posted on July 17, 2004 08:01:06 PM new
I have been told by a powerseller on eBay that it is essential you have a business license to sell on eBay. Now I have been on eBay for 4 years and I have never heard of this....can someone add to this subject..Please! Thanks!
Patr
posted on July 17, 2004 09:03:26 PM new
It's impossible to give an answer to that question that is correct in 100% of all cases. There is no requirement to have a business license to sell on Ebay, unless you sell in certain categories such as wine or medical equipment. Your local laws and ordinances are the main consideration. Some cities require a city business license to conduct any business within their jurisdiction. Some do not. My case is a good example. My neighborhood was recently annexed to the city limits. Before, when we were in the county, there was no requirement for a license. Now, I'm technically required to have a city business license. It's a moot point, because I already had one anyway because of another business I own in the city. Also, if you live in a state that has sales tax, depending on your volume of sales, you may be required to have a retail sales permit issued by the state. Basically, the same rules apply to you that would apply if you were selling at your local swap meet.
A $75.00 solid state device will always blow first to protect a 25 cent fuse ~ Murphy's Law
posted on July 17, 2004 09:47:00 PM new
hi and may i add to spark's thread?
i have my inventory,my restoration shop separate from my residence.
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the county comes along, looks in the window; makes an estimate of value. i have 30 days to reply or number becomes real. at this point, even tho i do not conduct any ANY business at retail, or wholesale, i owe taxes and have to buy a business license.
which is no big deal, for i, like spark already had met my obligation.
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so, i dont know about the p/sellers usuage of the word "essential."
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good luck, mot
[ edited by myoldtoy on Jul 17, 2004 09:47 PM ]
posted on July 18, 2004 09:53:27 AM new
Contact the state tax office in your city, listed in the government section of your phone book. Usually, it is under "State Comptoller".
Here in Texas, if we are selling anything, and not just reselling our own stuff around the house, we are considered to be "in business". As a business, we are required to collect state sales tax on sales made within our own state, and must have a "State Sales Tax Permit", and remit sales tax to the state at least quarterly. If you sell on Ebay to only out of state buyers, there's zero tax to report, but they still expect the report. Chances are, you will end up selling to someone in your own state at some point.
If we open a bank account here in a business name, we must have our business registered with a "DBA" (doing business as) in the county where we reside. The county tax office has the forms that we then receive back verifying we are person doing business under an assumed name. One of the forms allows you to open a business bank account. The bank won't open one without the form.
We have no local laws in my town about registering a business.
If you have employees, you are required to comply by federal laws. You would want to register for a Federal Employer Tax ID number and report their wages. There are more steps on this one I won't list here.
These steps are a bit of a hassle, but can be easily handled, one step at a time. They will seem easy once you have them down. The consequences of not following the federal laws are the most severe.
