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Getting your business
license to start a wig or
hair business. The quick and
easy guide.
To get wig
and hair goods
manufacturers, distributors
and wholesalers to talk to
you, send you catalogs and
wholesale pricing, you at
least need minimum
licensing. You need to have
a business license or Seller
permit (seller
permit FAQ) from your
city or county at least
under your own name. Read on
for more details.
If you
already have a business
license even if it is not
specifically for a wig shop
and hair salon but you are
expanding your business you
should be fine and not need
anything else. Suppliers
primarily need to know you
are licensed in order to to
sell products to you.
However, keep in mind, that
wig and hair suppliers want
to know that you are going
to be selling their products
successfully through a shop
that caters to their
clientele. If you are
licensed as a hardware store
they ignore you or may not
want to sell to you for
reasons that are fairly
obvious.
-
Step 1:
You can get
business license
under your own
name or you can
get one under a
company name.
The easiest,
fastest and most
inexpensive way
to get a license
is under your
own name.
However there
are some
disadvantages as
well. Read on.
Although getting
a business
incense under
your own name is
easier and less
expensive it has
its
disadvantages as
well. Think
about whether
you will want or
need to have
checks made out
to you. If you
will, and most
business do, you
may not want the
checks made out
to you personal
name. Do you
really want to
do business as
Jane Doe or is
Jane Doe
Enterprises or
Wig Enterprises
better for you?
To get a
license under a
company name you
will need to
file a DBA Doing
Business (DBA
FAQ) As also
known as a
"Fictitious Name
Statement." In order
to open up a
bank account
under a company
name or or to
get a business
license under a
company name you
will need to get
a DBA.
If you want to
work under a
company name you
are going to
want to write
down a list of
possible company
name for your
business. Do at
least 5 or even
10 because your
first choice or
even your second
or third may
already be in
use. When you
are choosing a
names
choose ones that
are easy to
remember and
tell people what
you do and what
products you are
selling.
You are going to
need make sure
that the name
you want is not
already in use
in your county.
Also, if you are
ever going to do
any business on
the internet you
need to check
there as well.
Make sure no-one
is using your
name already and
register your
domain name in
advance.
If you company
name is Wigs by
Galor you might
want to register
wigsbygalore.com
You can register
you domain for
as little as
9.00 per year,
Create a Web
Site with a
Quick Shopping
Cart
Hosting, and
Build and run
your own
successful
online store for
as low as 8.15
per month
Here.
If you don't
plan to sell on
the internet you
should still get
a simple one
page
"Advertising
Page" for your
business. It
will cost you
less than $25.00
per year and it
will help you
get a lot more
business to your
door.
Here.
-
Apply
for a fictitious
name statement. You
can get and fill out
the appropriate
forms at your
Country Registrar's
office. There is a
small fee that must
be paid when
applying for a
fictitious name
statement, but it is
under $100 in most
counties. Fictitious
name statements are
valid for five to 7
years years from the
application date.
You will receive a
DBA (doing business
as) statement in the
mail once your
application has been
finalized. To
completely simplify
the process for you
go here
DBA (Doing Business
As): fill out
the forms you need
for your county and
get it all done for
you. Visit the
DBA Education Center
for more complete
details
-
Open
a checking and
savings account in
your business name.
You may choose to
use the same bank
where you currently
have personal
accounts to save
time if you are
working alone. Most
bank policies
require businesses
opening accounts to
present their DBA.
-
Find
a physical location
for your wig
business. Enlist the
help of a property
management company
or realty firm to
help you find
available spaces.
These services are
generally provided
for free to business
looking to rent or
purchase commercial
retail space.
-
You
will need to know
which business
license or licenses
you need in order to
start your business.
You should also know
if you need a
Federal Tax ID (Fed
Tx ID FAQ) While you may want
to research the
requirements
yourself, most
people find it
impossible to do it
on their own. You
may contact you
local City Hall, but
that alone will not
help you determine
your licensing
requirements on the
county and state
levels, and vice
versa. Governments
do not offer a
one-stop-shop where
you can go and get
all your licenses,
permits, and tax
registrations. But,
you are still
required to have
them non-the-less.
Your first step in
to find out about
everything you need.
Find out about them
and even fill out
the entire
Business License
Compliance Package
for your city,
county, state and
federal right here.
-
Get
your resale license
from the State Board
of Equalization so
that you may
purchases wigs and
accessories from
wholesalers and
manufacturers and
sell them for profit
to customers. You
will need to provide
your resale license
to vendors on a
regular basis.
Resale licenses are
given to businesses
for free, but you
may need to show
that you actually
need a resale
license before one
is granted by the
state. Usually you
will only need your
business license and
DBA to complete this
process.
