Starting Up >> Registration?

[EasyLinks]

I will admit right outfront - I am a total and complete newbie to the business world. I am working with a friend on starting a business selling caffeinated/energy products. (Energy drinks, candy, mints, etc.) My friend and I are both unde the age of 18 - and have been using our parents credit cards in purchasing of items. We have searched and searched and tried to do some research on registering an online business in New Jersey, and have mainly come up short. My friend is 16 - which I believe is the legal age to own a business. Otherwise we may be able to go completely under my parents name. If anyone has information on registering online business in New Jersey and how taxes would work with the items we sell - I'd be very greatful. This post makes me really look like I shouldn't even be going into business with my small amount of laws in the area - but I am quite deteremed, as is my business partner. Ah, and if you'd like - the company website is DashEnergy.com (Still in building process, just a temp page and forum). Thanks for all the help!


- Bryan Hewitt
Co-Owner
DashEnergy.com

[Dalen]

Here are some links for you to review:

https://www.state.nj.us/treasury/rev...ing/leadpg.htm
http://www.state.nj.us/treasury/taxa.../sales/su5.pdf
http://www.state.nj.us/treasury/taxa.../sales/su4.pdf

You'll need to register with the state to collect sales tax and file your payment on a semi-annual basis. You're only responsible for collecting on internet sales shipped to New Jersey.

You'll probably want to incorporate, to add a little protection to your company but also to establish your company as separate from you .... some suppliers may unfairly judge you guys on your age. First you'll want to apply for a employer id number (EIN) which is like a social security number for your company. You'll receive payroll reporting forms, but you'll only need to file once a year ... probably $0 withheld because you'll both be taking from the profits.

Sounds like a lot, but it's not. Just turn a profit and fill out forms, those are the important details.

Good luck.

[EasyLinks]

Heh, thanks for the input - but would you care to explain the duration/stock/registered agent info? =\ I'm totally blind with that. Sorry.

[Dalen]

Duration = indefinite and the registered agent can be you, your partner or one of your parents or a combination. That's basically who's the registered owner of the incorporation. Stock, you can issue 1-1500 shares of privately held (different than publicly held on Wall Street) to be distributed between the owners. Please note that once you file, you'll have to pay to submit your annual report (a requirement):
Annual Reports

All corporations, limited partnerships, limited liability companies and limited liability partnerships – domestic or foreign, must submit annual reports and associated filing fees each year. The annual fees are:

$50.00 for all corporations, limited partnerships and limited liability partnerships;
$50.00 for all limited liability companies; and

$25.00 for all non-profits


It's ok that you don't know these things and good that you ask.

[EasyLinks]

Do you think I should put 2 stock? Since everything is basically 50/50 with my partner? Also, are you sure I can put it under my own name? I am only 14, my business partner is 16. I really appreciate this help, thanks again!


*edit*... I also read those tax forms, about 50% of the products we will be carrying fall under taxed area.

[Dalen]

Hmmm, that's a good question. I'll look through some legal books I have and see if there's a prescedent (sp?). I would think you'll want it under his name, then you can be amended in later. And yes, 2 shares would be fine.

[EasyLinks]

Thanks again, do I owe you anything for all this advice? It really helps alot.


*edit: I also have just realized yahoo wants you to provide a bank account it can transfer funds too... they ask aboud MID and TID numbers. My business partner has an account that I believe is under his dads name - would this be legit or would it have to go under the main persons name? I am not sure at the moment what bank it is but I will find out momentariley..

Quoted from YAHOO!
"If you already have a merchant account, call your bank to find out if your existing merchant account is compatible with the First Data Merchant Services' Nashville platform (formerly known as Envoy).
If compatible, obtain the MID and TID numbers from your bank and email those two numbers, the merchant account provider name, merchant account number, the credits cards you accept, and your Store account name to store-support@yahoo-inc.com. We will link it to your Yahoo! Store within two business days."

* My friends account is under his dads with FLEET.
* He may also be able to go under his mom with Farmers Mechanics.
Preferably fleet.

[Dalen]

Have you explored 2checkout.com for your merchant account? I know some people on Sitepoint.com who are under 18 but have accounts with them. You'd need your own site though. As far as I know, he can register for the merchant account using the joint account you mentioned ... I don't see a problem with that.

No, you don't owe me anything. As I tell everyone, my advice is free but when your company is successful enough to need an accountant ... please keep me in mind.

[EasyLinks]

I did check out that other website your recommended, but the "specs" were a bit too much considering we are selling low priced products ($1.00-$24.00 is about the range of our product prices) So the 45 cents would be the profit on some of the smaller items we sold.

One-time set up fee of $49.
5.5% commission plus a $0.45 charge on each total sale.
That's it! There are no leases, no monthly fees, no application fees, no software to buy, no secure server to purchase, no statement fees and no per payment fees!
Rates include Credit Card or Check Processing fees. There are no fees for a gateway or third party company. It's all included, the 5.5% and $0.45 is the total you will pay for each sale.

[Dalen]

Ok, good anaylsis though. I didn't realize that your price points were at that level.