Not sure why kind of license to get..

[snofarmer]

When beginning a business, you must decide what form of business entity to establish. Your form of business determines which income tax return form you have to file. The most common forms of business are the sole proprietorship, partnership, corporation, and S corporation. A Limited Liability Company (LLC) is a relatively new business structure allowed by state statute. Legal and tax considerations enter into selecting a business structure.


A Limited Liability Company (LLC) is a business structure allowed by state statute. LLCs are popular because, similar to a corporation, owners have limited personal liability for the debts and actions of the LLC. Other features of LLCs are more like a partnership, providing management flexibility and the benefit of pass-through taxation.
Owners of an LLC are called members. Since most states do not restrict ownership, members may include individuals, corporations, other LLCs and foreign entities. There is no maximum number of members. Most states also permit “single member” LLCs, those having only one owner.
Business Structures

[CAVA1990]

Originally Posted by Hemlock140

People get business licenses to be able to buy wholesale, and the states
don't like that. Check the regulations, you may find that they require you to show a certain minimum sales amount or will cancel your license. They don't care if you make a profit, just that you are actually a business.

That's not really correct. At least where I live, business licenses are issued by the county not the state. The state couldn't care less whether you have a business license as long as you pay your sales tax. If you have low or no sales in my county you pay a flat amount for the licsnse.

[StealthRabbit]

Most states issues business licenses, SOME local gov require an addtional license (within the zoning limitations of address of business)

You can deduct legitimate business expenses with an LLC. You can only deduct as much as you EARN, you cannot offset OTHER w2 earnings with Self Employment business losses. (Some conditions excepted) You can get a full description from a business tax guide. I also recommend paying a GOOD accountant and hourly consulting rate once you get stuff pretty well figured out (just to verify your interpretations).

It is really quite simple to register a business. LLC's take some legal agreements and additional registration (~ $250) (and annual fee~ $80 for each of my LLC's). You can treat an LLC as a 'pass-through' entity (taxed on your personal return). OR you can treat as a Corporation (much more truble, but good idea if you want to deduct medical premiums, and don't mind being taxed twice (corp and individual))