Answering Your Legal Questions About Your Small Jewelry Business

If you’re talented in creating amazing pieces of jewelry that everyone who sees wants to wear, you may be thinking of making this a business. While the stock is definitely an important part of your business, you should also consider the legal aspect of your business. This will enable to operate within the law and get the best outcome. If you’re wondering about what exactly is entailed by this, read on to have some of the questions that you may have answered.

What Business Structure Should You Register As?

As you probably know by now, there are different legal business structures that you can register as. These include solo companies and limited liability companies. These two are the most common structures that people register as. The one that you choose depends on your size and projections for the future of your business. That said, registering as a limited liability company is by far the best option to choose since this structure offers some security to you.

When you register as a limited liability company, you may enjoy certain benefits that aren’t available for other business structures. These will be specific to the state in which your business is registered. Each state has its own specific details as far as taxes and business expenses go. For example, in Delaware, in addition to not having any sales tax, you can enjoy tax friendliness thanks to the low-income tax rates. These are between 2.2% and 6.6%. There are also no vehicle taxes, and you can enjoy some of the nation’s lowest real estate tax rates. Find out the specifics of your state’s laws and you may be better placed to make this decision.

What Licenses and Permits Will You Need?

Next, to be able to operate legally, you must get the necessary permits and licenses. These include a general business license, which is required by all states. Some states require a seller’s permit on top of this, and it’s also called a sales and use permit. If you will have a physical location, you must also have a certificate of use and occupancy. This may not be necessary to look for if you lease a space, since your landlord will likely already have one.

Depending on the jewelry with which you will be dealing and if you have suppliers, there will be additional licenses that you need. Something like diamonds may call for additional legalities given their high value and sensitive nature. Diamonds, which rank 10 on the Mohs scale, are the natural world’s most concentrated form of pure carbon. They’re also earth’s strongest mineral, and this may help point to why they’re so sought after.

How And Where Will You Get Financing?

Finally, given the fact that you will need to find operating capital for your business, it’s important that you get your financing in order. This could help save you from running into trouble with your finances, something that could have a far-reaching effect. The business structure that you choose can help keep your finances safe in case of business failure, something that you may not be able to predict.

Ensuring that your personal finances are secured could help you declare bankruptcy, which may allow you to reorganize yourself and plan for a comeback in the future. Keep in mind that Chapter 7 bankruptcy enables a person to have their debts discharged in a period of 90 days. When you have such information, it may be easier for you to operate with more peace of mind, running your business successfully.

These legal questions should help you make the right call as far as running your small jewelry business goes. Make sure to work with a professional throughout the process so that they can explain any unfamiliar terms to you. With a good partner, you have a better chance to scale up.