with, note it. Note why she or he was angry so that maybe net time when they call you can reasure them it won't happen again. Customer service is everything.
Register your business as an LLC, it will be less of a headache in the long run.
Keep up with paperwork and organize. Always spend the extra 5 minutes to file correctly so that you can easily send all your tax information at the end of the quarter to your CPA quickly and efficiently. Some CPAs charge extra to dig through receipts and try and figure out what all everything is. It takes 5minutes to attach it to a piece of notebook paper explaining what the purchase was. I would use a private CPA for the first few years so that you don't file incorectly. If you ever get audited your CPA has you covered. Spend the extra time and money to get things done correctly.
Don't be afraid to "over price" your items. Decide what you want to pay yourself per hour of work. Say it's $10. Then determine how long it takes to make an item. Say 2.5 hours for a necklace. Round up to 3 hours. That's $30. Say supplies cost you $15. Your necklace is at $45. Add in a sale or a 10% off coupon for returning customers and round up to $50-$60 per necklace. This allows you to put your items on sale while still making money and putting money back into your business.
Good luck. Would you happen to know if using your cell phone for posts/running the company is also the same deal in Canada??? Great info!!!
I have no idea if it pertains to Canada. My CPA told me when I first started working at home that I could write it off. I write off my cell phone bill, my internet bill, and if I buy a new item for my office like a desk, chair, or new phone/computer I get to write those off too.
Sometimes the IRS says no way lol but other times I get to write the full amount off.
I would suggest talking with a CPA to know your options. | |
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Expert
Posts: 2128
| IRunOnFaith - 2017-04-03 2:37 PM All I can say is be sure you charge tax to anyone who buys from you in Louisiana and be sure you pay your taxes quarterly. If you end up buying wholesale or letting people use ag numbers for anything DOCUMENT EVERYTHING.
The IRS loves to take every penny you have earned if you don't keep up with taxes. If you ship to someone in LA you will still need to charge tax. You will need to charge tax on the total AFTER the shipping cost is added in as well.
Be sure you don't show a profit for your business at least for the first year or two. Show that you put all "profit" back into the business. Whether it be spent on supplies, renting a storage unit, building a storage unit, etc. Keep a filing cabinet for receipts. Keep them seperated into quarters, then months, then by date, and then by supplies, expenses, etc. Be sure you print off a copy of receipts from transactions as well. I found it easier to make an excel sapread sheet of people who have bought from me. I list name of customer, date, purchase amount total, tax charged if any, shipping cost to me, shipping charged, and cost of the item. I then do the math and find my profit and list it on the Excel sheet. I print this out quarterly and bring it with the paperwork and receipts from every transaction listed to my CPA.
Keep in mind that PayPal, squarespace, etc all charge fees to use their products. Decide how much you want to make for each item, add in the percentage, and then charge tax. For example, a customer buys a necklace you want $20 total for. In order to make that $20 you will need to figure how many dollars PayPal will take for the transaction. (2.9% + $0.30 per transaction.) If you charge only $20 for the necklace before tax, you get $19.12. PayPal takes $.080. BUT If you charge $20.91, PayPal takes $0.91, leaving you with $20 for the necklace. ALWAYS update PayPal with thte tracking number once you recieve it. Always keep a copy of the tracking information in your filing cabinet.
If you use your cell phone and computer for posts or to sell your items those are a write off at the end of the year. Keep receipts so that you can prove you work from home. You can write off buying the desk and chair even. But again, be carefull with showing profits. Keep up with your paperwork. Keep names, addresses, etc of past clients in case you need the information.
Keep a notebook and make notes of each transaction. For example if someone was hard to work with, note it. Note why she or he was angry so that maybe net time when they call you can reasure them it won't happen again. Customer service is everything.
Register your business as an LLC, it will be less of a headache in the long run.
Keep up with paperwork and organize. Always spend the extra 5 minutes to file correctly so that you can easily send all your tax information at the end of the quarter to your CPA quickly and efficiently. Some CPAs charge extra to dig through receipts and try and figure out what all everything is. It takes 5minutes to attach it to a piece of notebook paper explaining what the purchase was. I would use a private CPA for the first few years so that you don't file incorectly. If you ever get audited your CPA has you covered. Spend the extra time and money to get things done correctly.
Don't be afraid to "over price" your items. Decide what you want to pay yourself per hour of work. Say it's $10. Then determine how long it takes to make an item. Say 2.5 hours for a necklace. Round up to 3 hours. That's $30. Say supplies cost you $15. Your necklace is at $45. Add in a sale or a 10% off coupon for returning customers and round up to $50-$60 per necklace. This allows you to put your items on sale while still making money and putting money back into your business.
Good luck.
