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License and permits

1341 Views 3 Replies 2 Participants Last post by  jeron
Hi guys, I am new here and I would like some questions to be answered. I am looking to start a clothing line by myself before Summer 2014, so I can have a head start for Fall 2014 at least. My concerns are, where do I actually start? I am not familiar with DBA, EIN, Tax ID, this and that, but I did do some research on my own.

The site below is where I did my research from but I am unsure if I need all of the steps required.

City of Long Beach, CA - Quick Guide to Doing Business

1. First of all, I am not OPENING a business. I just want to sell from home using the free website online (bigcartel.com).

2. I need to know what exactly do I need?
I was trying to buy wholesale shirts from online but it is required to have a wholesale license and then a federal tax ID.

Thanks for your time and reading this. Hope you guys can help me out!
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Granted i live in Utah so you will need to check with your local authorities to make sure you have everything you need.

but first off if you are Selling shirts to make a profit you are a business. It doesn't matter if you have a retail store or do it out of your house. Because of that you will be required to legally start a business and that will give you your DBA, and EIN number. Then because you are selling shirts to the public you need to charge them sales tax so that requires you to get a sales tax number. (Again check with your local authorities because some rules are different state to state. This is just how Utah does it.)

Just because you don't think it is a business doesn't mean its not a business. The fines that may be applied to you if your caught operating without the proper licenses are usually far far far more than the actual cost to just get set up legally in the first place.

And yes wholesale places will only sell to legitimate businesses with tax numbers. They have to prove that the people they sell to are charging the end user with the tax. The Sales tax number you supply them basically proves that.
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Granted i live in Utah so you will need to check with your local authorities to make sure you have everything you need.

but first off if you are Selling shirts to make a profit you are a business. It doesn't matter if you have a retail store or do it out of your house. Because of that you will be required to legally start a business and that will give you your DBA, and EIN number. Then because you are selling shirts to the public you need to charge them sales tax so that requires you to get a sales tax number. (Again check with your local authorities because some rules are different state to state. This is just how Utah does it.)

Just because you don't think it is a business doesn't mean its not a business. The fines that may be applied to you if your caught operating without the proper licenses are usually far far far more than the actual cost to just get set up legally in the first place.

And yes wholesale places will only sell to legitimate businesses with tax numbers. They have to prove that the people they sell to are charging the end user with the tax. The Sales tax number you supply them basically proves that.
Thanks a lot Jeron, I am going to take this into full consideration because I do not want to be a fraud seller and in that case... get fined for something that's cheap to begin with. If I have any further information, I can probably ask you since you already know how the clothing industry seems to work. Thanks again!
No problem. I would suggest finding an accountant because they will be able to tell you, or help you set up everything you need to be legal.

And I don't know everything but feel free to ask and I'll do my best to answer any questions you have
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