This section of the forum is for discussing the business and finance issues of the t-shirt industry. Which business structure to use (sole proprietor, LLC, S Corp, etc), how to handle billing, where to register your business and get the proper licensing, etc.
just bought a press and look forward to selling tshirts soon. i have a couple questions.... i want to buy some transfers and make t shirts , and then sell them ...do i really need to apply for a license or permit or anything like that,, i cant just sell them privately? thanks in advance i appreciate the feedback
If you want to be legit, you need to register your business as a DBA, LLC or Corp. That business needs a Tax ID #.
If you are selling on the street, in a store, at the mall, etc, you will need license to do so. You will also have to collect sales tax and report it every quarter.
If you are only selling online, I don't think you need the license but you should research it in your area to make sure. And you only need to collect sales tax for CA orders, not for out of state orders.
This may all seem like overkill, but most vendors won't sell to you without all your legal info in place.
As kimura-mma said, you will need to have at least your state tax id to collect sales tax. Don't let the state catch you not collecting taxes - they will go after you pretty hard (particulalry CA with their financial problems).
Also, if this is going to be a 'home based' business, you may want to check with your local county/city gov't. They may not allow, which if caught can result in heavy fine and taxes. Of course, most go undetected...but if your neighbors see UPS coming often, and you have a real nosey neighbor, they may just call your local municipality. Also, for IRS purposes, if you are to be legit, you need to indicate 'home based' for tax purposes....it all depends on how legit/serious you may want to take this venture. If you are going to sell at fairs/craft shows, most promoters require proof of biz license when you register. To get a biz lic or State Tax ID and Federal # (IRS), is FREE in about every case. I'd do it just for ease of mind.
Oh, on-line sales? Still ALL above apply..taxes must still be collected..plus majority of wholesalers/suppliers reuire at least state tax id to sell to you...they have to play the rules too.
Last edited by Girlzndollz; October 16th, 2009 at 06:36 AM.
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selling tshirts for first time 
