The Trial and Error Period

[MakeMoreMoves]

So, I made a thread a while about selling without a business entity. I was told that the 5k mark is a good mark to start getting an official business entity. But anyways, selling my products through reddit, forums, eBay so far. It feels so sketchy. Is the law understanding that I am just selling for trial and error right now of the product? Unsure of how big the consequences are. I just keep thinking the police is going to knock on my door. Everything I am selling is legal.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[RadioActive]

I'd say don't worry about it until you start making more, and please don't forget about taxes

 

[The-J]

Double post

 

[The-J]

If you don't have a business entity then you would pay self-employment tax based on your business profit, and you would include that on your revenue. Depending on how much you make, you'd have to pay estimated tax.

(USA)

But the police isn't going to knock on your door. In fact, what you're doing is only illegal if you lack a license to do business... which is easy enough to get.

I don't see why people hold off on creating an LLC when it's only like $200 (depends on your state, might be more). It's not exactly a big step. I created a LLC for a business that failed a few years ago but I still use it, my EIN, and my business licenses. Makes my life easier just having it. It hasn't saved me tax money but I like to think it's kept me out of trouble.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[MakeMoreMoves]

If you don't have a business entity then you would pay self-employment tax based on your business profit, and you would include that on your revenue. Depending on how much you make, you'd have to pay estimated tax.

(USA)

But the police isn't going to knock on your door. In fact, what you're doing is only illegal if you lack a license to do business... which is easy enough to get.

I don't see why people hold off on creating an LLC when it's only like $200 (depends on your state, might be more). It's not exactly a big step. I created a LLC for a business that failed a few years ago but I still use it, my EIN, and my business licenses. Makes my life easier just having it. It hasn't saved me tax money but I like to think it's kept me out of trouble.

Crap, I don't have a license. Should I get an LLC or Business license first? Wait so is a business license the same as an LLC? And people like me hold off on LLC because right now I am testing my product on the market. If I invested to get a business license on every idea I had, I'd be dead broke.I think LLCs also have a maintenance fee as well.

 

[The-J]

Crap, I don't have a license. Should I get an LLC or Business license first? Wait so is a business license the same as an LLC? And people like me hold off on LLC because right now I am testing my product on the market. If I invested to get a business license on every idea I had, I'd be dead broke.I think LLCs also have a maintenance fee as well.

They're different things. Google "business license [state]" and see what's up.