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10 Replies Last post: Sep 12, 2008 3:11 PM by rh1000

Starting online sole proprietorship?

Mar 19, 2009 5:13 PM

Click to view SmokedOysters's profile Start-up SmokedOysters 2 posts since
Mar 19, 2009
For the past year or so I've been running an unofficial (that is, unlicensed) hobby business online selling tabletop gaming materials and offering a commission model painting service. Recently I've been looking into getting a wholesale contract in order to increase sales and profits, however the companies that offer such contracts require applicants to have licensed businesses, tax IDs, etc. So, this led me to think I should just formally register my business and get the benefits that come along with that, and then also the ability to expand more with wholesale contracts and other things.

So, my question is, what exactly do I have to DO in order to get a business license (I live in MN) for an online business? I believe I desire a sole proprietorship setup, since from what I understand it is very simple, and I am, after all, the only person who would be in the business. Here's some other questions,

  • How much am I looking to have to pay to become official?
  • Wholesalers want a "Federal ID" -- is this part of the "business license?" Is a "business license" a general term for something for specific?
  • Where do I go to actually register and obtain a license? Can I do it all online?
  • Does being purely Internet-fronted affect anything? There will be no physical location of my business, besides my home (where it will be run from, obviously).

And, finally, is this even possible if I am a minor (which happens to be the case)? Do I just have to have a co-signer or something?

Thanks to anyone willing to help me with this.
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Click to view LUCKIEST's profile SCORE LUCKIEST 7,935 posts since
Aug 6, 2007
1. Re: Starting online sole proprietorship? Mar 19, 2009 5:50 PM
in response to: SmokedOysters
Starting online sole proprietorship

To get a federal I D Number go to IRS.gov and fill out the form.

A business license is different. Good luck
Click to view SmokedOysters's profile Start-up SmokedOysters 2 posts since
Mar 19, 2009
2. Re: Starting online sole proprietorship? Mar 19, 2009 6:01 PM
in response to: LUCKIEST
Which form? Is a Federal ID the same thing as EIN?
Click to view LUCKIEST's profile SCORE LUCKIEST 7,935 posts since
Aug 6, 2007
3. Re: Starting online sole proprietorship? Mar 19, 2009 6:26 PM
in response to: SmokedOysters
YES, WHO ARE YOU??
Click to view 12cups's profile Start-up 12cups 1 posts since
Mar 19, 2009
4. Re: Starting online sole proprietorship? Mar 19, 2009 10:29 PM
in response to: SmokedOysters
EIN Employer Id Number
or Federal Tax ID Number
No cost

You can also do over the phone.

Business license -- go online with the state of Minnesota and locate teh stat'e corporation commission.
Costs to file vary from one state to another.
Click to view amspcs's profile Mogul amspcs 516 posts since
Oct 18, 2007
5. Re: Starting online sole proprietorship? Mar 20, 2009 9:23 AM
in response to: SmokedOysters
All of your questions should be directed to a qualified CPA and/or business attorney, , not necessarily
to this forum. This is because the answers to your questions are not generic...they all depend on your
specific and unique circumstances.
Click to view bmt2008's profile Mogul bmt2008 305 posts since
Jul 30, 2008
6. Re: Starting online sole proprietorship? Mar 21, 2009 10:55 AM
in response to: SmokedOysters
Get an EIN from the IRSs website - it is free and fast - as a sole proprietorship - it is tied to your SSN. Might also think about filing an Assumed Name Certificate in your state. Usually does not cost more than $15 or $20 bucks.

Some states and some industries require a license - not all of them do. Contact your state's Secretary of State office - either online or in person - they will tell you want you need and how to get it.

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