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I am going to be selling shirts online and want to know if i should get a business license... I am also doing small time print work and stuff but nothing too substantial (yet)... Is there a certain amount of business you need to have before you need a license?


hope to hear some response
 

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Basically if you are operating a business, you need to have a business license and a resale number. This way you can get wholesale pricing on your stock, and also make sure you dont get into trouble from operating under the table. You will want to get a license so that once you start selling on a website, you can charge taxes for sales within your state, of course you will also need to file taxes and pay them to the state also. The best thing to do is go to your states website and look under small business, and see what is required for your area to operate a business. It usually will include getting a license, resale number and filing a dba (doing business as). Hope this helps. If you need any other help let us know :)
 

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In starting a t-shirt business you don't necessarily need a business license, however a seller's permit is essential. As with a business license, a seller's permit allows you to purchase product at wholesale prices. Plus there are less steps involved in getting a seller's permit than a business license. I'm based in San Francisco, CA so depending on the city and state you live in, there may be a different compliance criteria altogether. So check with the proper entities in your state as Sunnydayz has already stated.
 

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This is all going to be very much dependent on a lot of factors.

I know in Michigan, you don't really need anything but your social security number to sell if you don't have any employees.

Although I know they recommend that you get a tax id, but all in all, what you need is going to depend on what exactly you do, where you're operating from, how many if any people you employ, and what state you live in.

I think for the most part with online stuff the most you would need is a dba and tax id. But as most others have said, definately check with state and local laws.
 

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The business license is your local municipal governments way of making some money. As has been mentioned, check with your state, country, municipal government about what they require. To purchase goods for resale, you simply need a resale tax ID that you can get from your states' department of revenue. If you choose to operate as a sole proprietorship, all you need is your social security number to take care of the applicable state and federal taxes.

Obviously all of the things mentioned above need to be done in a specific order. Start with formation of your company (DBA (sole proprietorship), LLC, Inc., etc.), then get your relevant licenses, finally, get your resale ID.

HTH.
 

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All I have is a Federal Employer ID number and a Sales Tax ID number and I have been open for 3 years. I thought that was all that was required since that was what I was told by my accountant. Is there something I am missing?

Joe

You should be set. The sales tax ID is your retail sales permit. You should probably have a DBA, but if your bank doesn't require it, it shouldn't be necessary.
 

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Nearly all businesses need a county or city license. This is a general license that grants you, as the business owner, the privilege of legally operating a business within a certain city and/or county jurisdiction. Fees are typically low and these kinds of licenses are easy to obtain, though application procedures may vary.

Business licenses are to businesses as medical degrees are to doctors. And even if there is a chance that you don't need a business license, I would get one anyway. Better safe than sorry!
 

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Three essentials to start a business in your state:
1. Business license
2. Resale Tax Number (Sales and Use Tax ID)
3. Federal EIN (If Sole Prop, then SSN)

And possibly, legal entity filing.

A note on Sales Tax IDs: If you are a wholesaler only, you can get a wholesaler Tax ID and only have to file quarterly instead of monthly.
 

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If you run a business within a city you need a business license. Believe me.. I know. I found out the hard way.. I had a resale license and when the city I live in checked during an audit they found I operated a business in their city. The result was I was fined and had to get a license or close up my business.. and that was not going to happen. Now I run an Internet sales business and they actually have a license for that type of business. I am located in California. Do yourself a favor.. get a license.. don't mess with your city.. they will win.. Lou
 
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