Re: License, Ins, taxes.. What's needed to do henna?

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Posted by Erika on October 6, 2003 at 15:50:21:

In reply to: License, Ins, taxes.. What's needed to do henna? posted by Kymberlee on October 6, 2003 at 13:31:11:

If you earn $1, you're supposed to report it to the IRS....I used to
do taxes for a living. You'll be filling out a Schedule C along
with your regular forms. Can you beleive you're even supposed to
report if you won $2 on a scratch off lottery ticket...or if you
barter goods with someone, the goods that you get from them is
considered income? Crazy!

That said...the rest really depends on your location. Since you're
in FL like me, I have a pretty good feeling for what you need.

If you are going to sell anything besides henna designs, you need to
go to the Florida State Revenue Department website to get a Tax ID
number for collecting state sales tax. It costs $5 for this and it
allows you to purchase from wholesalers.

Registering a business name...If you are using a name other than
your own, then you are supposed to register it. From what I've been
told, this actually costs several hundred dollars....UNLESS, your
name is part of the business name, then it's free. I use DBA Erika
Harrison for paperwork, but my signs and business cards say Mehndi
by Erika...It has my name in it and what I do, so no need to
register a ficiticious name.

Occupational license: If you only work out of a salon/tattoo shop,
you are covered under the occupational license of that building. If
you work festivals, the festivals are working on their own city
permit and you are covered under theirs. If you work parties...You
actually are supposed to have a business license, though you'll have
to determine which license will be cheapest for you since there
won't be one for henna artists. You could try as party entertainer
or face/body painter. Don't even bother trying to get a "home
business" license unless you know for a fact that others in your
area can get them. Most of the time, they'll just tell you that you
can't legally operate a business out of your home. I wanted to
start a gift basket business. I was going to put together baskets
at my house and sell them at the flea market. They told me I was
not allowed to "assemble" the gift baskets at my house, that I'd
need to rent a commercial location...Bunch of BS in my opinion.

Best of luck in your venture!
Erika

Real Henna Zine

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: If you earn $1, you're supposed to report it to the IRS....I used to : do taxes for a living. You'll be filling out a Schedule C along : with your regular forms. Can you beleive you're even supposed to : report if you won $2 on a scratch off lottery ticket...or if you : barter goods with someone, the goods that you get from them is : considered income? Crazy! : : That said...the rest really depends on your location. Since you're : in FL like me, I have a pretty good feeling for what you need. : : If you are going to sell anything besides henna designs, you need to : go to the Florida State Revenue Department website to get a Tax ID : number for collecting state sales tax. It costs $5 for this and it : allows you to purchase from wholesalers. : : Registering a business name...If you are using a name other than : your own, then you are supposed to register it. From what I've been : told, this actually costs several hundred dollars....UNLESS, your : name is part of the business name, then it's free. I use DBA Erika : Harrison for paperwork, but my signs and business cards say Mehndi : by Erika...It has my name in it and what I do, so no need to : register a ficiticious name. : : Occupational license: If you only work out of a salon/tattoo shop, : you are covered under the occupational license of that building. If : you work festivals, the festivals are working on their own city : permit and you are covered under theirs. If you work parties...You : actually are supposed to have a business license, though you'll have : to determine which license will be cheapest for you since there : won't be one for henna artists. You could try as party entertainer : or face/body painter. Don't even bother trying to get a "home : business" license unless you know for a fact that others in your : area can get them. Most of the time, they'll just tell you that you : can't legally operate a business out of your home. I wanted to : start a gift basket business. I was going to put together baskets : at my house and sell them at the flea market. They told me I was : not allowed to "assemble" the gift baskets at my house, that I'd : need to rent a commercial location...Bunch of BS in my opinion. : : Best of luck in your venture! : Erika
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