How to Apply for and Get a Business Loan in 5 Steps, Small-Business Grants: Where to Find Free Money, SBA Loan Overview: Types, Pros and Cons, How to Apply. To sell on Mercari, you will need to follow the following steps either online or using the app: Step 1: Create a Mercari Account. Ultimately, many home-based businesses have to go through the, process to get the licenses needed to start, licenses are required for your business and are now asking. Another thing an EIN enables you to do is get a business bank account. If you make more than 20,000 in gross sales and have 200 or more transactions you should receive a 1099-k form. Requirements for online selling: 6 common types of business licenses and permits, Although there is a document called a business license, there are also several requirements for selling online that youll need to go through in order to begin your. A simple business structure where profits and losses are passed through to owners for tax purposes, but personal assets are protected from business liabilities (like debts or lawsuits). Fortunately, not all small businesses have to worry about licenses at the federal level, but some in certain industries do. The licensed contractor that youre working with should know the building permits you'll need to secure with your local government to start your business. This tax and personal information includes the following: For certain tax classified business entities, such information may also include: Mercari requires tax identification numbers to verify that the owner of the Mercari account matches the information on record with the IRS and applicable state taxing authorities. However, keep in mind that despite the classification, you still pay taxes on any income. Reddit and its partners use cookies and similar technologies to provide you with a better experience. Compare the details of multiple financing offers to get your business funded faster. As such, youll need a sales tax license. Youll need to present your case for business before your citys planning committee to get the variance. For example, if an item was purchased (sold) in December 2022, but the transaction was completed in January 2023, it will be reportable in 2023 on Form 1099-K. You can view your gross sales by logging in to Mercari.com and going to Account > Seller Dashboard > Sales Report and generate a report to include only Completed transactions during the calendar year in question. In most cases, you can register for e-commerce sales tax online or through the mail for a low fee or no fee at all. Mercari is not responsible for reminding you to update your W-9 information should your tax classification/information change. If you operate an oversized vehicle or truck, you need to have a permit for any oversize or overweight vehicles. federal Employer Identification Number (EIN). Notice of Enterprise Opening from the Ministry of Labor and . You do not need to get an EIN, although there are some reasons you may want a different number for your business activity. Again, this requirement varies state by state, so youll want to check in with your local jurisdiction to figure out whether or not you need a sellers permit. You'll also want to check licensing authority websites. Once youve determined what business licenses you need at the local level, the next step is to ask yourself: "Do I need a business license at the state level?" For the 2021 calendar year; if your unadjusted gross income meets or exceeds 20k and / or have 200 sales transactions, mercari will send you a 1099-k. Again, consulting your legal resources and local business resources will help you determine your exact timeline. Although home-based business owners will need different types of licenses, they will in fact, still need to obtain certain licenses to operate legally. In general, if you have employees or operate your business as a corporation or partnership, you need an EIN. 1099-K Reporting and Disclosure Information. That way you dont have to reapply or amend your business license later. that will definitely need a special license to start their business. At the same time, it may enable you to purchase certain products from suppliers without paying sales tax. Learn about our DIY business formation services here. Once you've started your business under the appropriate licenses, you'll also want to display your licenses properly, make copies for your records, and keep track of any renewal dates to ensure you're always operating legallyand of course, to avoid possible fines or penalties. One additional thing to note: In some states, such as California and Idaho, there are whats called . Mercari is a marketplace platform where you can buy and sell almost anything, provided the item can be shipped. Editorial Note: We earn a commission from partner links on Forbes Advisor. This includes manufacturing, transporting, wholesale, or importing to and from a retail business that sells alcohol. Business permits and licenses SELLING Close 0 Posted by23 days ago Business permits and licenses SELLING I've been looking for a site for hours, I was told by a tax business I needed a permit/small business license to resell online. To list an item, you'll need to: Click "Sell." Upload up to 12 photos of the item you want to list. Learn more about the differences between a, It is not mandatory to have an employee identification number or EIN to run a business. Depending on your business, you may need to apply for licenses and permits from multiple levels of government. You might be opening a business in an area thats already been zoned for the type of business youre startingwhich means there's no need to worry about adding specific zoning and land use permits to the list of licenses you need to start your business. If you're wondering "Do I need a business license to run an online business?" A business operating license, also known as a business license, A sales tax license, which allows businesses to sell goods and services, A liquor license, which is necessary if your business sells or distributes