How to Start Your Own Retail Handbag Business
Launching a small business requires a great deal of self-motivation and dedication. If you want to sell handbags in a retail store setting, you must be prepared to invest both time and money before and after the launch of your store. Paperwork and fees must be processed and filed at local, state and national levels to ensure your retail handbag store opens for business in complete compliance with ordinances, laws and tax codes.
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Instructions
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Find a retail space for your handbag business. Ensure that any property you rent or buy is zoned for commercial retail use, or can be converted to a commercial retail zone. Different areas may use slightly different terms for zoning types, but explaining the nature of your business to your county or city's zoning authority will ensure that you know the proper terminology for your area.
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Contact your local clerk of court's office and inquire about local business permits that your handbag business may require. Not every small town requires permits for businesses, but it is best to speak with the county and verify this. The county office in charge of permits can vary depending on the size of your city or county, but the clerk can direct you to the proper agency.
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Pick a business structure. Sole-proprietorship or Limited Liability Company (LLC) structures are commonly used by independently owned businesses. Considering the upfront investment required to start a retail handbag business, an LLC may be best, as this structure separates your business debts and responsibilities from your personal finances.
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Register your LLC with the Secretary of State's office if you choose this business structure. Most states require an LLC filing fee and the filing of articles of incorporation.
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Obtain an Employer Identification Number from the IRS. This number is used in place of a Social Security Number when you file income tax returns and other types of paperwork that would require a SSN. An EIN is also used to submit payroll taxes to the IRS if you choose to employ others within your store.
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Apply for a state sales tax permit from your state's Department of Revenue. This permit allows you to collect state, local and city sales tax. Taxes are remitted to the state on an assigned monthly, quarterly or yearly basis, and the state then processes bulk payments to local governments and cities.
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Acquire your handbag stock from wholesalers, local artisans, consignments or through estate liquidations. Your store may also incorporate a mixture of all of these acquisition methods in order to carry a diverse offering of new and old handbags.
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Prepare your retail handbag location for launch by creating handbag displays, marking prices and displaying appropriate signage throughout your store. Ensure the atmosphere will appeal to your potential target market.
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Launch your business and a simultaneous advertising campaign, featuring ads in local publications or media outlets. Immediate advertising lets people know your store has officially arrived, and the type of merchandise to expect within the store. Include in ads a few brand names or handbag styles your store carries, to draw in customers.
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Maintain precise records relating to both sales and expenses. Remit your state sales tax payments on time. Submit quarterly estimated tax payments to the IRS, should your store's sales receipts require it.
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