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  Questions & Answers  
 

 

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