There are so many questions when opening a business. It can get overwhelming very quickly. Here are a few frequently asked questions.

Q: I read that if I was going to do business outside my state I needed to register the business in those states as well. Given the fact that I will be covering NY as well, does that mean I have to register there too?

A: You only need to register in the state(s) that you have a physical presence. If you have a store front in NY you will need to register in NY as well.

Q: As far as tax is concerned, what kind of liabilities am I looking at?

A: You are responsible for sales tax for any items sold to individuals residing in your state if your state has sales tax. You will also be responsible for self-employment tax at the end of the year as well as state and federal income tax as a sole proprietor.

Q: Do I need to apply to FEIN number?

A: If you are in retail or your business is incorporated you will need to obtain an FEIN from the IRS. Most manufacturers will require the number and will not allow you to use your SSN.

Q: How will using my SS# affect me at the end of the year when I render taxes?

A: Whether you use your SSN or an FEIN it doesn't affect how you report your income. It is better to have an FEIN so that you are not using your SSN on business paperwork.

Do you have questions? Please feel free to post them. I am happy to provide the answers.