Starting an internet business. Where to start?

*tappel* · 04-13-2003, 05:55 PM

I'm considering starting a web based store that sells musical strings. Where do I start? I just looked at a potential supplier and, before they accept you as a retailer, they want a tax ID number. It'll be me myself and I doing this.

I really don't know how to get going on this. Any pointers or resources would be greatly appreciated.

Tom

*Wassercrats* · 04-13-2003, 06:22 PM

They need the tax ID number so they can sell to you without charging you sales tax. The law is that you don't have to pay tax for something that will be taxed when you resell it. To start that business in New York State, I think a sales tax certificate is all you need, but you might want to consider reading up on starting a business, or consulting with an attorney. The Business Library at 280 Cadman Plaza West in Brooklyn is a good place to do research on this, if you're in New York City.

**Deb** · 04-13-2003, 07:10 PM

I would strongly recommend visiting http://www.Score.org

They have FREE email counseling with volunteers that are educated in the areas you'll have questions. They also have a variety of articles etc that may help you out.

In addition to Score.org, take a trip down to your local Chamber of Commerce. They'll be able to explain more to you, especially in the areas where 'location matters'.

Good luck with it!

Deb
- For the know-it-alls out there... Volunteer

*kitchin* · 04-13-2003, 11:54 PM

Your tax ID number can be your Social Security number, oftentimes. Don't know about sales tax exemption.

*Randall* · 04-14-2003, 01:24 AM

Quote:

Originally posted by Deb:
In addition to Score.org, take a trip down to your local Chamber of Commerce.

Speaking as a part-time chamber employee, thanks for the plug.

Though truth be known, we usually refer people to Score anyway.

Randall

*Syneryder* · 04-14-2003, 01:55 AM

Cool stuff! Any other links anyone wants to suggest, especially any Australia-specific ones?

I know that in Perth there's the Small Business Development Corporation who provide free information and even free business mentoring (though I've not taken advantage of the latter yet).

I also know MYOB has been hyping up on TV ads their new site MYOB Connection, though I've not tried it yet - just going to register now and sneaky peek around. Edit - it seems to be a large but fairly general reference site. No forums that I can see yet.

*TVB* · 04-14-2003, 02:12 AM

Tappel...

Pssst:

http://www.irs.gov/faqs/page/0,,id%3D15723,00.html

and

http://www.irs.gov/businesses/small/...=97860,00.html

and best yet...despite the usual IRS business, they won't ask for any $$$.

And yes, you can use your SS# if you don't mind giving it out to whoever. This is a a good substitute and if I remember correctly from the last time I got one (I have one for freelance work I do because it enables me to make myself exempt from withholding with a couple of freelance jobs I do regularly...I still pay taxes each year but I do it quarterly and really save in the long run)

Best of luck,

Betsy

*tappel* · 04-16-2003, 06:53 PM

I knew these would be the forums to get me started. Thanks, gang!

Tom

*tappel* · 04-24-2003, 02:48 PM

The ball is rolling! Just got back from the local SCORE office (great tip, Deb, they were great) and I've been doing lots of phone calls and research. It's exciting.

Anyway, one thing I need help on... just how does the online credit card process work? I've been looking into shopping cart software and merchant accounts. If someone could put those two in a nutshell for me, I'd be thrilled.

Thanks again for all the great tips,
Tom

*Rich* · 04-24-2003, 08:07 PM

Quote:

I've been looking into shopping cart software and merchant accounts. If someone could put those two in a nutshell for me, I'd be thrilled.

LOL, not sure if that topic is 'nutshell-able'. Your question is like asking "tell me how to write software in 500 words or less."

It might be better for you to list the questions you have or areas of confusion and start from there.

However, here is the 'nutshell' version:

Order Application / Shopping Cart <=approve credit card=> Payment Processor

Payment Processor <=settles transaction=> Merchant Bank

Merchant Bank <=$ in/out=> Your Checking Account

-OR-

If you use a 3rd party processor (like Kagi, 2checkout, etc.), the Merchant Bank portion of the above would be eliminated (from your perspective, anyway).