Question by Jilly Bean: How do u start a business at home?
My family would love to see me open a bakery in the future but for now work from home how do i do it legally?
Answer by M W
You begin with a product. You can start making money up to a reasonable point (which comes quickly). So you may list your income (profit) as hobby income the first year.
But you must get a business license. So you file a fictitious business name statement in a local publication, submit for a business license at your town hall, once approved you get a business license.
With this license, you may purchase goods for your business without paying taxes on it. Plus you then have the right to sue or to be sued. Currently you have no legal recourse if someone stiffs you.
Keep books, keep receipts, be fair and look into the aspects of being in the food business. That’s the part I know nothing about. You will file reports quarterly and you will send in tax revenues at that time.
More advice: Do not take on a partner, especially not a friend or family member. Read a simple book on the subject. Consider hiring a book-keeper so that you can focus on your craft.
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