Four Reasons to Register Your Gift Basket Business
Lucy asks: “What comes first: Starting my gift basket business or applying for a business license? Does it matter?”
Once you know, without a doubt, that the business of gift baskets are your passion and you will be making them for income purposes, it’s best to apply for your business license first.
Here’s why:
1. The license commits you to starting this business for real. You’ll have to submit any taxes collected when you get orders from people within your state, which is one task that hobbyists don’t want to complete (it’s a simple process to tally your sales and submit sales tax).
2. You’ll pay no sales tax to retail companies that have supplies you wish to buy. A.C. Moore and Michaels, as examples, may have baskets or floral supplies discounted at a cost so low that it makes sense to buy from them. When you have a license, you can register your business with those retailers so you pay no sales tax on the items purchased.
3. You will qualify for state assistance, contests, and other incentives and support because you registered your business as a bona fide entity regarded highly by institutions that are willing to assist you free of charge (places such as the Small Business Development Center).
4. There will be lots of confusion if someone else has registered the business name you want to use and you don’t notify the proper state or country officials beforehand. In addition, you will most likely have to change your business name and all marketing materials when you finally register.
The low cost of legal registration provides you with lots of rewards and money-saving opportunities. That’s why it’s wise to take care of the paperwork before you officially open for business.
