As others have said, no you don't need a Business License to sell here on Ebay. But the state you are in may want you to have one depending on how active of a seller you plan to be.
I have had a business license in my state since I started selling on line. I still use my name and file reports as a Sole Proprietorship. You don't have to set up an LLC or anything else to get a Business License.
States usually make if very easy for people to sign up for a Business License. And there are all kinds of cost breaks for Small Businesses. Don't let setting yourself up with a Business license to scare you. It isn't hard and for me it enabled me to get a Resale Certificate so when I purchase stuff for resale or shipping supplies [my state allows this] tax free.
What kind of stuff do you plan to sell? Roughly how many active listings regularly? Are you going to be doing Auctions or Fixed priced listings, or a combination of both?
When I first started selling on EBAY I thought because I was a "person" it was just a hobby that made me a couple of bucks. When I had my CPA do my taxes, he set me straight in a hurry. He said the IRS doesn't care if you are a person or a corporation you have to pay income taxes on every dollar earned.
He advised me to contact my city and get a business license to "sell on EBAY". License only costs me $33/year.
Now that I have a business license, I can file my income taxes as a "business" and take all the deductions (EBAY fees, refunds, shipping expense, cost of goods, packing supplies, office supplies, etc). You only pay Federal income tax on the "net amount" after all business expenses are deducted.
mam98031
·11 months ago@brighterdaze4us
As others have said, no you don't need a Business License to sell here on Ebay. But the state you are in may want you to have one depending on how active of a seller you plan to be.
I have had a business license in my state since I started selling on line. I still use my name and file reports as a Sole Proprietorship. You don't have to set up an LLC or anything else to get a Business License.
States usually make if very easy for people to sign up for a Business License. And there are all kinds of cost breaks for Small Businesses. Don't let setting yourself up with a Business license to scare you. It isn't hard and for me it enabled me to get a Resale Certificate so when I purchase stuff for resale or shipping supplies [my state allows this] tax free.
What kind of stuff do you plan to sell? Roughly how many active listings regularly? Are you going to be doing Auctions or Fixed priced listings, or a combination of both?
What state are you located in?
worldcoinauctions
·11 months agoAt least keep a log of your expenses, packaging, item costs, postage, etc. This will help you file your taxes properly and avoid paying too much.
kensgiftshop
·11 months agoEbay doesn't require one, but your city or state might, so check with them.
caldreamer
·11 months agoWhen I first started selling on EBAY I thought because I was a "person" it was just a hobby that made me a couple of bucks. When I had my CPA do my taxes, he set me straight in a hurry. He said the IRS doesn't care if you are a person or a corporation you have to pay income taxes on every dollar earned.
He advised me to contact my city and get a business license to "sell on EBAY". License only costs me $33/year.
Now that I have a business license, I can file my income taxes as a "business" and take all the deductions (EBAY fees, refunds, shipping expense, cost of goods, packing supplies, office supplies, etc). You only pay Federal income tax on the "net amount" after all business expenses are deducted.
animal-house-8
·11 months agoNot required on ebay but your local laws may, it's different everywhere.
toysaver
·11 months agoYou will be a person running a business and need to keep records for IRS purposes.
bashort
·11 months agono, not required by ebay