What type of license/permit do I need for an internet business reselling products?
May 4th, 2010 | by admin |I will be starting a business very similar to a gift basket business. I hope to purchase a variety of items wholesale and then resell these items marketing it to a specific group. I know that I do not need a business license because I do not have a physical store front. Where do I go and what do I need to do as far as licensing? Please help….thx
One Response to “What type of license/permit do I need for an internet business reselling products?”
By Czarna on May 4, 2010 | Reply
Congratulations on your new venture.
In order to purchase most items wholesale you’d need a tax id. To get it, you’d need to legally register your business.
You have options in opening as a Sole Proprietor, LLC or Corporation. All 3 have different requirements.
I’ve started as a sole proprietor, which is the easiest to do. I figured that I can always switch to a different form later.
In order to be a sole proprietor i had to go to my county office and apply for licence $5, then post an add in a local newspaper announcing the business for 4 consecutive weekends $30-$50 total, depending on the paper. County office gave me the list of appropriate newspapers.
Once that was completed, I went to my village clerk to apply there, they have an annual fee $55. Supplied with all of the above I went to the states tax office and applied for a tax licence. Received it in no time and I was ready to go.
My suggestion is to apply for a tax licence once you’re all set to run the business. Most likelly you will have to report on your collected taxes on monthly basis. Even if you have not sold anything and have not collected any tax. If you miss to report, you’d have to pay a penalty fee. So why give yourself more work if you’re not quite ready. Just a thought.
Good Luck!!!