Getting a Little Business Going

Updated on April 08, 2011
P.L. asks from Schaumburg, IL
5 answers

I started making soaps,body butters,scrubs, heating pillows and what not.I do gift baskets,etc.I'm in the middle of getting liability insurance and was trying to read somewhat thru the Illinois website to start a business.
So much to read,and sometimes confusing.I don't want an LLC yet.But want to do the right thing and get this going.
Anybody from Illinois and having a small business who is willing to give me some pointers or directs me to websites?
Thank you very much

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S.R.

answers from Chicago on

Hi,
I have a home-based business (information service) and all I needed to do was register with the county, put a one-time ad in the paper announcing my business, and get a tax id/account number from the state for paying sales tax. As for liability, check with your home-owner (or renter) insurance agent. If you don't have customers coming into your home and/or place of business, personal liability may not be an issue (generally I think a rider on your homeowner insurance may cover that, but the agent can tell you more). Product liability insurance may be needed if your products hurt someone in some way (allergies, etc.). You may want to consult with a lawyer for any possible problems, and how to prevent them. I don't know about specific websites.
If you would like to contact me privately, my email address is ____@____.com, and my phone number is ###-###-####.
S. Redfern

1 mom found this helpful
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N.H.

answers from Chicago on

If you just want to be a sole proprietor than all I did was apply for an IBT# from the IL Dept. of Revenue. That number will allow you to purchase wholesale and is the number you will file your sales tax with (you can even use that # at Joanns and Hobby Lobby to exempt you from sales tax). You can file sales tax online on the IL Dept of Revenue.

I think that if you are just testing the water than sole proprietor is ok, but if you think you are really going to move forward with this become an LLC or Corp. #1 for liability purposes #2 if you start making good money you pay alot in taxes as a sole proprietor (self employment tax).

That was all I did. You can file with your county, my accountant said it was not necessary, so I did not.

Keep good records! Keep records of all your expenses, mileage, total sales, tax collected. Beginning and ending inventory for made and raw goods. You will need all that for taxes.

That is really all there is to it. Good Luck!

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P.G.

answers from Dallas on

Check out www.score.org - it's a free resource of business mentors. Also, see if your community college has a small business association type of resource. They are also usually free and can be a huge help.

Once you're ready, check out meetup.com and find some business networking groups in your area. They are a word of mouth referral resource that can be a huge help. Feel free to contact me to chat if you'd like more info.

Good luck!

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A.L.

answers from Chicago on

My husband has a construction (service) business in Illinois. He was as sole proprieter when I met him. He is now an S-Corp. Here is my advice/comments:

I found an accountant that was reasonable that I trust. I've used him for all my guidance. He charged me by the hour at first for consulting, and it was well worth it. He's located in Northbrook. If you're in that area, I can pass on his information.

My husbands business is a service business and does not manufacture. So he (we) do not need to pay sales taxes on the goods he creates. Taxes are already paid by him on the materials he purchases. I unfortunately don't have guidance on how you pay sales taxes on items.

Insurance is critical. There are people out there who would do and try anything. Make sure you are covered. This is why my husband's business was changed to an S-Corp. The business would be sued, but no one can go after personal assets as long as everything shows we treat this as a business. Check your home owners policy, or look to get an additional rider.

My husband ran his business as a sole proprietership and everything was tied to his SSN. I don't think he did anything else. (Schedule C for filing purposes).

My accountant recommended the S Corp and guided us through that process. We registered with Illinois for a State Tax Id. We also have a federal tax id as well. I think we had to do the federal id first. We were able to do this all through the internet and faxing in forms. It's been 6 years since I've done this, so things may have changed.

My husband is an employer and receives a paycheck from his company (under an S-Corp). I take out taxes, FICA, Medical and do the unemployment filings. It's not that difficult, and we use QuickBooks and pay for the payroll piece to help us with all that.

Recordkeeping is key. Mileage, expenses, sales. Keep it all and keep it organized.

Good luck!

--A.

1 mom found this helpful
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A.L.

answers from Chicago on

An LLC isn't necessary. You should apply with the state department of revenue for sales tax purposes. You also need to apply for a business license through your county and to get your DBA.

I know of some message board groups that are very helpful with B&B products as well as business ideas. If you'd like a link to one, send me a message.

I'd love to try your stuff! Are your soaps hot/cold process or melt & pour? I make candles and enjoy swapping with B&Bers. :)

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