And today I’ll be discussing how to register your business (so you can start shopping) and how many items you should start off with....this blog post will be a long one, just FYI.
How to Register Your Business
Just FYI, I live in Texas, so this information is based on what is required of business owners in Texas. If you are living in another state, please check your state’s website for business registration information.
Okay before you decide to register your business, you need to understand that with a business permit comes responsibility. First and foremost if you are selling tangible items Texas requires by law that you have a Texas Sales Permit.
Having a Texas tax permit will allow you to make wholesale purchases, as wholesalers often require one to open an account with them; it allows wholesalers to charge you for the cost of your merchandise without tax.
The permit also means that you’ll be reporting your earnings every quarter and paying required taxes on said earnings.
Having a Texas tax permit will also allow you to sell at farmers markets or other events. Some markets will not allow you to sell unless you are a registered business; some will, but if for some reason that market is being audited that day, officials may ask for your permit...
To apply and obtain a Texas Sales Permit you can go to the link below:
You must be 18 years or older to apply, if you are under the age of 18 your parents/guardians can apply for you. It takes 2-3 weeks to receive your permit in the mail, but you will obtain your permit number which will allow you to start buying for some wholesalers. Oh and there is no fee to obtain your permit.
If you already have a running business where you make more than $600 a month, I highly suggest you obtain your ID ASAP. I’ve recently gotten questions on how to report your earnings on your taxes if you have a running business but no tax payer number. I am no tax expert, but you can still report your earnings as a self-employed individual, if you are being asked for a tax payer number or EIN you can use your social security number if you have yet to register your business...I do recommend you contact a tax expert for these questions though.
Next, you’ll need to register your business name in your city...
To register your business name, you can go to the link below it's a PDF that gives you info on how to register your business name here in El Paso which includes fees and costs.
You need to call the number listed on the PDF so they can direct you to the application, there is a fee, and it's all done via mail due to the pandemic.
Once you have these two documents, you're open for business.
The assumed name allows banks in El Paso to know that you are a registered business, if you want to open a business account, they require your ID, Social, Assumed name certificate and texas tax permit.
After you have these documents I highly suggest you open a business account, I personally opened mine with a credit union, as credit unions do their best to invest and serve the city you live in. Obtaining a business bank account will be essential for your website and for your business PayPal account which you will definitely need to register for.
Okay! I think that is about it! But if there is anything I may be missing or questions you may have regarding legalities please send them my way by commenting on this post or sending a DM @pursefind on Instagram.
Moving on to the next topic!
How many items to start off with...
Okay, if you are looking to open a boutique of some kind, whether it’d be accessories, make up, hair stuff, etc...often times we find ourselves wanting to open up a business offering ALL the items!
Although that’d be great, if you are starting your business on a budget, meaning you’re literally starting from ground zero, you probably do not have the funds to literally buy EVERYTHING....so the best thing to do is focus on one good product before you expand.
Here’s my story for example,
I only had my tuition savings to work with, which wasn’t much tbh. I knew I wanted to do purses but I had also seen so many other cute accessories, like sunglasses, cute t-shirts, oooh maybe make up...you name it I wanted to offer it.
However, it’s a little hard to figure out which of the many products would be a hit, and the last thing I wanted was to be stuck with a product that just didn’t catch anyone’s attention.
So I focused on purses. I decided on purses because it’s a product I personally love, it’s a product that is likely to be used often, and there are many cute variations of it. I began by choosing five models.
To select my models I used good ol’ instagram polls and posted various models to ask friends and family which ones they thought were fashionable and most likely to buy.
To start, I purchased 5 purses of each model. I wanted to be conservative with my first purchase, because although I had done my research and believed in the product, I still knew that there was a potential for me to end up selling no purses and being stuck with them.
And it went from there, after I sold my first box, all of my profits went back to my business, and I purchased another box of purses, and little by little my orders became larger and larger and here I am today. It is important to note that if you want your business to grow you can’t use its profits for personal use, THEY MUST GO BACK INTO THE BUSINESS.
I have been officially in business since June 2020, till this day I have never used any of my profits for myself. Those are PurseFind’s profits not mine, the reality is, that most of you will not only be working on your e-commerce business, you’ll also need a job to be able to pay for your personal expenses. Some of you will be teachers, baristas, waitresses, work in sales, etc, etc by day and entrepreneurs by night. It is what it is. You have to be willing to put in the work, and be patient with its growth.
My goal is obvious, for PurseFind to grow into a fine boutique here in El Paso, TX, and the only way to do that, is to be patient, and continue to put all the money back into the business.
As PurseFind began to grow, it wasn’t until January 2021 that I decided to introduce a new product, which was jewelry.
Starting with one item gives you more control, it also allows customers to know you well for your product and will later trust you when you offer new ones. You want to choose a product that you’re well acquainted with, and like managing.
That’s about it for today!
Thanks so much for sticking around and reading through!
XOXO Salma A.