Is Your Mum Business Legit?
If you took all the steps to start your business then you’re legit, right? Or maybe you started making mums for friends and neighbors and the next thing you knew you were a business.
Either path that lead you to where you are is great news, but now many are asking, is your mum business legit?
The Boring Business Stuff
- D.B.A. – Your Name
- Email – Phone – Address
If you’ve already done the basics, feel free to skip this part but just in case it’s been a while let’s skim over the basics and make sure we’re good.
This will be your first business:
You’ll need a name, an address, a phone and an email address.
First, do you have your D.B.A.? Your D.B.A. is your “Doing Business As” this is a certificate type paper that you file with your local courthouse. It tells the county you’re opening something and this is your name. Let’s say our mum business name is going to be “Mini’s Mums” we have to make sure the name is available and a good google search can usually make sure of that. Then we’re off to the courthouse to file D.B.A. (or our trade name, assumed name or fictitious business name.) Since this is our first business we are a Sole Proprietor and we only have to file with our county clerk, one form and $25 later, we’re in business.
Tip: It’s best to use your business name from here on out and not your own when it comes to all other business transactions.
Secondly your phone, email and physical address is the next important step. You will be tempted to use your cell phone number as a phone number, but those that are in business a while realize that’s not a great idea. You want you cell phone to be your personal cell and not your 24 hour hotline during season. Perhaps a 2nd line through an app or a vonage line will do. Your home address is fine to begin with and an email name should have your business name in it.
Now you’re off to a great start. You can go on to have a facebook page, social media presence, etc.
Taxes and the Feds
We are not tax pros, consult a professional if in question
Before we really get caught up in the fun stuff, we have to remember that Uncle Sam will want his cut. And to be honest the longer you’re in business you’ll notice that so does everyone else.
The Texas comptroller is your next stop. They’ll want sales tax. And trust us when we say, if you think they won’t know you’re selling out of your house, they already do. You see when we use credit card processors, they can’t keep secrets. Whether it’s Venmo, PayPal, debit card, clover, square or what not, the word gets out and a nice little letter will come to the mailbox sooner or later with a handout asking where your sales tax is. “But we only use cash,” Ah yes, cash, that’s still well until you take mum orders from that friend of a friend who is either a goodie 2-shoes, a tax pro, or a government spy. Either way, let’s play by the rules. Getting an account with the Texas comptroller is a good idea.
Also filing taxes with the Feds is a good idea. Remember there are hobby and there are business. See which one you fall in. And please don’t fall for the “PayPal Trap” when they say you only have to make x amount to file, and three years later the IRS sends a letter to collect. (It happened). File it all, the good the bad and the ugly.
Keep your mum business legit.
These were just the bare bones basics. We’ll get to more in the next Mum Maker Magazine. For now, thanks for reading!
-Editor-In-Chief Mum Maker Magazine.