River jigin Posted May 17, 2008 Report Share Posted May 17, 2008 Hi, I am starting to get a website made to sell my jigs and some softplastics and was wondering what I have to do to become a legit business and not get in trouble and fined. I have looked into it and I am a little lost. I tried to register online to be able to do texas taxes but said I had to be 18 and I am only 17 so that might hold me back. Maybe my dad has to register for me or something. I dont know if I have to register my business or what. Any advice would be helpfull. Thanks, Vince Quote Link to comment Share on other sites More sharing options...
ghost Posted May 17, 2008 Report Share Posted May 17, 2008 First thing I would do is go to the State of Texas website. There is always endless information on the state website about starting or running a business. Second step would be to call the State office with any questions that you don't get answered from their website. Then give the IRS a call to find out what you need to do with them. That will get you started. Quote Link to comment Share on other sites More sharing options...
JSC Posted May 17, 2008 Report Share Posted May 17, 2008 Check Earlier Posts ... several threads related to this very subject. Search IRS or Excise Taxes ... For State information the advice given is what I would do. Good Luck JSC Quote Link to comment Share on other sites More sharing options...
King Bait Co. Posted May 17, 2008 Report Share Posted May 17, 2008 (edited) Your best bet is and I did this. Call a accountant they can do all this it cost me $20. You may not even need a state tax number or federal. Example do you pay taxes when you buy something on line if its out of state no. In state sales you would need a stste tax id number. So call an accountant with your dads help. I can tell what I did and others can do the same but it could be entirly different where you live. To sum it up call the right people that do this every day an accountant. That way your eighteenth birthday isnt' spent in federal lock up blaming me because I told you something wrong. Edited May 17, 2008 by King Bait Co. Quote Link to comment Share on other sites More sharing options...
rodtrader Posted May 20, 2008 Report Share Posted May 20, 2008 (edited) The Federal Sport Fishing Excise Tax must be collected on any sale, whether it be an out of state or in-state sale. If you are manufacturing any piece of tackle used in the catching of game fish, or adding two or more components to an existing piece of tackle YOU ARE RESPONSIBLE for this tax. You need a business license from your state and a Federal Tax ID. The IRS has been cracking down due to multiple complaints from manufacturers who do legally and rightly pay the tax. Believe me if you are making tackle and no paying the tax (and this is found out by other guys who do pay the tax) you will be turned in. Collecting the tax and filling out tax forms is not fun. Plus, if someone is not paying the tax that extra money goes to your bottom line, which it doesn't to someone paying the tax. The mantra soon becomes "If I have to pay the tax, then you are too". American Sportfishing Association This is why you need to contact a professional not take advice from anonymous guys on a website. Feel free to contact me if you need anymore information or have other questions. matt Edited May 20, 2008 by rodtrader speeling Quote Link to comment Share on other sites More sharing options...
Ogajiga Posted May 20, 2008 Report Share Posted May 20, 2008 (edited) Yes, the IRS is serious about FET enforcement - although only a one person business I've already had 2 onsite visits in 10 years by IRS staff who flew to the Big Island from their Oahu home office. The reason for targeting small time recreational tackle businesses for a hefty 10% FET in addition to income tax eludes me, especially when I read that big commercial fishing operations that are destroying habitat and wiping out stocks are subsidized with fed $. Those of us selling retail can't just add on 10% tax to customers, and we end up paying the taxes for our supplies manufacturers. However, its NOMB if someone chooses to risk evading this tax. Edited May 20, 2008 by hawnjigs Quote Link to comment Share on other sites More sharing options...
King Bait Co. Posted May 20, 2008 Report Share Posted May 20, 2008 I think us anonymos guys said to contact someone who knows how to do this. So if that advise is bad I am sorry for saying to conatct a professional tax person. So what makes you so unanonymos to have a seventeen year old contact a complete stranger for tax advise. When I clearly stated to have his dad help him. Because in most states he is still a minnor. I do pay taxes as I asume most of us here do. If your hurt'en a large company's like Berkely or Strike King profits. I would bet that guy has employes to keep up with them has a pretty good book keeper. Just because one tells on others doesn't make them honest. Quote Link to comment Share on other sites More sharing options...
JSC Posted May 20, 2008 Report Share Posted May 20, 2008 """This is why you need to contact a professional not take advice from anonymous guys on a website. Feel free to contact me if you need anymore information or have other questions.""""" I was not going to say any thing about this comment until I thought a little longer about it . I see no where in the past information that did not refer to " CHECKING " EVERY THING OUT !!!! Off my soap box and shut up before I say something .... JSC Quote Link to comment Share on other sites More sharing options...
