I
work full time but I would like to try to sell my product
on the side. What legal documents do I need?
If your goal is to make extra money and see how popular
your products are, you could strike a deal with a street
vendor to sell your product on consignment.
If you are serious about establishing a business, start
by registering a fictitious business name — also
called a DBA, or "doing business as," filing
— with the county clerk's office.
You also will want to establish a merchant bank account
for your company, so you can separate your personal and
business finances for accounting and tax purposes.
Be sure to keep careful records of your start-up expenses.
Next, you should get a business license or tax permit
from the city in which you will be operating and apply
for a seller's permit. In California, an application for
a seller's permit can be obtained from the state Board
of Equalization. Information is available at http://www.boe.ca.gov/info/reg.htmsales
.
Periodic sales-tax filings and deposits are required for
all vendors, whether wholesale or retail.
If you decide to launch your business, you will want to
register an Internet address (also called a domain name)
to sell products online. Do that quickly, or else a speculator
could spot your DBA filing and register the domain first,
hoping you will later pay an exorbitant price for it.
You also will want to set up a legal structure for your
firm and write a business plan that sets up the milestones
for transitioning from full-time employment to owning
your own full-time business. The U.S. Small Business Administration
has extensive information for new business owners at http://www.sba.gov
.
Frank Stokes
Small-business
consultant at Stokes Pacifique Associates of Los Angeles