Your Questions About Internet Business For Sale
Linda asks…
what kind of insurance will i need for my catalog sales business?
I am starting a home based catalog sales and internet business selling clothing and accessories, what kind of insurance will I need to purchase for this type of business?
Jere answers:
You should look into liability insurance for your business. Your home insurance policy likely excludes a home based business. Your home insurer might have a home based business insurance rider. But many companies do not offer home based business insurance for internet sales so you might have to look for a commercial general liability policy.
Good luck with your business!
Robert asks…
Can I declare the sale of an internet domain as a capital gain?
I recently sold the internet domain and business I had developed over a two year period. It’s arguable whether the value of what I was selling was primarily the domain name itself or whether it was the business and the small revenue stream the website was starting to generate. Can I declare the sale as a capital gain? If so, what do I call the purchase price? (the $8 registration I intially paid?). Or do I somehow add up the assets of the business which I sold? Or do I have to declare the business sale as regular income? (it was not incorporated in any way).
I need an answer for both US and Canadian taxes as I have to file in both countries.
Jere answers:
With the sale of any business, your basis in the business is determined by adding the value of the assets of the company. The sales price less your basis would then constitute your gain on the sale of the business. If you have owned the business for more than a year, then it will be considered a long term capital gain. This applies for the US, and I assume that it would also apply to Canada as well.
Betty asks…
Register the business and get sales/resellers licence for starting a home based internet business?
Hello,
I am interested in starting my own home based internet business selling phone accessories on a professionally designed website.
However, I am curious if I would need to register my business and get myself a sales licence/resellers permit.
Can someone enlighten me?
Thanks in advance! (:
Jere answers:
Yes, you will have some ‘hoops’ to jump through to be recognized as a business operating legally and of course the government has to keep track of your income, which they do by assigning you a EIN number.
Assuming you are in the U.S., here is a link to a page at the Small Business Administration that contains, by state, links to advise you of the licensing requirements according to your location.
Hope that helps.
Susan asks…
Cany anyone assist me..I need help writing a slogan for my internet business?
I am trying to improve my sales on the internet and would like to add a catchy phrase to my business. I sell rodeo equipment, horse tack, and can make practically anything in regards to horse related items and have a good track record for creating quality products, in a short amount of time. Help? my brain is fried and need assistance in creating such a slogan. Any ideas would help, Thanks.
Jere answers:
“Need best quality horse’s stuff at an affordable price? Get it from us–straight from the horse’s mouth!” 🙂 or “Horses can tell. We sell best quality stuff.”
I don’t know if it makes sense. I’m also running out of idea.. But I’m sure, this will contribute to your idea in formulating your advertising phrase. The more unusual your phrase is, the more catchy. Just consider the relevance added with a pinch of foolishness. That’s how advertising works.
Sandra asks…
Does having a pt home business prevent short-term dis benefits?
I have a full time job but am contemplating going on short-term medical disability for a few weeks. I have a part time internet sales business that I do report to the IRS. Since the home business is ‘income’ would it void me from the disability payments?
Jere answers:
Yes, you do have to report all sources of income. As well, if you claim disability, you have to establish why you are medically unfit to do your work duties but are capable of working your home business. Good luck!
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