Do I Really Need A Business License And Tax ID?

It's not uncommon for people to fear that they need to be licensed and tax-registered in order to run their own business. But the truth is, the more accurate answer is no.

The FTC has plenty of resources on its website that can help you determine if you're required to have a business license or a tax ID number in your state, but what they don't tell you is how easy it really is. You may not need any of these things at all! As long as you meet certain criteria (which varies from state-to-state), and carry out your business activity for profit without being part of an organization, then there's a good chance your will be able to legally stay anonymous.

If you do have to register for a license or business ID number, you can often find the contact information for your state's agency on your state department website. You can also find a comprehensive list of state agencies at thesos.com.

If you're starting in one state and then want to move your business elsewhere, you'll need to research whether the new state will accept the paperwork from the original, but often they will recognize it as sufficient proof that you were previously registered in another state with no questions asked. This can also be the case if you want to set up in a new state as a sole proprietorship or file as an individual, even if you're already registered in another. The important thing is to do your research and get it right first time.

If your business is getting bigger, there's no need for you to permanently change the address on your state documents; there's nothing saying that you have to change them at all. You may be required by law to keep them up-to-date with any business activities that have changed; but one of these changes could be moving from one town or city within the state and/or an expansion in size of either type of business. Another is if you're starting a new business, or when you are re-organizing your business under a different name. If so, you'll need to do a new LLC Formation or Operating Agreement.

A growing number of states now have on-line tools and forms that can be accessed right from the comfort of your home. This is great because all you need to do is check the box to register and they can send you your personalized license in no time at all. No waiting in line! You may have to pay a small fee (often less than $50) but this isn't always the case; California currently has no fees for online registration if it's not mandatory.

When researching your state's policies and procedures, you'll be able to find the answers to questions like:

Does your state require a business license for purchase of goods?

How can I get an exemption so that I don't have to register my business with the state?

Do I need a tax ID or a sales tax license if I'm selling products on Amazon or eBay? (Hint: No!)

Title: The Top 5 Mistakes Made By Self-Employed Contractors And Freelancers. (Avoid them!)

Self-employment is not for everyone. It takes years of dedication and hard work to build up your own business. Even then, many people don't know what they're getting into when they initially launch.

The tricky part of making a living as an independent contractor is that you are responsible for doing everything yourself. You have no one to fall back on to help you with any tasks, and there's no safety net if things don't pan out.

When you are working alone, there's nothing – and I mean absolutely nothing – that stands between your survival and the starvation line. That's why a lot of people opt not to work for themselves and try their hand at traditional employment instead.

They have been told that they will be protected from the high risk of self-employment, but too many people get into the game with no idea what to expect.

Self-employed contractors often face these five common mistakes:

1. Compromising their integrity.

Contractors are supposed to be honest and upfront with their clients, especially when it comes to paying them for services rendered. If they're not doing that, they can find themselves out of work or in serious trouble if they end up screwing over a client or being dishonest.

2. Not having enough to do.

There's nothing worse than sitting around waiting for the phone to ring, or even worse, telling yourself that you'll just work on the side while you wait. There's no motivation there and it can make you stay in a "screw this" state of mind, which isn't healthy or productive.

3. Not doing their research/getting training in their field.

Self-employed people should start out by learning what it takes to do the job at hand – whether it's masonry, plumbing or graphic design, for example – and then move on up from there. It's great if they try to make themselves stand out by doing some research or taking a course or two on their own.

4. Not living within their means.

Being a freelancer or self-employed is not a pleasant experience if you don't have money coming in at the end of it all. People who live in the red will find themselves getting more and more desperate for work to come in, and that can lead to making mistakes that affect their reputation – which can be hard to rebuild!

5. Not being paid enough money for the job at hand.

The amount of money you're willing to take on a job is totally up to you. What's important is to make sure that the pay rate is fair, especially when it's a first-time customer. Clients have no idea how many hours of work you put into something, and they probably won't care if the prices aren't what they expected.

When it comes down to it, self-employment is an extremely risky way of making a living. That's why it pays to research what you're getting into before taking that plunge!

To get started with your own freedom business strategy download your copy of "Top 5 Mistakes Made By Self-employed People" by going here now: http://www.

Conclusion

The most successful self-employed persons have the following characteristics:

SINCERITY:

Honesty is the best policy in their field of activity. They know that a reputation for honesty, trustworthiness and reliability is one of the most valuable assets they can possess.

KNOWLEDGE:

They know what they are doing; they are better informed than any traditional employer who will ask them to do a job which they don't know how to do and which no one in their direct line of operation can help with.

TENACITY:

They are determined, not easily discouraged or fazed by difficulties. And they consistently work at whatever it takes even when discouraged by negative results or adverse circumstances.