05-23-2024 02:27 PM
Question. I have been selling on ebay for 3 months. I want to now treat it like a business and acquire the permit and license in California. I am also thinking about a LLC. So, far I have been going in circles with what is needed and what process to follow. Any help is appreciated.
Thank you
05-23-2024 02:30 PM - edited 05-23-2024 02:31 PM
Are you located in California or somewhere else? From you photos etc. it looks like you are drop shipping.
05-23-2024 02:50 PM
Yes, I am located in California. I sell on ebay and ship around the country.
05-23-2024 02:50 PM
You'll need to check with the state of California to see what all you'll need.
05-23-2024 02:53 PM
Yes, they are giving me a run around, because there is no Business Activity code for a reseller.
05-23-2024 02:59 PM
I'd talk to an accountant, you'll probably want one anyway if you're going to start a legitimate business
05-23-2024 03:09 PM
This should help some.
Starting a Business Checklist :: California Secretary of State
05-23-2024 03:52 PM
Slow down on the LLC, etc. - sole proprietor works fine until you get up and running and some more experience.
05-23-2024 04:21 PM
Thank you very much, and have a safe Memorial day as well
05-23-2024 04:21 PM
That is my next step. Thank you very much
05-23-2024 04:22 PM
Will do and cross your fingers. I am dealing with Sacramento. 🙂
05-23-2024 04:23 PM
Thanks for the info. I am looking at all three.
05-23-2024 06:03 PM
California requires that you get a "business license" from City of Oxnard to sell online items (costs about $60/year).
Even though EBAY collects "sales tax" and remits to customers on your behalf...you need to "register" your business and get "log-on ID" number from California Dept. Tax & Fee (this way you can legally deduct "business expenses" on your Federal income tax). When you file your annual California Sales Tax form online....you show EBAY as "facilitator that collects & remits "sales tax" on your behalf (you never owe any State sales tax).
https://onlineservices.cdtfa.ca.gov/_/#1
Not necessary to get LLC or have EBAY business account. Of course, if you want to do this it is perfectly okay.
05-23-2024 06:47 PM
I've sold here for way too long, including partly making my living here, and have never had a business account.
05-23-2024 08:51 PM
Thank you for the information. I called my CPA and she is pointing me in this direction. Thanks again