You know whats going on! Thank you for taking the time to give me all of that great info! | |
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Expert
Posts: 3815
Location: The best kept secret in TX | scwebster - 2017-04-03 3:19 PM IRunOnFaith - 2017-04-03 2:37 PM All I can say is be sure you charge tax to anyone who buys from you in Louisiana and be sure you pay your taxes quarterly. If you end up buying wholesale or letting people use ag numbers for anything DOCUMENT EVERYTHING.
The IRS loves to take every penny you have earned if you don't keep up with taxes. If you ship to someone in LA you will still need to charge tax. You will need to charge tax on the total AFTER the shipping cost is added in as well.
Be sure you don't show a profit for your business at least for the first year or two. Show that you put all "profit" back into the business. Whether it be spent on supplies, renting a storage unit, building a storage unit, etc. Keep a filing cabinet for receipts. Keep them seperated into quarters, then months, then by date, and then by supplies, expenses, etc. Be sure you print off a copy of receipts from transactions as well. I found it easier to make an excel sapread sheet of people who have bought from me. I list name of customer, date, purchase amount total, tax charged if any, shipping cost to me, shipping charged, and cost of the item. I then do the math and find my profit and list it on the Excel sheet. I print this out quarterly and bring it with the paperwork and receipts from every transaction listed to my CPA.
Keep in mind that PayPal, squarespace, etc all charge fees to use their products. Decide how much you want to make for each item, add in the percentage, and then charge tax. For example, a customer buys a necklace you want $20 total for. In order to make that $20 you will need to figure how many dollars PayPal will take for the transaction. (2.9% + $0.30 per transaction.) If you charge only $20 for the necklace before tax, you get $19.12. PayPal takes $.080. BUT If you charge $20.91, PayPal takes $0.91, leaving you with $20 for the necklace. ALWAYS update PayPal with thte tracking number once you recieve it. Always keep a copy of the tracking information in your filing cabinet.
If you use your cell phone and computer for posts or to sell your items those are a write off at the end of the year. Keep receipts so that you can prove you work from home. You can write off buying the desk and chair even. But again, be carefull with showing profits. Keep up with your paperwork. Keep names, addresses, etc of past clients in case you need the information.
Keep a notebook and make notes of each transaction. For example if someone was hard to work with, note it. Note why she or he was angry so that maybe net time when they call you can reasure them it won't happen again. Customer service is everything.
Register your business as an LLC, it will be less of a headache in the long run.
Keep up with paperwork and organize. Always spend the extra 5 minutes to file correctly so that you can easily send all your tax information at the end of the quarter to your CPA quickly and efficiently. Some CPAs charge extra to dig through receipts and try and figure out what all everything is. It takes 5minutes to attach it to a piece of notebook paper explaining what the purchase was. I would use a private CPA for the first few years so that you don't file incorectly. If you ever get audited your CPA has you covered. Spend the extra time and money to get things done correctly.
Don't be afraid to "over price" your items. Decide what you want to pay yourself per hour of work. Say it's $10. Then determine how long it takes to make an item. Say 2.5 hours for a necklace. Round up to 3 hours. That's $30. Say supplies cost you $15. Your necklace is at $45. Add in a sale or a 10% off coupon for returning customers and round up to $50-$60 per necklace. This allows you to put your items on sale while still making money and putting money back into your business.
Good luck.
Need anything or have a question just PM me. | |
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 Extreme Veteran
Posts: 452
Location: Alberta | jschipper - 2017-04-03 1:42 PM
IRunOnFaith - 2017-04-03 12:37 PM
All I can say is be sure you charge tax to anyone who buys from you in Louisiana and be sure you pay your taxes quarterly. If you end up buying wholesale or letting people use ag numbers for anything DOCUMENT EVERYTHING.
