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Business or No?
I'm going to be creating a website soon where I'm selling a product.
Something similar to birchbox.com, but more personalized and more than make-up.
Would this be a business? Would I have to do taxes or any other special businessy things?
I wouldn't be charging taxes, just a flat rate.
Is it illegal to buy products from companies to send them off to someone else? It's not like I'd be reselling specific products...
It would be like shopping for a gift for someone... except they would be strangers and I'd be doing it over and over again.
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Please do more research. I'm in business, and I can tell you if you don't know this in the competitive world of business, it's not looking promising.
I'm not trying to be mean-but it's because I WANT to see people make a success of their business.
You need to register your business with the business directory-you never said which country you came from, but I guess it's the same in America as in the UK.
Once you've done this, then yes this will be classed as a business.
You'd have to sell the idea to the businesses you'd be purchasing the product from.
Like a pitch, you'd have to write to each company and offer a time and day to discuss a new business partnership with them. They may give you loyalties if it works out, but you have to ask them, because theres things like reputation to consider, and also whether they feel they want to associate their brand with a new venture.
When you visit them, be sure to bring with you a detailed business plan. You need to prove that the business will work, and that they'll profit at the end of it from customers visiting your website.
It terms of the idea, I think it sounds like it could work-you've hit the nail on the head when it comes to selling to the ever expanding online market.
So next steps: Specialize. Find a target market to sell to-if its makeup-what kind of women? Once this is established, look to getting advertising deals with, for now, local magazines/papers also targeted to that market. Good luck, please contact me for any more help by the inbox :)
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I think you need to do a lot more research before you start, including speaking to a lawyer or someone who specializes in helping entrepreneurs start small businesses.
As for your first question: Yes. This would be a business, you might need a business license and it would certainly have an effect on your taxes. It's best to have an understanding of your responsibilities before you make a sale.
Depending on your state, you might not be able to 'not charge tax'. Most states will require you to collect sales taxes from the state where your business has a physical presence.
Although you generally have the right to resell anything you legally acquired, there are some restrictions on certain types of products (cigarette, food and in some cases: makeup) and there are companies who will make your life miserable if you do (generally by enforcing trademark and not allowed you to use images, logos or slogans associated with the product - thereby making it difficult or impossible to list.)
You need some professional advice from someone who knows the rules in your state.
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