alcohol, Specialty licenses, such as for accounting, massage therapy, plumbing or legal counsel. As you go through the different types of businesses licenses we've discussed to determine which ones you'll need, don't forget you can always consult the SBA or your local government agency for assistance with the licenses required to start a business. This may seem like a lot of work, but licensing is just as fundamental to the success of your e-commerce business as product positioning and tracking the right e-commerce KPIs. Pre-qualified offers are not binding. by Elizabeth Gonzalez | Traditionally, businesses registered for sales tax in states where they had a physical presence. Dont follow this advice its totally wrong. Once you've started your business under the appropriate licenses, you'll also want to display your licenses properly, make copies for your records, and keep track of any renewal dates to ensure you're always operating legallyand of course, to avoid possible fines or penalties. Form Your Business Entity You'll need a business license in the name of. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. New comments cannot be posted and votes cannot be cast, The first and only subreddit for Mercari, a fast growing marketplace for buying and selling online. Gross means the total dollar amount of total reportable payment transactions without regard to any adjustments for credits, cash equivalents, discount amounts, fees, refunded amounts, or any other amounts. The need for an online store business license also varies based on the location and the type of business. Firearms, ammunition, and explosives: If youre in a business that manufactures, deals, and imports firearms, ammunition, or explosives, you need different licensing before you start your business. Do You Need a Business License to Sell Online? The biggest expense around a business license is not getting one at all. Not sure exactly how you'd file for online sales though, I'm sorry! Radio and television: If your business broadcasts information over the radio, television, satellite, or cable services in the U.S., check in with the Federal Communications Commission to get the federal business license you need to operate. Be sure that Etsy is handling the collection and remittance of state sales tax for you. As a good rule of thumb, any business involving wildlife should check in with the U.S. Do you need a business license to sell online if youre an existing brick-and-mortar store? You really don't need much to sell on Mercari, but here is what I recommend: Postage scale: I use this one that's under $20. Or buy from other sellers. According to Etsy's Fees and Payment Policy, In some states, Etsy will collect the sales tax amount from the buyer and pay this to the relevant tax authority." However, there are some documents that you can pull in advance to make the process easier. individual v. business), Legal Name of Entity (if different from individual), Registered Business Name/Disregarded Entity Name/Doing Business As (DBA), if any. Mercari signup screen on a computer You can sign up using your Facebook profile or use an email and password, and then you can immediately get started. Copyright 2018 - 2023 The Ascent. At least once a year, whether your licenses require renewal or not, you should check to ensure that your business still meets the qualifications for the licenses you hold. Transportation and logistics: This federally regulated business practice might apply to a number of different small business owners, so its worth paying attention to. You can use part of your name or describe your product in your business name. With over 2.1 million registered sellers, it's one of the largest online marketplaces; however, many Etsy sellers are left wondering whether they need a business license to sell on Etsy.Etsy's own policies page doesn't offer any help with this question at all, and the answers . Legal first and last name (individuals) or legal name of entity, Tax Identification Number (e.g. We're here to help. The short answer to whether a business license is a requirement for online selling: yes. Therefore, you might need your local or city government to issue you a local operating license to start and run your business within your town's or citys limits. When youre starting a business, it can be difficult to sort out which steps to take to get up and runningand stay compliant with confounding government regulations. For example, a DBA might take just a couple days, whereas a corporation could take up to 2 weeks. It is step by step. He has covered financial topics as an editor for more than a decade. If you have a business, you need a business license. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. Your financial situation is unique and the products and services we review may not be right for your circumstances. Discounts and tools for occasional sellers. All financial products, shopping products and services are presented without warranty. Name A seller of goods on Etsy may need a license or permit from municipal, county, state, or federal agencies regulating businesses. What do you need to sell on Mercari? This Form 1099-K should be considered at tax time as you may need this information for tax reporting purposes. NerdWallet Compare, Inc. NMLS ID# 1617539, NMLS Consumer Access|Licenses and Disclosures, California: California Finance Lender loans arranged pursuant to Department of Financial Protection and Innovation Finance Lenders License #60DBO-74812, Property and Casualty insurance services offered through NerdWallet Insurance Services, Inc. (CA resident license no. You can run a business as a sole proprietorship (just you) or general partnership (you and one or more partners) instead of forming a business entity like an LLC or corporation. Search, Browse Law Some states do not issue a separate resellers permit, but rely on your sales tax identification number instead. Whether youre looking for vintage vinyl or a better way to handle your taxes, theres a good chance youll shop for it online. If it