Starting your own jewelry business isn’t easy. I say this partially from the design aspect, but also from the official ownership perspective. There’s no how-to guide, and if you don’t have the right people around you it’s tough to know what steps to take, and the order you should take them in.
I have everything set up officially as I needed to, but there were certainly bumps along the way. I hope my bumpy experiences can help make yours a bit easier. If you’re interested in starting your own business, here are five important steps you should take to set your business up.
#1: Look Online:
I’m speaking from first-hand experience when I tell you that changing your business name after the fact is difficult. Skip this step and research if there’s someone operating in the country with your business name. If it exists, find something different. This will help you make sure you can claim the accounts on social media, you can claim the website URL, and most importantly that you can skip the need to change official government paperwork in the future.
Another good place to look is in the US trademark database; if another company has trademarked your business as a phrase, you will also want to find something new.
#2: File with the Secretary of State:
Depending on which state you live in, this will look different. But the first step is to making your business official is to file with your Secretary of State. This is an important first step because it will provide you the documentation you need for the future steps you’re about to take, and filing the initial paperwork is key if you want to establish bank accounts, create tax license accounts, and operate as an official business.
#3: Apply for an EIN Number from the IRS
If you want to operate as a business, you’ll need to apply for an EIN number from the IRS. This is a business number that operates in the same way that your personal social security number does for your business. An EIN number is important to get for opening a business banking account and including with your sales tax license account (just to name a few important uses).
#4: File for a Sales Tax License
The state sales tax license is gold as a jewelry business owner. This small piece of paper will get you into most of the shows in Tucson, will allow you to buy supplies tax free, and will officially mark you as a business. It also means that you’ll need to file taxes annually and make sure you pay the appropriate sales taxes to your state. You will also need to pay to have it renew (this is bi-annually in Colorado, but could be more frequently depending on the state you live in).
Once you have your state sales tax license, don’t forget to also apply for a county and city sales tax license as well. These are important to both charge and pay annually as well.
#5: Purchase a Domain and Reserve Social Media Links & Accounts
Since you did the research to make sure your business name was free, make sure you claim it before another savvy business owner does. Pay to buy the URL you want and lock down the different social media accounts that correspond to your business name. This doesn’t mean that you have to immediately set something up, but taking the initiative early will ensure that nobody else takes the names before you can set it up.
I hope these tips can help set you on the path towards success for your jewelry business. What other steps have you encountered that would be helpful for first-time jewelry business owner’s to know? Share them below.