I make jewelry myself and i'm hoping to sell them online.

1. The formation of an LLC is legally speaking, the creation of an entirely new person. By forming an LLC agreement, you establish in a very real sense a new and concrete person, legally speaking, for the state and federal government to deal with in financial, tax and legal matters.

2. Everyone pays taxes based not on their name but on their Social Security Number. We are issued these at birth or upon gaining our citizenship. But neither of these events take place for businesses. So for your business to pay taxes seperate from you, you must obtain a new Social Security Number, a Federal Tax ID.

3. Every time you sell something, you must charge sales tax. This is law in almost every state in the country. But even if you don't, to purchase an item free of sales tax from an out of state wholesaler, you will still need the appropriate number, which can only be obtained from the filing of what is normally known as a Sellers Permit.

4. Starting a business is all well and good, but it is not actually legal. Not until you go to the city, and get a piece of paper from them saying it is. Now not every city requires that piece of paper, but it is not worth it to find out after the fact that you needed that piece of paper and didn't get it.

I'm hope to expand to anywhere and everywhere in the world.

I work from home and I work alone.

I live in Chicgo IL

I have no employees and no partners.

To run your business properly, you will need the following items: An LLC, a Federal Tax ID, a Sellers Permit, and a Business License.

1. An LLC is the most effective legal form for your business, and satisfies the federal, state and local requirements for business structure. As such, it is ideal for your situation.

2. Pursuant to your LLC, and in fact even in the absence of it, you will need to file with the IRS with an identifying number for your business for tax purposes. This is where your Federal Tax ID comes in.

3. As you sell taxable items, and will want to purchase items wholesale to save money and grow your business, you will be required by law to file for a Sellers Permit.

4. Finally at the bottom of the scale, you are required by city and local law, as well as state and federal law, to obtain a business license, also called a business tax registration.

03 - Because you are selling jewelry which is a taxable item, here are the licenses and tax ids you are legally required to obtain before starting jewelry operations:

1. A business tax registration license

2. A DBA assumed business name is required because your jewelery business has a trade name.

3. A federal tax id number also is required in most state for those that they get a seller's permit, and if you are a partnership or you want to use it instead of you social security number to open a bank account.

Also, note that forming an llc or incorporating eliminates the requirement of getting a dba. It is a good idea to form an llc to avoid personal liability from business transactions. Since you are dealing in gems and jewelery items, they are taxable items, you will need

4. A seller's permit.

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1. The protections offered by an LLC are important for a very simple reason: Insulation. For example: Let us say you sell a piece of jewelry that is defective in some manner. Someone is hurt by this piece of jewelry in a way you could not foresee. Laughable yes? Except that people are finding new and exciting ways to hurt themselves every day. The problem is that they sue you. Now without an LLC, you personaly are on the line. But with an LLC, only those assets you have entrusted to the fictional person of the LLC are at risk, and all the money you as an individual are safe. You may lose the business, but you keep everything else.

2. Now a Federal Tax ID is essential for two reasons: First, without it, you can never take on an equal partner. They will always be subordinate to you as your social security number will establish you as the primary holder of the companies assets. Two, once you have it, it cements the seperation of the business and its taxes from you and your person.

3. Now the consequences of not getting a sellers permits are a combination of stick and carrot. Theres the audits and fines and penalties and taxes on money you don't have, but there's also what you miss. Every new busines, along with every other business, benefits from the savings of being able to purchase goods tax free from wholesalers. Missing out on that simply isn't worth that.

4. The cost of not obtaining a business license will ruin your efforts in obtaining all these previous filings. The first step the local governmjent will take is to fine, audit and tax you for failing to obtain your license at the right time. After that, they will move swiftly to initiate a simple police closure of your business.

Simply go online to http://www.businessnameusa.com/services/fees.htm to determine your fees on a state by state basis.