Legal Question in Business Law in Massachusetts
bussiness
I'm planing on selling my crafts in someone else's store in Massachusetts. I pay her monthly rent and all sale profits are mine. She also handles the tax form the customers. Do I still need a permit, license or tax ID number?
3 Answers from Attorneys
Re: bussiness
Technically, you should register your business and pay your own sales taxes. You should obtain a federal emplyer id number, especially if you are going to employee anyone. Also, if you buy products for resale, you will need a sales number so you can avoid paying sales tax on those items.
Any CPA can help you set this up. Also make sure you register the name of your business in the town where you live or where you are going to operate.
Good Luck.
: business
Probably not.
You can use your ss#. As for a license or permit, if you are concerned, contact the town or city in which the business is located.
Re: bussiness
Possibly not. However, if you are doing business under a fictitious name, you will need to file a DBA certificate with your city or town, and you will need to properly account for profits, expenses, and taxes on your own tax return (unless you are operating as an entity). It makes sense to consult with an accountant and an attorney when starting up a business.
(E.g., the accountant can assist with questions involving start up costs, effects of tax elections (such as S-corp status) and the attorney can assist with spotting potential issues such as product liability, copyright, trademark, or patent issues, benefits of entity (corporation or llc) status, etcetera.)
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