Starting an online store

[magicman]

I am setting up an online store and am working on the design.

I have a tax certificate on the way for my main business, and a DBA for it. I also have a tax ID number, EIN. I will be running the store under a different business name.

Do I need to get another DBA, EIN and tax certificate for this store? Or am I fine using what I have now and filing under what I have now?

[phanio]

If you go to the IRS's website - they have a tremendous amount of information regarding EINs. You should not have to get another EIN and I think the IRS would also advise against it.

From the IRS's website - "Generally, businesses need a new EIN when their ownership or structure has changed. Although changing the name of your business does not require you to obtain a new EIN ..."

Here is the link - Employer ID Numbers (EINs) (http://www.irs.gov/businesses/small/article/0,,id=98350,00.html)

Just remember, try to keep your business as simple as possible - that way you can focus more on what you are providing and waste less time on everything else.

[magicman]

What about the DBA and tax certificate? I am still a sole proprietorship.

I perform magic, and the store is selling magic to other magicians. I am starting it to give me something to do (and make money with) during the week, when I am not performing.

[magicman]

This is the sales tax form for NYS: http://www.tax.state.ny.us/pdf/current_forms/st/st100.pdf

On step one it says "Gross Sales." Does this include online sales?

I just read that online stores only have to collect sales tax if they have a physical presence. I will be operating out of my house, there is no store that people can go to.

[Evan]

magicman,

You seem to be doing the exact same thing as your other business, why not just use that DBA and EIN? If you use another name, yes to another DBA, no to another EIN.

According that that form, gross sales includes everything -- tax exempt or taxable. You specify the taxable amount further down on the form as applicable.

See your other threads for an answer to your last statement regarding collecting tax for online sales... I know I've answered it before.

[phanio]

I am not that familiar with New York but I think they tax everything - even if you sell online. You would be better off finding a cpa or lawyer in your state to help you.

[magicman]

Ok, I will need a new DBA for the store, I can use the same EIN, what about the certificate of authority to collect sales tax? Will I need another one with the name of the store on it?

[Evan]

No. Use the same stuff, it's the same business.

[magicman]

What if the store has a different name? Does it not matter?

[Evan]

What if the store has a different name? Does it not matter?

A lot of websites use a slightly different name than the actual business. Doesn't mean they need a DBA for it.

For example, if you had the company "Smith & Company", an accounting firm, and a website called "BusinessCPA4Hire"... the domain name would probably be used as much as possible. Ultimately though, they're doing business with Smith & Company.

Again, I see you trying to create more nightmares for yourself than you really need to.