Registration

US sales tax is a maze. In what ways do state regulations, product categories, and customer locations influence my requirements? What legal "gotchas" do new online sellers often miss that can lead to major penalties later?

@Mark said in How did an LLC transform this startup's growth trajectory?:

A sole proprietorship is much simpler and cheaper to start, but you must remember that it offers no protection against personal liability.

I'm considering a sole proprietorship for its affordability and simplicity; however, I'm anxious about the lack of liability protection. Is saving upfront worth the risk of losing my savings or home if things go wrong later?

@Mark While Delaware is the top choice for venture-backed startups, is it worth the complications if I’m bootstrapping and focusing on cash flow? Do the legal perks really matter on a day-to-day basis, or am I just paying extra fees for protection I’ll never use?

Does that really work in real life? I’m kind of concerned that my name might still pop up in some random public database or state paperwork that a nosy HR person or just a quick Google search could uncover. Are there any potential loopholes or documentation problems I should watch out for with a professional service?

@SophiaK said in How to avoid big tax bills when forming a Delaware C-Corp?:

I've heard that messing up a Delaware C-Corp can lead to huge tax bills, but I also know investors hate LLCs. Since I’m new to startups, wouldn't it make sense to just use Stripe Atlas or Clerky instead of trying to DIY the legal stuff and risking a disaster?

If you're starting your own business, I recommend using Stripe Atlas or Clerky instead of navigating everything on your own. They simplify the setup of your Delaware C-Corp and compliance issues from the beginning.

Investors typically favor a C-Corp for stock options and funding, so hiring professionals demonstrates your commitment. Doing it yourself may save money at first, but a minor mistake with taxes could result in serious and costly problems later on.

To apply for an EIN, visit the IRS website and complete the online application—it’s completely free. You'll receive your EIN immediately after finishing the process. Once you have your EIN, you can open a business bank account by providing the necessary business documents and personal identification. To cash checks, make sure the account is opened under your business name.

That's a very good initiative your mother is taking. To register the nonprofit organization, you need to do the following things:

You need to incorporate with your state's Secretary of State. Apply for an EIN (Employer Identification Number). The IRS issues this number. File IRS Form 1023 (or 1023-EZ). The difference depends on the annual gross receipts.

If the forms are approved, then the IRS sends the "Determination Letter" and confirm 501(c)(3) tax-exempt status. Once you get this status, then you need to separately apply for state-level tax exemptions. Once 501(c)(3) status is granted, your organization enjoys significant tax benefits.

About the tax implications:

Your organization needs to file the annual IRS returns (Form 990 series). Benefits include tax exemption and deductible donations.

We have already described the rules and regulations you need to open a food business in the US. You can check out this post: https://fincuss.xyz/topic/207/what-documents-are-required-to-open-an-online-store/2

Apart from all the documents described in the post, you also need health and safety permits like a food license from the local health department, food handler permits/certifications, fire safety permits, and a certificate of occupancy.

We have already described the rules and regulations you need to open a food business in the US. You can check out this post: https://fincuss.xyz/topic/207/what-documents-are-required-to-open-an-online-store/2

If you need further help, feel free to reach out to us.

Yes, each state has its set of rules and regulations for a DBA. Registering a DBA (Doing Business As) name in the U.S. allows a company to use a name different from its legal one.

Rules and costs for DBA registration are state-specific. Filing fees typically range from $10 to $150, with many states between $20 and $50. Some states require newspaper publication, adding $50 to $100 in costs. Expedited processing may be available for an extra $20 to $100. Sites like LegalZoom, ZenBusiness, and Northwest Registered Agent assist with DBA registration.

For starting a homemade chocolate business, you need a Business license, a Food handler's permit, and potentially a Cottage food operation permit. The labeling of your food item must meet the standard set by the FDA. Check Local Health Department Regulations for food safety. Before starting a business, Insurance, Zoning laws, and Sales tax permits are mandatory.

Yes, it's a kind of challenging thing, as this setup needs high initial costs, precise zoning regulations, and a competitive market. Finance is important, so explore SBA (Small Business Administration) loans or find good investors.

Finding a suitable location in your budget is very important, as real estate prices in Austin are very high. Study the local market and then set your franchise.

Local permits and licenses should be done before opening a business, and for that it's better to consult a business counselor.

Can you explain the USPTO patent application process and how much time it will take to approve the patent?