MTfishingrods Posted May 20, 2008 Report Share Posted May 20, 2008 """This is why you need to contact a professional not take advice from anonymous guys on a website. Feel free to contact me if you need anymore information or have other questions.""""" Sorry but I did get a chuckle out of this one. Quote Link to comment Share on other sites More sharing options...
rodtrader Posted May 21, 2008 Report Share Posted May 21, 2008 """This is why you need to contact a professional not take advice from anonymous guys on a website.Feel free to contact me if you need anymore information or have other questions.""""" Sorry but I did get a chuckle out of this one. OK you got me. Bad wording on my part. My website address is in my link and my email address is available through my profile. I clearly own and operate a successful business and have experience in establishing such. I'm obviously more than just an anonymous screen name with no identifiable credentials. Although I clearly phrased it wrong I was suggesting that the young man should contact competent professional advice and reach out to those who are obviously in the business already, not just anonymous screen names on an internet forum. My apologies for not writing a more clear response. Quote Link to comment Share on other sites More sharing options...
JSC Posted May 21, 2008 Report Share Posted May 21, 2008 Apologies accepted ... JSC Quote Link to comment Share on other sites More sharing options...
BLT Posted May 21, 2008 Report Share Posted May 21, 2008 I make tackle in Pa., but do not sell it in this state, I sell in De. at the beach. Now I am faced with HAVING to get a state retail number because some wholesalers/distributers will not deal with you if you don't. An excise tax number and federal tax number are not good enough with some places. Pa. is even cracking down hard on craft shows and such. If you sell at any show in Pa., (tackle or not) better have the retail #!! Being a small time tackle maker, (around 10,000 rigs a year) I don't think it's that big of a deal keeping records for the 10% tax. Quote Link to comment Share on other sites More sharing options...
JSC Posted May 21, 2008 Report Share Posted May 21, 2008 (Preface this by saying I am a retired Fishing Tackle Distributor Salesman ... aprox 30 + years also Retail/Wholesale Bait & Tackle, Manufacturer in the past and again now of Artificial Lures and Saltwater Rigs .. 10 years Air Force and a lot of other stuff .. After a previous post I don't want to be ANONYMOUS) Regardless to what I say below I STRONGLY suggest that you check with the City, County and State appropriate agencies .... and of course the IRS. (The following applied to Alabama, Florida, Georgia and Mississippi (from what I found from other Salesmen in other than these same states it was the same or some variance)). The first things I HAD to do when opening a NEW RETAIL Account was to see their License and their CITY/ STATE/COUNTY Sales Tax certificate I would either write their number down or get a photo copy ... Whoever is selling to the Retailer HAD TO HAVE this information on record before you could make a sale to them. (Regardless to where you are in the Supply Chain if you are selling to the RETAILER this information had to be on record). FET (Federal Excise Tax) falls on the Manufacturer. AGAIN check with the IRS for clarification of YOUR situation. OK if I understand this right ... You are Manufacturing in one State ... selling RETAIL in another State and You want to do business with Distributors/Wholesalers ?? Again as I said above my first move to be legal would be to get a license, City/County/State Sales Tax Number (most states you only need one for the state you are doing business in as they collect it from the Retailers and send the % back to the County/City) ... CHECK with the IRS to get your FET ID Number as well as to find out EXACTLY how this applies to You (I think that their is a special provision for those selling at retail). Now if You are trying to Sell TO the Distributor/Wholesaler their must be some law in that State that requires this .. I have not heard of such a thing when purchasing from a Manufacturer .... I think I have gone far enough with this BOOK ... I hope I have not confused You as I know this must be about as clear as Mud. CHECK WITH THE AGENCIES THAT ARE APPLICABLE TO YOU otherwise You are risking it all. Belive Me that regarless to the size of the business the same rules apply. Good Luck JSC Quote Link to comment Share on other sites More sharing options...
BLT Posted May 21, 2008 Report Share Posted May 21, 2008 I am considered a manufacturer by the Feds, not a retail business, already checked. Quote Link to comment Share on other sites More sharing options...
King Bait Co. Posted May 21, 2008 Report Share Posted May 21, 2008 JSC I think you summed it all up. I think we have all forgot about river jigin. I hope you make a million your fist year. Just find someone to get all your tax stuff taken care of for you so its done right. Quote Link to comment Share on other sites More sharing options...
JSC Posted May 22, 2008 Report Share Posted May 22, 2008 KBC I too hope "river jigin" makes a bundle ... all I try to make is enough to keep me fishing. JSC Quote Link to comment Share on other sites More sharing options...
River jigin Posted May 24, 2008 Author Report Share Posted May 24, 2008 Hi thanks for all the replies. I have been away from computer cause trying to finish up school. Well I got a IRS EIN and tried to get a texas tax number but couldnt because I wasnt 18. Me and my dad are going to go the tax office that deals with the state to get that fixed up. If I am just selling on the internet do I have to get a business license? If I do where and how do I get one? Do I just get one for the state or what? Thanks, Vince Quote Link to comment Share on other sites More sharing options...
MDC Posted May 24, 2008 Report Share Posted May 24, 2008 Start here Texas Governor Rick Perry - Guide To Starting a Business Quote Link to comment Share on other sites More sharing options...