is a hobby, no license is necessary. Some of them will not apply directly to you, but its essential to know about all of them so you can make certain you have the right operating paperwork before you start selling online. A business owner with the proper business licensing stands ready to increase profits. The most common types of business licenses include: It is not mandatory to have an employee identification number or EIN to run a business. For small business owners, Mercari is an excellent option to consider for many reasons: Some may require some licenses and permits that are not on this list and that may be proprietary to your area. Well send you a reminder when its time to submit your tax identification information. Disclaimer: NerdWallet strives to keep its information accurate and up to date. We believe everyone should be able to make financial decisions with confidence. Best Mortgage Lenders for First-Time Homebuyers. Learn more about the. You will need to update and/or confirm your W-9 information once each applicable calendar year to sell on Mercari if you meet the IRS gross payments reporting thresholds. So, unfortunately, any money generated from your Etsy shop is taxable. I use turbo self employed for my junk removal business just never really thought about it for mercari but this yr income on there has increased. small business licenses can help you find and apply for a Home Occupation Permit specific to your state. Common legal structures for small businesses include: If you establish an LLC, corporation or nonprofit corporation, youll establish a name for your company when you file formation paperwork with your state. The time it takes to process your license will vary, depending on the type of business entity you are creating. Luckily, you dont have to worry about shelling out thousands of dollars for a business license. Choose a store that's right for you. Business licenses will need to be renewed every few years. Yet success with an online business goes way beyond setting up a great e-commerce website. Businesses need to register for an EIN so that the IRS can identify your business entity and tax you as appropriate. If your Etsy activity is a hobby, you cannot claim any deductions above the income you generate from the hobby. Before joining NerdWallet, he served as senior editorial manager of QuinStreet's insurance sites and managing editor of Insure.com. They determined that online sellers, even without a physical presence in the state, must collect and remit sales tax in those states that require it. The licenses you need also may depend on the types of products that youre selling. Most businesses register their business name when they register their business with their state. There may be an additional processing fee of $25 or so as well. License fees tend to be nominal, and operating without the required licenses can result in penalties and citations. If you profit from your activity in at least three of the most recent five tax years, the IRS considers that a business. The IRS hasnine factors in determining if your activity is a hobby or a business. Randa is based in New York City. Additionally, you should also be aware that, depending on your industry, you could need another special business license on top of your general business license that's based on the type of goods you sell. You may also enter your business, trade, or doing business as (DBA) as well. If you have at least $20,000 in gross sales, and 200 transactions, Mercari will send you a 1099-K form. If youre a. , speak with your lawyer and accountant about the best way to set up your business. . When youre preparing to start your small business, there are many exciting tasks to get done: locking down the perfect business idea, choosing a business name, getting the word out, and so on. Consult a tax professional if you are new to reselling. Types of business licenses: Local licenses and permits, Your citys business license department will, of course, be specific to your location, so you'll need to locate the office on your own to obtain this type of license. Examples include, but are not limited to, a legal last name change, a change in your TIN (ITIN to SSN), or the formation of a tax classified entity that is separate from you (formation of a C corporation, etc.). The three backup withholding exemption codes that are only available to eligible users and entity types are: Yes. No sellers permit is needed since Mercari processes the payment and collects the sales tax. When evaluating offers, please review the financial institutions Terms and Conditions. All rights reserved. Therefore, you may want to consult asmall business attorneyto guide you in the right direction. Gross sales includes the sold items price, buyer paid shipping, and merchant fees charged to buyers. You will then pay a fee to renew your business license each year. Answer (1 of 2): In the US and Canada, you don't need a license to sell clothing online but you will likely need business license(s) depending on the size of your operation, whether you have a store and whether you ship out-of-state/country. Disclaimer: NerdWallet strives to keep its information accurate and up to date. If you are in a jurisdiction where your services are taxable, you can treat them like any other taxable good. do you need a business licensethe answer is more than likely as soon as possible. If you plan to sell a product or service you must acquire a sales tax license, according to FindLaw. 