SolveYourProblem
eBusiness Series:
How To Start
Your Own Retail Business
From Preparation To Profitability
( 15 Pages )
Business
Registration, Permits and Licensing
You will need
to apply for all of the needed permits and licenses required
for your retail business. Some of these can include:
Business
Registration
You will have
to register the name of your retail business before you can
place it on the market. You will need to think of a name
that is catchy and easy to remember. The law requires you
to register your business name so that no other company
uses the same name as you do.
Each state and
municipality has their own laws regarding this so you would
be better off asking your local registrars office what the
proper procedure is beforehand. Registering your business
will ensure that your retail business has its own business
number that you can use when setting up accounts with warehouses
that host your merchandise.
Vendors
Permits
You will also
need to register for your vendors permits. This is basically
a piece of paper that states that you are legally allowed
to charge money for certain merchandise. Your vendors permit
should be placed in an area that is visible to the public
at all times.
The reason that
you need a vendor’s permit is because you will also have
to charge taxes on your merchandise. You can’t tax your merchandise
without a vendor’s permit. Permits are always very particular,
so you will need to include the exact type of merchandise
that you plan to sell in order to receive the correct permit.
If you are planning
to open a clothing outlet, but want to add some food items
to your shelves, you will need a special permit to sell both.
That is why you want to make sure that you are very specific
with the type of permit that you request.
Taxes
Believe it or
not, you also have to register for a special tax number so
that you can charge taxes to your customers. You need
this number because each time you process a purchase and
charge the necessary taxes, the taxes go directly to the
internal revenue service. If you don’t charge taxes to your
customers, then you will be responsible to pay all of that
money yourself.
You must file
the yearly taxes with the IRS each fiscal year end. This
means that your business taxes are due every year around
the same time as you first began your business. You will
have a lot to account for if you didn’t charge any taxes
to your customers and if you weren’t properly registered
with your local tax service.
Insurance
Although it is
not necessary that you apply for insurance on your residential
property, you must apply for insurance on your business property.
With the crime rate being what it is, you have to have insurance.
But there are at least 3 types that you must apply for when
starting your own retail business, and they are:
1. Workman’s
compensation: You have to be able to support your employees
should they get hurt on the job. You as the employer has
to apply for this from a private insurance company.
2. Liability
Insurance: This is in the event that a consumer is
injured on your property. At the least you have to apply
for ‘limited liability” insurance.
3. Property: Naturally
this type of insurance will protect you in the event of a
fire or theft etc. It helps to know that you can regain
some of your property or merchandise back in case of a disaster
or crisis.
 
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