| Now that I've sent your head spinning with all the paperwork required to get your eBay business off the ground, let me tell you how to make most of these details go away: Hire someone to do it for you. That's right, when it comes to setting up and managing a small business, there is a definite advantage to hiring professionals to handle all the paperwork and record keeping. Yes, it's an additional cost you'll have to pay, but for most of us it's not only worth it ”it's a necessity. What kinds of professionals am I talking about? Just two: an accountant and an attorney. The attorney is necessary to help you get your business registered and legal, while the accountant is necessary to keep track of your taxes and finances on an ongoing basis. While you might be able to do all this work yourself (or not), a professional is more likely to know what's required, and thus keep you out of any potential hot water. Professionals also do this for a living, so they can do it better and faster than you can. Let the professionals handle all this busy work ”so you can focus your attention on the important job of running your business! | | Learn more about hiring an accountant and setting up your business's accounting in Chapter 6, "Step Four: Set Up a Record-keeping System." | And remember ”all professional fees are tax deductible. The Absolute Minimum When it's time to set up your eBay business, there are certain legal requirements you need to take care of. Keep these points in mind: -
You need to choose an appropriate legal structure for your business ”sole proprietorship, partnership, or corporation. -
You'll need to check with your local government(s) to obtain all necessary permits and licenses. -
You'll also need to obtain a tax license and number, and then collect sales tax on all in-state sales. -
Since you're now self-employed, you'll need to file quarterly estimated taxes on your eBay auction income. -
Fortunately, almost all of these activities are best handled by employing the services of a qualified attorney and accountant. | |