Woodworking business

Hello, I am new to this group and I'm planning on starting a WW business soon.(2004)
Can anyone else who has gone through this recently give me a few tips.
I'm aware of the sales tax licence, but, does this enable you to purchase raw materials w/o paying sales tax? How does this work with local home centers? Is this what the 'contractor desks' are for?
Also, I have purchased a good number of tools this past year (and last) and was told there is a way to 'bring them into the business' as a cost to the business (and depreciate them). Has anyone done or heard about this? Details?
I live in the state of Pennsylvania if that matters.
Any help or useful links would be much appreciated,
Rich
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Rich wrote:

There are three people that you need to know when you're starting a business: a banker, a lawyer, and an accountant.
Between the three, most common questions can be answered.
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I'm assuming you're going to incorporate. The best way (IMHO) to get your tools into the business as a liability to the business and an asset to you personally is for you to lease the tools to the company.
This serves quite a few purposes - the tools can't be listed as an asset in a lawsuit since they're leased to the corp, the'yre an immediate expense to the company (cost of doing business) and will help offset the company's income at the end of the year, and as part of your lease agreement you can state that the company is responsible for the full replacement cost of the tool should it break...etc...etc..
Sales tax license - at least here in Texas...allows me to buy at wholesale prices without paying sales tax - that is, assuming I'm going to re-sell the stuff. Otherwise, I must pay taxes on what I purchase.
BTW - I'm not a lawyer, this isn't legal advice, yadda yadda yadda..just thought I'd give you my .005 cent.

purchase
the
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There is no need to incorporate a small business, especially here in Pennsylvania. A sole proprietorship is all you need beside liability insurance. Also, change your truck to commercial insurance, here in Pa your rates will be lower, and the cost difference will pay for your liability insurance.
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Rumpty

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Hi Rich, There has been a lot of discussion on this topic in this group. Suggest you go here and type in "woodworking business". Cheers, JG
http://groups.google.com/groups?hl=en&lr=&safe=off&group=rec.woodworking
Rich wrote:

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Yeah, don't be tempted to live off of your credit card when times are slow. Also "Price Dictates Quality" so don't be afraid to price your work properly.
See: http://pacrafts.com /
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raw materials w/o paying sales tax? How does this work with local home centers? Is this what the 'contractor desks' are for?
Yes, as long as you use the material to make a finished product. You "can't" use your resale certificate to buy material and not pay the sales tax if you use the material in your own home or even your shop and it's not for resale.
I've seen contractors buy materials at the regular register in HD, show their exemption/resale certificate and not pay the sales tax. Ask at the BORG for their policies.
If you are starting say a furniture business, you shouldn't be buying your material at the BORG.
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On Tue, 16 Dec 2003 08:58:23 -0500, "Rumpty"

As demonstrated years ago by Leona Helmsley. <G>
Barry
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Go to your local bank and ask them what they require to open a business checking acct. I've used my regular household checking account for years, it's called a dba "doing business as" account.
To get your resale certificate from Harrisburg, you'll need some sort of legal business name. Go down to your county courthouse and stop by the "Prothonatory Office" they have the forms etc.
See: http://www.state.pa.us/papower/taxonomy/taxonomy.asp?DLN )888&papowerPNavCt r=|29965|#29965
What type of business are you starting?
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Here is a shorter URL: http://tinyurl.com/zidt
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Rumpty

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Check this link out and see if their show is on your local PBS station:
http://smallbusinessschool.org/webapp/sbs/sbs/index-ns.jsp?Size 24&Speed=2 50
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Check out Small Business Administration at www.sba.com
I'm considering the same thing, here in PA. Can't take the (current) day job to much longer.
Ron
Subject:Re: Woodworking business Date: Tuesday, December 16, 2003 8:52 AM

There is no need to incorporate a small business, especially here in Pennsylvania. A sole proprietorship is all you need beside liability insurance. Also, change your truck to commercial insurance, here in Pa your rates will be lower, and the cost difference will pay for your liability insurance.
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"Rich:
I can't answer you questions directly, but I hazard that if you contact someone you know in woodworking they might be able to steer you right. Also, go down to your local Chamber of Commerce they will have a lot of literature about starting up a business as it relates to licenses, taxes, etc. Also, see if there is a local chapter of SCORE nearby - this is a volunteer organization of retired execs who help out small business folks for next to nothing. There's got to be someone nearby, perhaps in the largest city near you.
Finally, I also suggest WorkShop News - a publication for and about woodworkers who work wood for money. Good articles about hiring, taxes, etc.
Good luck!
MJ Wallace
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Did you mean WOODSHOP News?
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"RWM" wrote:

Yep, slip of the fingers! Thanks for pointing that out don't want the guy to go crazy looking for the wrong publication.
MJ Wallace
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