5 Tips for Starting Your Own E-Business

Running your own internet-based business from the comfort of your home is a dream shared by millions of would-be entrepreneurs around the world. Making that dream a reality is achievable if you have a solid understanding of what you are getting yourself into. The following are some tips that can help you avoid some of the pitfalls that prevent many small business owners from reaching their goals

                                               Write Out Your Plan

Grab a notebook and a pen and physically write out the goals you are seeking to accomplish. This is not your 'business plan', it is simply your ideas for your business model on paper. You may find yourself altering or adding to them once you see them in black and white.

 Know Your Market Audience

I believe in the idiom: 'sell what sells', but if you are middle-aged and you are selling PC gaming accessories to young adults, you need to stay on top of the latest industry news. Visiting online forums and reading relevant publications are a great way to keep yourself informed

File Your Corporate Papers

Whether you file as a sole proprietorship, LLC, or other corporation, once you have a solid idea for your business model, it is time to make it official. First, file for an EIN (Employer Identification Number) with the IRS. This is free and only takes about five minutes on the IRS.gov website.

You then want to file your paperwork with the state your business resides in. Contrary to popular belief, none of this requires a lawyer. Your local state website will have all the necessary information regarding filings for your business including: paperwork, costs/fees, and business name availability. You will need to print out the paperwork and mail a check to your state capital. You should receive your official business papers within 3-6 weeks.

Resale Certificate

Once you have established your business and legalized it with your state, you can apply for a resale certificate. The resale certificate serves two purposes: 1) It shows wholesalers that you are a legitimate business and 2) protects your customers from having to pay sales tax while doing business on the internet. (Note: customers purchasing goods from you in the same state your business is located in are subject to that state's sales tax, if any).

Taxes

The dreaded tax question always rears its ugly head when it comes to the subject of a new company. Unfortunately taxes are unavoidable. Whether you use an accountant or file your taxes yourself, keeping excellent records of any transactions that involve your business is the best way to not only estimate what you may owe at the end of the year, but also avoid any penalties if you get audited. Print out all of your expenditures, sales records, and costs every month and file them separately. Make copies of your receipts, but save the originals as well. Tax laws are constantly changing, so keep up to date with any new regulations that may affect your business.

For more tips and strategies to create your own successful home-based business check out my website: http://www.wheretobuywholesaleproducts.com

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