Starting up tshirt biz. Need advice.

I've been kicking around different ideas on how to make some money now that my unemployment is running out. Only have maybe a month left on it. I was thinking about making t shirts using silk screening. Then realized it would cost too much to start up plus it gets messy. So I am going to go the route of buying a heat press and using heat transfers. Really my only start up cost in the beginning will be buying the heat press. For now until I get on my feet I can purchase the designs and shirts as the orders come in. May take a little longer to get the product out but I don't have to put money up front.

Now here's the thing. I can buy the designs already on heat transfer paper no problem. Buying blank shirts is a different story. I found suppliers that had reasonable prices on wholesale blank shirts. But they require a tax id to get them at that price.

How do I go about getting a tax id? Is it the same as a business license? If not do I need one of those as well? If I apply for these things will it effect my unemployment. I don't want to jeopardize my currently income by applying for a tax id or business license since I am not making money from it yet. My plan is to make the tshirts and sell them at flea markets, local churches, ebay, and have a website. Once I get on my feet with this I will get a shed to put out back just for stock and workshop for making the shirts. Once money is coming in I will buy shirts in bulk and keep all designs on hand to speed up delivery of orders.


Also what am I going to have to keep track of for tax time?

 

You can apply for a tax id (also known as an employer id number or ein) on the irs website. <-- There's a link.

Having a tax id will not impact your unemployment but earning income can. So when shirts start selling, you'd have to report what you make when you file your weekly claims if you plan on playing by the rules.

Take a look at http://www.t-shirtforums.com/. It's a forum dedicated to making and selling tshirts. They have thousands of members so there should be some good info for you. There are also other tshirt making forums. Use Google and find them.

For tax time, you want to keep track of every dollar you spent and made in the business. Everything.