Ask Me Help Desk - Starting a thrift store

I would like to start a thrift store. I already have commercial buiding and items to sell.
I would like to know how I need to set it up legally. What are the tax laws?
Thank you :)

Best to get an accountant and a lawyer on board to put together a nonprofit corporation for you. That way you can receive future donated items as a tax write off for your customers who donate. If your total income is below $25k annually, you won't have to file a 990 (annual tax return for nonprofits - no money involved, just information). To run your books, Quickbooks makes a great nonprofit edition I have used. If it turns out you take in more than $25k, it will come in handy for compiling the necessary figures for the 990. And its easy to pay yourself or any employee wages too. If your state charges a sales tax, Quickbooks makes that super easy too. Good luck!

Quote:

Originally Posted by little treasures

I would like to start a thrift store. I already have commercial buiding and items to sell.
I would like to know how I need to set it up legally. What are the tax laws?
Thank you :)

See an attorney, an accountant and an insurance agent. Attorney, perhaps working with an Accountant, can tell you whether to set up as a corp, LLC, partnership, sole proprietor and the tax implications of each. Of course, you need a business license from the city, county and/or state where the business is located. Various kinds of insurance may or may not be needed, i.e.. There's risk of someone falling in your retail outlet, etc, may be your fault or may not, so you face a liability exposure, then risk of fire, flood, vandalism, employee dishonesty, so you want to protect your bldg and it's contents as well as maybe loss of income due to those perils. Finally ask your wife if she minds you working seven days a week! Seriously, treat the business as though it were like a family, the bldg is your home, the contents of the bldg are much like the contents of your home, so the insurance needs are much like those needed by a family unit, hope you get my point.