Starting an Online Art Shop in Georgia, looking for advice.

[Pheserus]

I would like to start an online Art store in Lawrenceville GA and I want to sell the original art that I create, and portraits by request, and will be required to collect sales tax. Which would be the best type of business (sole proprietorship or LLC) with only one or two employees?
Do I need to apply for a county, state, and federal Id # as well?
Is a business plan required before making application?
Which application do you file first?

 

[quincy]

If you are planning to sell only your own artwork, I am not sure I understand your reason for wanting to form a business.

But, here is a link to what you need to do to start your business:
http://www.georgia.org/small-business/start/

I recommend you federally register the copyrights in all of your works of art. If you plan on transferring any of your exclusive copyrights in the artwork or plan to license one or more of your copyrights, make sure you have drafted proper transfer agreements or licenses that spell out what rights you are granting the purchaser.

Good luck with your art store.

 

[Pheserus]

Thank you for the reply.
It would be nice to not have to form a business, but would I not have to collect sales tax? When I search how to register for that online I always see the requirement of having a business. Also I am interested in going to art and crafts shows which I think require a business license.

 

[quincy]

You can set up an LLC if you want to. You should discuss your business plans with a professional in your area to see if that is your smartest choice.

If you are located in Georgia and you have no other business locations in other states, I believe you only need to pay (collect) sales tax on your Georgia sales.

You will need a sellers permit from your state. If you are selling your artwork under your own name instead of a doing-business-as (dba) name, you can use your social security number - or you can get an EIN (tax ID) number.

Depending on how much you collect in sales tax, you will be filing once a year, quarterly or annually.

You might want to read through the information in the link and look for business resources in your area to help with the startup.

Good luck.

 

[Whoops2u]

If you are located in Georgia and you have no other business locations in other states, I believe you only need to pay (collect) sales tax on your Georgia sales.

While I expect it will be true for /u/Pheserus, see also:
https://www.supremecourt.gov/opinions/17pdf/17-494_j4el.pdf

 

[quincy]

Signed by Georgia Governor on May 3, 2018, with effective date January 1, 2019:

http://www.legis.ga.gov/legislation/en-US/Display/20172018/HB/61

 

[Whoops2u]

Signed by Georgia Governor on May 3, 2018, with effective date January 1, 2019:

http://www.legis.ga.gov/legislation/en-US/Display/20172018/HB/61

Everyone should agree a person with situs in a state has to collect/pay sales tax under the laws of the state. The problem is, with sales over the internet, what do other states want? If it is to tax at the sales point if sales exceed $100,000 or if the sales exceed 200 separate transactions, it is not unconstitutional for that other state to demand sales tax from the seller. Those numbers are not a bright line rule. Part of the statute posted is Georgia's claim to sales made from California or any other state. (Georgia likes the 200 transaction rule but upped the amount of sales to $250,000) All the other states can make similar claim.

 

[quincy]

It will depend on the number of sales made and to whom. Pheserus will want to discuss the specifics with a professional in his area.