 The IRS loves to take every penny you have earned if you don't keep up with taxes. If you ship to someone in LA you will still need to charge tax. You will need to charge tax on the total AFTER the shipping cost is added in as well. Â
Be sure you don't show a profit for your business at least for the first year or two.  Show that you put all "profit" back into the business. Whether it be spent on supplies, renting a storage unit, building a storage unit, etc.  Keep a filing cabinet for receipts. Keep them seperated into quarters, then months, then by date, and then by supplies, expenses, etc. Be sure you print off a copy of receipts from transactions as well. I found it easier to make an excel sapread sheet of people who have bought from me. I list name of customer, date, purchase amount total, tax charged if any, shipping cost to me, shipping charged, and cost of the item. I then do the math and find my profit and list it on the Excel sheet. I print this out quarterly and bring it with the paperwork and receipts from every transaction listed to my CPA.Â
Keep in mind that PayPal, squarespace, etc all charge fees to use their products. Decide how much you want to make for each item, add in the percentage, and then charge tax. For example, a customer buys a necklace you want $20 total for. In order to make that $20 you will need to figure how many dollars PayPal will take for the transaction. (2.9% + $0.30 per transaction.) If you charge only $20 for the necklace before tax, you get $19.12. PayPal takes $.080. BUT If you charge $20.91, PayPal takes $0.91, leaving you with $20 for the necklace. ALWAYS update PayPal with thte tracking number once you recieve it. Always keep a copy of the tracking information in your filing cabinet.Â
If you use your cell phone and computer for posts or to sell your items those are a write off at the end of the year. Keep receipts so that you can prove you work from home. You can write off buying the desk and chair even. Â Â But again, be carefull with showing profits. Â Â Keep up with your paperwork. Keep names, addresses, etc of past clients in case you need the information.Â
Keep a notebook and make notes of each transaction. For example if someone was hard to work with, note it. Note why she or he was angry so that maybe net time when they call you can reasure them it won't happen again. Customer service is everything.Â
Register your business as an LLC, it will be less of a headache in the long run.Â
Keep up with paperwork and organize. Always spend the extra 5 minutes to file correctly so that you can easily send all your tax information at the end of the quarter to your CPA quickly and efficiently. Some CPAs charge extra to dig through receipts and try and figure out what all everything is. It takes 5minutes to attach it to a piece of notebook paper explaining what the purchase was. I would use a private CPA for the first few years so that you don't file incorectly. If you ever get audited your CPA has you covered. Spend the extra time and money to get things done correctly. Don't be afraid to "over price" your items. Decide what you want to pay yourself per hour of work. Say it's $10. Then determine how long it takes to make an item. Say 2.5 hours for a necklace. Round up to 3 hours. That's $30. Â Say supplies cost you $15. Your necklace is at $45. Add in a sale or a 10% off coupon for returning customers and round up to $50-$60 per necklace. This allows you to put your items on sale while still making money and putting money back into your business.Â
Good luck.Â
Would you happen to know if using your cell phone for posts/running the company is also the same deal in Canada???
Great info!!!
It works the same in Canada, if you work from home you can write off a portion of all your utility bills as well. You just tell your accountant what square footage of your home you use for your business and they will do the math to figure out what percentage can be wrote off (power, gas, internet, phone, insurance etc.) BUT you have to work a certain number of hours from home per week to "qualify", can't remember the exact number right now.
Don't forget to include any office expenses as well (laptop, printer, paper, ink cartridges etc). | |
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 My Heart Be Happy
Posts: 9159
Location: Arkansas | scwebster - 2017-04-03 2:12 PM
Does anyone here own a store/sell retail merchandise? I have been bouncing around the idea of selling jewerly and accessories out of my home, online, and at rodeos/events. What all will I need to get started? An LLC (In Louisiana), a tax ID number, what else?  Any insight is greatly appreciated. Â
Like IRunOnFaith said, keep up with anything and everything that costs you money pertaining to the business. As an accountant, I'd rather my clients bring me something that's not deductible and let me decide rather than their missing the expense because they thought it wasn't deductible. Also, talk to your accountant or lawyer about an LLC because they can be set up as a stand alone corporation that files its own return or as an entity that will flow to your personal return. They can advise you what's better for your situation. Hope all works out for you, and if you have any questions, please pm me and I'll help if I can! | |
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Expert
Posts: 2128
| Chandler's Mom - 2017-04-03 11:40 PM scwebster - 2017-04-03 2:12 PM Does anyone here own a store/sell retail merchandise? I have been bouncing around the idea of selling jewerly and accessories out of my home, online, and at rodeos/events. What all will I need to get started? An LLC (In Louisiana), a tax ID number, what else? Any insight is greatly appreciated. Like IRunOnFaith said, keep up with anything and everything that costs you money pertaining to the business. As an accountant, I'd rather my clients bring me something that's not deductible and let me decide rather than their missing the expense because they thought it wasn't deductible. Also, talk to your accountant or lawyer about an LLC because they can be set up as a stand alone corporation that files its own return or as an entity that will flow to your personal return. They can advise you what's better for your situation. Hope all works out for you, and if you have any questions, please pm me and I'll help if I can!
Thank you so much for the information! and I will def PM you :) This is why I love this board :) | |
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My Heart Be Happy
Posts: 9159
Location: Arkansas | scwebster - 2017-04-04 8:11 AM
Chandler's Mom - 2017-04-03 11:40 PM scwebster - 2017-04-03 2:12 PM Does anyone here own a store/sell retail merchandise? I have been bouncing around the idea of selling jewerly and accessories out of my home, online, and at rodeos/events. What all will I need to get started? An LLC (In Louisiana), a tax ID number, what else?  Any insight is greatly appreciated.  Like IRunOnFaith said, keep up with anything and everything that costs you money pertaining to the business. As an accountant, I'd rather my clients bring me something that's not deductible and let me decide rather than their missing the expense because they thought it wasn't deductible. Also, talk to your accountant or lawyer about an LLC because they can be set up as a stand alone corporation that files its own return or as an entity that will flow to your personal return. They can advise you what's better for your situation. Hope all works out for you, and if you have any questions, please pm me and I'll help if I can!
You are so welcome | |
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Folks on-line