How to Turn Your Boutique into a Business on Poshmark
If you're ready to turn your Poshmark boutique into a full-time business, here are some you'll need to investigate to get the ball rolling.
GET BOUTIQUE CERTIFIED
The first thing you'll need to do is to get boutique certified. The way you get certified is to have at least 10 successful sales under your belt, buy inventory from the wholesale market and complete the in app certification form.
Once you're certified, you'll have to make the decision of how big you want to be. If you have a goal of making Poshmark your full-time career, You'll need to do some homework.
GETTING A BUSINESS LICENSE
You may or may not need a business license according to your state. I suggest speaking with an accountant or business attorney to determine if a business license is needed. Different states have different requirements and you'll want to talk to a professional in order to keep yourself protected.
Note: Several wholesalers require a business license or at the least an EIN to buy wholesale inventory.
REGISTERING YOUR BUSINESS
Deciding whether or not to register your business in your state also requires some footwork. You'll need to research your state's guidelines and requirements in order to determine if you have to register your business or not.
In 2019, Poshmark rolled out a new feature which takes care of your taxes for you. This is an extremely helpful function as Poshmark calculates the tax based on the receiving state and in observance of state holidays. This feature helps to remove the guess work when filing your business taxes.
For more information about Poshmark taxes, click here.
APPLY FOR AN EIN
Applying for an EIN is not necessary for sole proprietorship businesses (meaning you run the business by yourself, you are not classified as having a partnership or a corporation based business).
EIN stands for "Employee Identification Number. You can apply for this number for free at irs.gov.
Please take time to view the IRS checklist to determine if you need an EIN - a sole proprietor can use their social security number as well.
As I've stated many times, Poshmark is a business and you should organize your documents accordingly. You should keep documentation of what you've spent on inventory and what it sold for after the sale. This will allow you to see if you're making money or if you're actually losing it. This can also help you decide on whether you should find different inventory or if you should adjust your pricing.
OPEN A BUSINESS BANKING ACCOUNT
Depending on your sales, how much you plan to sell in the future and if you plan on getting a business license or registering your business, you may want to look into opening a business banking account. I suggest talking to an accountant or business lawyer to determine if this is a good idea based on your personal goals and sales
Even if you don't plan to open a business account, I suggest that you open an account specifically for Poshmark transactions. Keeping a separate account just for Poshmark will help keep your expenses track-able and removes the temptation from pulling funds from other sources to buy inventory. This is also a way to encourage you to make moves - the more you sell, the more inventory and supplies you can buy, which will promote growth of your business
When deciding whether or not to go full-time on Poshmark, make sure to do your research. Be sure to talk to professionals to get a full understanding of steps you need to take and guidelines you need to follow. Stay organized and find organizational and calculating tools to help keep track of your inventory and sales.