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Oporter
Level 1

Starting an online business basics?

Hello I feel completely lost when it comes to this. Could you layout what exactly is needed to start an online business in Texas? I would like to sell stickers and other crafts on Etsy but not sure where to start? I've looked up things on the internet but there's so much information its overwhelming. So I have questions such as:

What do I do first?

Would I be considered a Sole proprietor or an Independent Contractor?

What licenses to I need?

What forms do I need or does the website send me the correct tax forms?

How specific does a name have to be to not need a DBA?

Do I need to get a CPA?

What type of advisors do I need or do I need any?

If not you guys who do I talk to about starting this up a lawyer, a CPA or another type of advisor. 

 

I really need a lot of guidance and am starting at the very ground level of this journey and interested in giving this a try and want to do it right.

 

Thank you for your time! 

Olivia 

 

1 Best answer

Accepted Solutions
Donna F 77
Employee Tax Expert

Starting an online business basics?

There are many steps for starting a business.  You definitely need to determine what type of business entity you are creating.  Most small businesses start out as sole proprietors.  (This is the same thing as an independent contractor).  Sole proprietors include their business income on a Schedule C on their personal tax return.  This eliminates having to file a business tax return and a personal tax return.  For liability purposes, you may wish to create an LLC in your state.  IRS does not recognize an LLC as a tax entity so if you are a single member LLC you will still file your tax return as if you are a sole proprietor.  This link will allow you create the LLC in Texas and it also provides a wealth of information about starting any type of business entity in Texas.

Starting LLC in Texas

 

Generally, I suggest visiting your locality's Treasurer or Commissioner of Revenue to obtain a business license first.  (If you are creating an LLC, you will need to create it before going to get the business license.)  Your locality will be able to provide additional helpful information as well. 

 

If you are really unsure of what to do, you may want to contact a QuickBooks ProAdvisor, Enrolled Agent, or CPA in your area. 

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2 Replies
Donna F 77
Employee Tax Expert

Starting an online business basics?

There are many steps for starting a business.  You definitely need to determine what type of business entity you are creating.  Most small businesses start out as sole proprietors.  (This is the same thing as an independent contractor).  Sole proprietors include their business income on a Schedule C on their personal tax return.  This eliminates having to file a business tax return and a personal tax return.  For liability purposes, you may wish to create an LLC in your state.  IRS does not recognize an LLC as a tax entity so if you are a single member LLC you will still file your tax return as if you are a sole proprietor.  This link will allow you create the LLC in Texas and it also provides a wealth of information about starting any type of business entity in Texas.

Starting LLC in Texas

 

Generally, I suggest visiting your locality's Treasurer or Commissioner of Revenue to obtain a business license first.  (If you are creating an LLC, you will need to create it before going to get the business license.)  Your locality will be able to provide additional helpful information as well. 

 

If you are really unsure of what to do, you may want to contact a QuickBooks ProAdvisor, Enrolled Agent, or CPA in your area. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Oporter
Level 1

Starting an online business basics?

Thank you very much I think I have an idea now.

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