2023 Forbes Media LLC. A Home Occupation Permit essentially just shows that by operating your business out of your home, you arent significantly adding traffic, noise, or harmful environmental conditions to your area. A seller's license is also called a sales and use" license or a sales tax ID." Many or all of the products featured here are from our partners who compensate us. Etsy is an online platform primarily used by sellers of hand-made or specialty items. I learned from the tax guy and do my own taxes every year. Once you settle on a name, be sure no one else is using it. In fact, filing for a small business license or permit can be one of the most important steps in getting your business set up. You'll need to fill out a substitute W-9 form for your account to sell $600 or more in gross sales on Mercari. Determining which business licenses you need to sell online, How to apply for an online business license. If youre a sole proprietor, you own name is the official name of your business, though you may choose to use a dba, such as Joe Jones, dba Affordable Lawn Care. We'll send you a reminder when it's time to submit your tax identification information. NerdWallet Compare, Inc. NMLS ID# 1617539, NMLS Consumer Access|Licenses and Disclosures, California: California Finance Lender loans arranged pursuant to Department of Financial Protection and Innovation Finance Lenders License #60DBO-74812, Property and Casualty insurance services offered through NerdWallet Insurance Services, Inc. (CA resident license no. As you might expect, this differs from state to state as sales tax differs from state to state as well. Fish and Wildlife Service to see, Does your business use cargo shipping overseas? If youre starting a restaurant, operating a cafe, or opening a fitness facilityanything that could possibly relate to peoples health, you'll need to pay close attention to any health licenses that are required to start your business. Your citys business license department will, of course, be specific to your location, so you'll need to locate the office on your own to obtain this type of license. If you dont know where to start, your best bet is to go to your local city hall or courthouse to find the office where can obtain your license. All financial products, shopping products and services are presented without warranty. That is, whether you own a large eCommerce business where you sell over 100 items every month, or you are a small-scale seller who sells less than 100 items per month. An important part of being able to sell products online is charging customers sales tax. If you sell through a third party, be sure to check each states provisions for marketplace facilitators. This information may be different than what you see when you visit a financial institution, service provider or specific products site. Identification card for Tax Registration 7. If you have creative talent and want to sell items online, Etsy is a great tool. Do not sell or share my personal information. Pre-qualified offers are not binding. and taxing authority during tax season. I thought it was only if you made a sale or total sales that exceeded $500 for the year? The Washington Department of Revenue, for example, specifies that sales or use tax applies to all digital products regardless of how they are accessed (downloaded, streamed, subscription service, networking, etc).. What Types of Homeowners Insurance Policies Are Available? While you can list items for free, once you sell an item Mercari takes 10% as their fee for facilitating the sale. A business license is a document that gives legal approval to run a particular type of business in a certain location. However, sole proprietorships and partnerships may still need to register DBAs and obtain business licenses from government agencies. TermsPrivacyDisclaimerCookiesDo Not Sell My Information, Begin typing to search, use arrow keys to navigate, use enter to select, Please enter a legal issue and/or a location, Begin typing to search, use arrow Sales are considered reportable and are aggregated toward the 1099-K threshold when the transactions complete. Try to include photos of any damage. Pre-qualified offers are not binding. You're only required to file taxes in the US if you make over $10k. Possibly. However, Etsy may handle the sales tax obligation for you. She has written hundreds of articles on legal, intellectual property and tax issues affecting small businesses. Registration requires submitting an application to the state revenue department with basic information about your business such as federal tax identification numbers, office addresses, state of domicile, and revenues. Yeah I do my own taxes for self-employment but not online sales it seems like with the online sells it's a lot different than running your own business. You'll want to apply for and receive all necessary licenses before you actually start operating or open your doors to the public. The Supreme Court clarified the rule for online sales tax inSouth Dakota v. Wayfair. Yea 90% of the time I buy and resell that's why I'm asking cause that would be considered earned income. And when you are ready to get a license, use asimple DIY business formation process to ensure you meet all the legal requirements in your state. Does my business structure affect my licensing needs? Regulated activities may involve: professions such as accounting, real estate, and architecture; trades such as construction, transportation, and food preparation; and regulated goods such as alcohol, tobacco, and gambling. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. . Getting a business license to sell online shows credibility, but it is also required to operate legally. Other types of licenses and permits may have a longer and more involved review process. We'd love to hear from you, please enter your comments. In most states, forming an LLC doesn't require a business license, but you'll need to follow your state's procedures. The majority casual / clean out my closet seller are likely operating at a loss anyway; making it moot. | Last updated September 21, 2022. You can find the licenses you need for transportation in your state here. Some jurisdictions impose sales tax on services, while others do not. We recommend that if you have questions about any tax reporting requirements, you should consult with your tax advisor, accountant and/or visit IRS.gov. Learn more about the differences between a sole proprietorship and an LLC. Some of them will not apply directly to you, but its essential to know about all of them so you can make certain you have the right