In USA, what is needed to legitimately qualify as a ‘business’? Since this is needed for the new Express Checkout system, it is essentially necessary to be a business of you ever want to get another order on 3DHubs.
My understanding is that there are a lot of tax implications in USA and registration with the government is required by law to be a ‘Business’.
Can anyone speak to this?
I’ve seen my orders virtually disappear since Express Checkout went live. I guess 100% 5 star reviews on 90+ orders doesn’t mean much when customers can’t even select my hub unless they hit a greyed out button to ‘manually select’. So- my options are become a business or say goodbye to 3DHubs.
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Hi @AccountableJoe,
In some jurisdictions, you can start immediately as a sole trader, in some jurisdictions you need to register with the local authorities, sometimes also separately for both the business and tax registration (i.e. in the Netherlands you have to register with the Chamber of Commerce and Tax office).
As we cannot advise on all local rules, we recommend to contact local authorities to make sure you comply (Chamber of Commerce, Tax offices, etc).
Arnoldas - 3D Hubs
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In the US, you register with your state. Just search " *state* division of corporations". Registering as an LLC is very simple, although there are a few legal terms you’ll need to search to get familiar with. As a member managed LLC you can do the taxes for your LLC along with your personal taxes, so really no extra work. It is a pretty small fee to register, varies by state.
*The below is not required to be a business, but it helps.*
You can also apply for an EIN (employer identification number, usually no additional charge) which will allow you to open up a checking account in your business name. Helps keeping money separate, and very helpful when tax time comes. Getting QuickBooks Online will make life so much easier when it comes to managing business income and expenses. If you are already totally good on managing that aspect, by all means, keep on keepin on. But I need the help keeping that end organized, and it does the job, and give the ability to send invoices and estimates (another 3DHubs requirement).
There are other ways to accomplish all these things. An LLC is not the only way, and depending on an individuals specific needs, may not be the best way. But hopefully this at least points you in the right direction. LegalZoom offers to simplify things for a cost, but in reality, it is really not necessary. Registering with the state may seem a little overwhelming at first, but it really isn’t all that bad. Best of luck!
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I would also suggest talking to your tax person and see about sole proprietorship or what is the simplest for a small business.
Sole proprietorship is a good, inexpensive option for getting into business quickly. Depending on your location it requires little to no work. Just google “How to Start a Sole Proprietorship in (insert state here)”. Your income from 3D hubs minus expenses (filament, repair parts) gets added to your overall personal income when it comes tax time so you only need to file your personal income taxes.
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