As you move forward, it is important to formalize your business and make sure you have legal aspects to protect yourself in place.
Business Startup Checklist - use this to help you make sure you take all the necessary legal, state, local, and basic steps to launch a business
The default city is Lowell, you'll have to look up for your town/city
You will have an option to formalize by establishing a business structure. Learn more about the variety of business structures HERE from the Small Business Administration.
You can follow step by step what is essential to establish by reviewing this page from the Mass.gov website HERE.
Choose formal structure
Understand tax obligations and register to pay taxes (learn more HERE)
Get a business certificate in the city/town where you are established. Find out more by contacting your city/town or HERE.
Apply for EIN number HERE
Get insurance for your business
IMPORTANT NOTES
It is highly advised that you meet with a tax accountant to determine which formation is best for you in your situation. Additionally, you may want to meet with a lawyer to discuss any potential liabilities your business may have that you will want to protect yourself from. For example, if you are a food business, this is a high-risk busines that should have liability protections in place.
Do not pay for an EIN number. There are a lot of websites that say they will do it for you for a small fee, it does not cost money and you can do it yourself with the IRS, see link above.
Same goes for filing your business with the state. You can pay a lawyer to do, or you can do it yourself.
Contact several insurance companies to get a good sense of coverage and costs for your industry.
If you are partnering with anyone, be sure to work out a partnership agreement first before moving forward so specifics about who does what and how much each will make in profit or worked out before any issues can occur.
Getting into Retail?
Double check local licensing. Reach out to your town or city's licensing board and/or economic development office to find out more.
You will have to set up a tax account with both the state and federal government (see info above)
Read the rules for resale and exempt use certificates here from mass.gov.
You will want to fill out and submit this ST-4 a Sales Tax Resale Certificate
Be sure to understand rules for selling online too!
Important to understand: If you are reselling things, you have a responsibility to take tax on it for the state, you are only holding that tax until you pay the state. Please review the tax page! Additionally, when you go to buy things to resell from a distributor or warehouse, you will not want to pay the tax, this is why you show them the ST-4. That will allow you to purchase from them without paying tax. You are essentially saying I will not pay it but the customer will. Then you are solely responsible for making sure the state gets the tax.
Beware, the state NEVER accepts "I didn't know I had to collect tax" as an answer for why you were not doing it.
Getting into Selling Food or Drinks?
Double check local licensing. Reach out to your town or city's licensing board and/or economic development office to find out more.
You will have to set up a tax account with both the state and federal government (see info above)
Make sure you understand the rules for food and drink here from mass.gov
Important to understand: If you are reselling things, you have a responsibility to take tax on it for the state, you are only holding that tax until you pay the state. Please review the tax page! You are essentially saying I will not pay it but the customer will. Then you are solely responsible for making sure the state gets the tax.
Beware, the state NEVER accepts "I didn't know I had to collect tax" as an answer for why you were not doing it.