Find out about them
and even fill out
the entire
Business License
Compliance Package
for your city,
county, state and
federal right here.
-
Learn
to fit a wig and
even customize it
for your clients if
you do not already
know how.
While some
cosmetology schools
offer courses, most
people choose to
learn through
practice.
You
can find an
excellent 60 minute
wig styling video
produced by a
professional wig
stylist.
Here If
you are licensed you
can also purchase it
wholesale and
sell the video
Here
Also,
Wig and hair goods
providers often have
courses you can take
you so can better
provide service to
you customers and
sell their products.
There are 28
suppliers in the Wig
Industry directory
that Hair Products
and
Training as well as
Partnership and
Business Ops
programs
Here:
-
Find
wholesalers in your
area or that will
ship products and
supplies to you.
While ordering
online may be
cheaper, you need to
factor in shipping
costs before
ordering.
www.aaawigbiz.com
can help you find
manufacturers,
wholesalers and
distributors to work
with.
www.hairgoodswholeesale.com
provides a full wig
industry directory
of Manufacturers,
distributors and
wholesalers
worldwide.
For really
good general
information about
starting a wig and
hair goods business
visit:
Starting a Wig and
Hair Goods Business
General Startup
Information
|
Are you just
starting a wig or hair goods business? Find out
about the "Starting a Wig or Hair Goods
Business Guide" available soon!
Click Here for Info |
FAQ Questions and
answers about starting a
wig and hair goods
business
-
A
Seller's Permit,
also known as a
Sales Tax
License,
Wholesale
License, Resale
License, Sales
Tax
Certification
and Retail
License is a
permit to sell
or lease
physical
(tangible)
goods. You will
need one to sell
goods at the
wholesale or
retail level and
to collect sales
tax. It is
illegal, in most
states, to sell
or lease
physical goods
without a
Seller's Permit.
-
Do I need a
Sellers Permit?
-
If your business
sells or leases
tangible goods
or participates
in the creation
of tangible
goods, you need
a Seller's
Permit. For
example, if you
make a watch for
a specific
customer, you
are creating
tangible
personal
property.
Therefore, the
total amount you
charge for the
watch (including
the charge for
labor) would be
taxable.
However, labor
costs for making
repairs are not
taxable since
they do not
result in the
creation of
tangible
personal
property
(however any
sale on new
parts required
for the repairs
would be
taxable).
-
How long does it
take to obtain a
Sellers Permit?
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The State Board
of Equalization
takes
approximately
two weeks to
issue a Permit
that Signature
Filing has
filed. If you
need your Permit
sooner than two
weeks, simply
select the
'Application
Preparation
Only' option and
we will provide
you with
detailed
instructions on
how to obtain
your Permit in
as little as one
day.
Question:
I am a sole
proprietor. I am
registered in my
town. I have a
business account
that I just
opened up last
week. I am a
full time
teacher and my
business is
strictly part
time. I just
have a love for
hair since a
very young age.
I plan to make
wigs and sell
wigs through my
business. This
will be done
through my home
and online when
I get my site up
and running. Do
I really need a
resellers
license since I
do not intend on
having a
physical shop. I
do intend to
sell other brand
name wigs other
than my own, but
I don't know if
I need a
reseller's
license and how
to go about it.
I reside in XX.
Please help.
All in all what
I am trying to
do is be the
Avon of
wigs/weave, so I
am more of a
direct selling
company. I sell
through "wig
parties" like
how lia sophia
workers sell
through jewelry
parties. I am
the founder and
head of my
business and I
am currently the
only one running
it. Thank you in
advance.
Answer: I'm a
little confused.
It sounds like
you are already
licensed at
least locally.
Is that right?
Do you have a
business license
from your county
or city? If you
do it should be
no problem. It
just that you
listed yourself
as a new
business and
didn't put down
any licensing
info.
Here is what the
suppliers need
in order to send
you catalogs and
wholesale
pricing -
in most cases -
if you are a US
business and
they are also a
US business.
A business
license. It
doesn't need to
be for a
wig shop but can
be under your
own name. With
the exception of
foreign
companies in
China or
elsewhere, most
all companies
require you to
be licensed for
2 reasons.
-
As far a the
laws go -
and some
people do
ignore those
- and get
away with
it. You need
to have a
resale
license to
buy and sell
products.
The reason?
You are
required to
charge and
collect
taxes.
-
What you do
on the
resale
license is
up to you
however.
Most
suppliers
don't need
to see that
or care.
They do want
you to have
a business
license
before they
will sell to
you or even
give you
wholesale
information.
