This morning alone I have had
five different people ask me about
getting a license.
Yes you need a business license (TAX ID #) if you
are starting a retail business, or mail
order business.
You don't usually need a business license if you are only
a "reseller" for a company. For example if you are reselling
for spree, or amazon books, you don't need a retail license -
as you are not the one who is actually "retailing" the product.
However, if you are selling your own product from your own location
you will need a retail license.
So, yes, if you are starting your own mail order business, retail store etc., internet business, then yes you will need a retail
merchant license. Please check with your state as there are a couple
of states who I believe do not charge sales tax - so this license
will not apply to you. As most states do require it, yours probably does, so be sure you get one. You need to collect sales tax on
any goods you sell to customers in your state.
It is very easy to obtain a retail merchant certificate (a business license). It is also very inexpensive. The cost in most states is usually around $20.00
When you get a business license you will
first choose a business name.. If you already have
a domain name you may want to make that your business
name.
Next you will need to call your states
dept of revenue office. They have these
offices in the larger cities. You can either
call them and tell them you need a
"retail merchant certificate" or if there
is an office close enough to you, you can
go and pick one up.
You just fill out a couple of papers and "presto" you have a business license.
That license is good as long as you remain
under that business name or at the same address.
Name or address change is around $10 or so.
But that's it, it's just that one time fee,
no monthly fees for a business license.
At least that is how it is in Indiana.
If you don't know how to obtain the phone
number of the nearest dept of revenue office
in your state, there will always be a
dept of revenue office in the city that is
your states capital.
More for you later....
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