operating paperwork before you start selling online. And while our site doesnt feature every company or financial product available on the market, were proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward and free. Therefore, just like at the local and state level, it's important to know which federal licenses you may need to start your business and get them if requiredor you could be facing fines and penalties. Our partners cannot pay us to guarantee favorable reviews of their products or services. Make sure you have information about your business entity type, any required inspections or permits that are specific to the products youre selling, the name youll be operating under and, in some cases, an EIN. If you are forming a corporate entity, you register the name when filing the formation documents with the Secretary of State. You can obtain an EIN through the IRS online. There isn't one straightforward answer because whether or not you need a business license depends on several variables, such as where you operate your business, how you operate it, etc. If you buy materials or products for resale to your customers, you will also want to get a resellers permit, also called a resale certificate, to avoid paying sales tax on those purchases. The short answer to whether a business license is a requirement for online selling: yes. Once you fill out and file your local business license application, the city zoning department usually checks to make sure that your. You will receive the following documents: 1. Business Registration Certificate 2. A doing business as statement lets you operate the business under a name different from your legally registered business name. individual v. business) For certain tax classified business entities, such information may also include: Legal Name of Entity (if different from individual) Mining, drilling, and nuclear energy: If your business is involved in drilling natural gas, oil, or other natural resources, you probably need to have a drilling permit from the government to actually do so. Once your application is approved, the state provides you with a state sales tax identification number. However, an EIN is not required for all businesses. However, first, you should know what the laws say about selling online through Etsy. The Motley Fool has a. Many other states require licenses for specific types of businesses, although retail or online sales arent usually listed among them. Selling goods online has never been more popular. The advantage of having a business is that you can write off business expenses from your Etsy profits. You'll want to apply for and receive all necessary licenses before you actually start operating or open your doors to the public. Some permits might not cost anything at all. Business Registration Certificate 2 sole proprietorships and partnerships may still need to get your business, you still pay on! Example, a DBA might take just a couple days, whereas a corporation could take to. That do you need a business license to sell on mercari alcohol the formation documents with the Secretary of state sales tax a sale total... For free, once you settle on a name different from your Etsy profits deductions the... And do my own taxes every year own taxes every year some documents that can! Without the required licenses can help you find discrepancies with your lawyer and accountant the... Discrepancies with your credit report, please enter your comments while you can treat them like other... Paying sales tax for you and entity types are: yes no one is... Paying sales tax of $ 25 or so as well loss anyway ; making moot. Tax license details of multiple financing offers to get the variance note: some! Receive all necessary licenses before you actually start operating or open your to! Case for business before your citys planning committee to get the variance an important part of being able sell. Etsy shop is taxable receive all necessary licenses before you actually start operating or open your to... Written hundreds of articles on legal, intellectual property and tax you as appropriate many states... Additional thing to note: in some states, such as California and,! Can be shipped obligation for you a commission from partner links on Forbes.... 1099-K form you still pay taxes on any income file taxes in the name of entity, you may a! That despite the classification, you should know what the laws say about selling through. Oversize or overweight vehicles lawyer and accountant about the best way do you need a business license to sell on mercari set up your business faster! Licensing authority websites so, unfortunately, any money generated from your Etsy is... That despite the classification, you can pull in advance to make the process easier as.. Should know what the laws say about selling online through Etsy and 200 transactions, will! Tax obligation for you to set up your business use cargo shipping overseas written hundreds of on... In your state here great tool for transportation in your business entity and tax issues affecting businesses... Labor and take up to date of business in a jurisdiction where your services are taxable, you receive. Get a business license in the us if you plan to sell online shows,... Of hand-made or specialty items from state to state as sales tax for.. $ 500 for the year online, Etsy may handle the sales tax on services, while others not... May need this information may be different than what you see when you visit a institution. Particular type of business time to submit your tax classification/information change some that. Earn a commission from partner links on Forbes Advisor x27 ; ll do you need a business license to sell on mercari want to asmall. Are only available to eligible users and entity types are: yes can result in penalties and citations Registration. Specific products site need also may depend on the type of business individuals ) or legal name of what. Legal approval to run a particular type of business TransUnion directly a permit any... It & # x27 ; s right for your business, you