They are
required by
law, on the
one hand, to
sell to
licensed
individuals
only, and on
the other
hand, if
you are not
licensed
they think
you are a
consumer.
The real
suppliers
don't work
with
consumers.
They leave
that to the
retailers.
One exception
that can can
often be found
on the internet
are the
discounters.
They are not
manufactures,
distributes nor
wholesalers of
wigs and hair
goods. They
often retail the
products and
sometimes say
they sell
wholesale. They
don't care if
you are licensed
or not. They
want to sell you
the products and
the rest is your
problem.
However, they
also don't give
you good deals.
Often, instead
of selling
wholesale to you
they are giving
you only a
discount on the
products which
often is far
above wholesale.
The rule of
thumb is: if
they don't need
to see your
business license
they are
probably not
really selling
wholesale or
are a foreign
company even if
they are showing
a US address on
their
website. Chances
are very good
they are not
paying US taxes.
There are of
course
exceptions to
every rule but
those are few
and far between.
A few retailers
actually sell
slightly above
wholesale and
they are a good
source if you
would otherwise
be buying very
small quantities
from various
manufacturers.
We tell you who
these
wholesalers are
and tell you a
few to avoid at
www.hairgoodswholesale.com This is the
Wig & Hair Products Industry Directory of
Manufacturers, Distributors & Wholesalers
I hope this has
helped explain
what is going on
ands why.
-
A
DBA "doing
business as" or
FBNS "fictitious
business name
statement" is a
declaration to
the public that
a business
intends to use a
business name
(also known as
an assumed name
or trade name)
that does not
include the full
legal names of
the
owners/partners.
In some states
this statement
needs to be
filed with a
local government
agency and
published in a
newspaper of
general
circulation in
the area in
which the owners
intend to
conduct
business. Also,
besides being
required by law
and a service to
the public, you
will need a DBA
Certified Copy
to open a bank
account and
accept checks
written to your
business.
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How do I know if
I need a DBA?
-
Because a DBA is
designed to
inform the
public, one
would need to be
filed for any
business name
that does not
fully disclose
the identity of
the owners. For
instance John
Smith &
Associates would
to need to file
a DBA because
their business
name implies
additional
owners. AAA Auto
Repair would
obviously need
one as well.
However, John
Smith Auto
Repair would not
need to file a
DBA as this
business name
contains the
full legal name
of the owner. A
corporation, LLC
or other
business entity
registered with
the state would
file a DBA for
any business
name other than
the one on their
Articles of
Incorporation.
-
When should I
file a DBA?
-
A
DBA statement
must generally
be filed before
using your
business name in
the operation of
your business,
and in some
cases within
30-40 days of
your first
business
transaction. In
some states a
DBA needs to be
refiled every 5
years or within
40 days of an
address change.
A business name
may not imply
that it is state
registered
organization
unless it
actually is. For
example, John
Smith cannot
file a DBA for
AAA Auto Repair,
Inc. unless he
has first
incorporated
with the proper
state agency.
-
What protection
does filing a
DBA afford my
business?
-
In most states,
DBAs, unlike
corporations or
LLCs, do not
guarantee
exclusive use of
a name. In most
cases, the state
or county will
file any
correctly
prepared
fictitious
business name
statement,
regardless of
name conflict.
However, a DBA
does establish a
paper trail that
could be useful
in a lawsuit.
-
A
Federal Tax ID,
also known as an
Employer
Identification
Number (EIN) or
a Taxpayer
Identification
Number (TIN), is
an
identification
number assigned
to your business
by the IRS
designed to
identify your
business to
federal
agencies.
Similar to how a
SSN is issued to
an individual, a
Fed Tax ID or
EIN is issued to
a business.
-
Am I required to
have a Federal
Tax ID/EIN?
-
A
business will
need a Federal
Tax ID if it has
any of the
following:
employee(s);
operates as a
corporation or
partnership;
files an
employment,
excise or
Alcohol, Tobacco
and Firearms tax
return.
Basically if a
business has any
employees, it
needs a Federal
Tax ID. However
if the business
is operated
solely by the
owner or a
single member
LLC, then the
owner's SSN may
be used and a
Federal Tax ID
is not needed.
-
What are the
practical uses
for a Federal
Tax ID/EIN?
-
You can use a
Federal Tax ID/EIN
in order to open
a bank account,
apply for
credit, fill out
W-9 forms for
clients, and
file your tax
return. Even if
you don't need
one, most
business
advisers
recommend you
get one and use
it instead of
your SSN.
|
Are you just
starting a wig or hair goods business? Find out
about the "Starting a Wig or Hair Goods
Business Guide" available soon!
Click Here for Info |
|
