I Am Finally a Real Business
I am finally a real business. I have a tax exempt number and a FEIN number and everything.
This is a big step for me. I’ve been selling whole sale for a few years now, but I’ve always just gone to Jo-ann’s or Micheal’s or where ever I needed supplies and bought what I needed, sales tax included . Not thinking much about it. ..So basically every item was getting double taxed. Once when I bought it and another time from my retailer selling it. So why didn’t I go tax exempt before?
Well, I have a problem. I have what I refer to as “stupid math brain” This also goes along with “really stupid history brain” . What did this mean for me in my educational years? It meant ruining 2… count ‘em, two summers in summer school to REPEAT BASIC ALGERBA… And almost not graduating because it took me 3 TIMES to pass the U.S. constitution test.
The Lord obviously gave me many more “creative” gifts than “smart” gifts.
Now lest you think I am a complete idiot (Which I know my little one’s preschool teacher does because I’ve gone to the wrong school TWICE on the wrong day to pick her up .), I graduated with a 3.8 GPA from college, graduated at the top of my medic class, and actually manage to get the food in my mouth once in a while using a fork. However, it never dawned on me to add up the amount of money that was going out the door every time I paid sales tax with every purchase for resale. I didn’t think it really mattered and was really all that much. When I actually sat down and added it up, what I was throwing away was astounding.
Let me tell you, in the course of a few months getting ready for a show, it added up to quite a bit, which could be a lot of extra supplies, or in the very least, some math tutoring.
So my brave sister-in law-came over last night and helped me set up everything I needed, and answered every one of my patience-trying questions. She’s a saint… While this means I have to start charging sales tax at my shows, and paying sales tax to the government; it also means that I am not throwing money away, because when you are running your own business, every penny counts.
Why didn’t I do it before? I was overwhelmed. I was stymied at the thought of spending a couple of hundred dollars at the accountants to get it all straightened out ,and the minute I went on the IRS business page, to try and figure it out my eyes glazed over. And I just felt like maybe my business wasn’t good enough to deserve it, even though it’s the right of every creative, supply costing business owner to do what they can to grow their business.
So I am finally a real business. It’s an amazing feeling to have some control and direction. And actually, I feel a bit grown up. 🙂
A few things I’ve done since then is write a book, and open a store.
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You look grown up too! I have that(stupid math brain) too, I just didn’t know it had a name. You did say some things that are making me think about getting a tax number. Great post!
My fear of taxes and stuff has kept me from being real, too. You’re lucky to have someone to lead you through it. Congrats!
Congratulations!
I am fortunate in having a boyfriend that understands creating businesses and such, as this is one end of things that I have no clue about. I haven’t taken this leap yet, but hope to do so in time.
As for the kiddies at the wrong location – my son goes to a community college for classes which is almost next door to the preschool my nephew attended last year where I’d often pick him up. Twice I’ve pulled up to the preschool parking lot to let out my 18yo. YIKES!
Yay, Jen!
I’ve been tax exempt for a couple of years now, but I found it to be a royal pain in the butt. I almost never use it for purchases, and since I’m not selling, it’s sort of a non-entity.
But for you, I think it will be a real blessing. Congrats!!!
XOXO,
Anne
Congratulations! I am so happy for you!
Good for you! With a good accountant the tax thing is not that hard to figure out. Congratulations Jen!
Congrats on becoming a grown up! My mom is a CPA, I’m pretty decent at math, and tax stuff still scares me….it’s all so confusing and no one really gives you a straight-forward answer. I’ve never been great at keeping records and receipts and writing down mileage. I love your blog..I’m a new follower. thank you SO much for stopping by my blog.
Congrats! I’ve just started selling locally (as opposed to just Etsy) and I’ve thought about this but I’m with you – I was an ENGLISH major, not a math major! lol Guess there’s no time like the present!
xoxo
Kathy
Good for you and GOOD for your sister in law!! I glaze over as well with IRS stuff, I keep pushing it aside, not wanting to think about all of that whenever I begin to really sell anything. I work better with people explaining things to me!
xo
lynn
p.s. I quit helping my child with math by 4th grade!!
Congratulations! When I get there with business I will be turning that aspect over to my future SIL! And Husband.
hee:) love this post. i can relate. i feel your pain. yay for your dear sil! i hope this is a huge benefit to your business…
mary
I’m so proud of you Jen!! and you are one of the least stupid people I know when it comes to both common sense and book smarts 🙂
have fun this weekend btw!!!!
Yeah!! Think of all the fun things you get to buy wholesale:) Yes, it can be a pain to deal with the paperwork each month(in the past I did it myself but now I have an accountant do it) but you’ll get to purchase items at such a reduced cost it’ll make up for it! Have fun and congrats!!
XO Traci
Yay! Congratulations! I know what you mean about paperwork stuff — I did well with math, but I still glaze over when I have to figure out some kind of business/accounting mumbo-jumbo. So glad you were able to get it done and get your cool discounts!!!
Best,
~Anegla~
Good for you Jen. Your success and great business dealings will only continue to be blessed, as you run your business honestly and profitably.
The savings are great for sales tax and wholesale purchases too, but imho it’s the honest way to be running our lives. I’m afraid there are millions of home run businesses that are literally earning their livings without paying towards taxes, etc. Not really fair to those that work extra hard to make up for the fees/taxes to the IRS, etc., to do things right. May be part of our countries problems too. I admire you for your example of doing the honest thing, once that hobby changed over into an actual profitable business and to do as you’ve done and set it up as a business and than sharing on your blog is so awesome. May the Lord bless you and your business for being an example.