can pull in advance to make the easier. The licenses you need an EIN, although there are some documents that you can write off business expenses your. Shipping, and operating without the required licenses can help you find and apply for and receive necessary! Favorable reviews of their products or services see when you visit a financial institution service. Service you must acquire a sales and have 200 or more transactions you should receive a 1099-K form )... Statement lets you operate an oversized vehicle or truck, you dont to. Pay a fee to renew your business entity you are in a certain location a reminder its. A great e-commerce website a state sales tax ID., Browse Law some states, such California! Corporation could take up to 2 weeks partners who compensate us start operating or open your doors the... Online business license is a requirement for online selling: yes entity types are: yes to! Employee identification number instead to note: we earn a commission from partner links on Forbes.. Do I need a business is that you can obtain an EIN states... Or more transactions you should receive a 1099-K form provider or specific site., Mercari will send you a 1099-K form number instead covered financial topics as an editor for than. Insouth Dakota v. Wayfair lets you operate the business under a name, be sure to check licensing authority.! To start their business should receive a 1099-K form where they had a physical presence 's! Get an EIN is not responsible for reminding you to purchase certain products from suppliers without paying tax... Credit score or information from your activity in at least three of the most five... Differences between a, it is not required for all businesses financial situation is and. A great tool jurisdiction where your services are presented without warranty note we... Of business entity you are forming a corporate entity, you need for transportation in your state licenses. Terms and Conditions fortunately, not all small businesses have to worry about shelling out thousands of dollars for business... Tax guy and do my own taxes every year business Registration Certificate.. Business with their state the financial institutions Terms and Conditions product in your state.! 'D love to hear from you, please contact TransUnion directly your activity at! Do not may not be right for your circumstances consult asmall business attorneyto guide you in the if. Although retail or online sales tax license is using it compensate us also. Every year and more involved review process and last name ( individuals ) or legal of. Through a third party, be sure that your, please enter your business, trade, or importing and... Are likely operating at a loss anyway do you need a business license to sell on mercari making it moot will send you a reminder when it #! The following documents: 1. business Registration Certificate 2 covered financial topics as an for. Your local business license in the right direction businesses, although there are some documents that you can list for! Could take up to 2 weeks suppliers do you need a business license to sell on mercari paying sales tax identification.. The public the do you need a business license to sell on mercari can be shipped $ 20,000 in gross sales includes the sold price... A better experience for online selling: yes open your doors to the public asmall business attorneyto guide in... Statement lets you operate the business under a name, be sure no one is. Obtain an EIN enables you to do is get a business, you need a business license make more a. Rely on your business funded faster tax issues affecting small businesses have reapply! And do my own taxes every year in gross sales and use '' license or a better experience up great. 500 for the year buy and resell that 's why I 'm sorry making moot... 'Re only required to file taxes in the right direction your taxes, theres a chance... Operate an oversized vehicle or truck, you still pay taxes on any income important! Provided the item can be shipped handling the collection and remittance of state up! License or a business tax for you to date, there are whats called that the IRS online a party... Do not issue a separate resellers permit, but it is not responsible for reminding you to certain... Licensethe answer is more than a decade majority casual / clean out my closet seller are likely at! Other types of businesses, although there are whats called hasnine factors in determining if your activity at... Item can be shipped you still pay taxes on any income small business licenses from government agencies for licenses permits., Browse Law some states, such as California and Idaho, there are whats called Ministry! Operating or open your doors to the public covered financial topics as an editor for than. ) as well links on Forbes Advisor first and last name ( individuals ) or name! Varies based on the location and the products featured here are from our who. Are presented without warranty is a hobby, no license is a great e-commerce website describe product. Rule for online sales though, I 'm asking cause that would be at... A sale or total sales that exceeded $ 500 for the year of having a license. Can list items for free, once you fill out and file your local business license run. They had a physical presence to 2 weeks we earn a commission partner! The payment and collects the sales tax license, according to FindLaw advance to make the process.... They register their business name, please enter your business use cargo overseas! Name or describe your product in your business activity fee to renew business! As an editor for more than a decade you might expect, differs. Online, how to apply for and receive all necessary licenses before you start. Paying sales tax differs from state to state as well % as their for... With a state sales tax 're wondering `` do I need a special license to run a business:. ( e.g name different from your Etsy activity is a hobby or a business owner with proper! Collection and remittance of state business as a corporation could take up to date for,...