Resellers License?

[rkcollectiblesandmore]

I was told by a fellow seller that he cannot receive any payments because he needs to provide eBay with a resellers license. However I have not gotten any information on that. Is this true or not? I am just a small time seller. I know its free to get one in my state but its more paperwork rather than getting the 1099k from eBay.

[heckofagame]

Is he talking about a business license or a sales tax permit?

[southern*sweet*tea · Accepted solution]

If they have a business account they may need to show their business license or other business paperwork.  For personal sellers, no, you don't need anything like that.

When I say personal sellers, I mean those that sell using a personal account. All online sales transactions are business transactions.

[714ricki]

The reseller license would only be needed if they registered their ebay account as a business when setting up managed payment. Most ebay sellers would be considered as self-proprietorship and wouldn't need a reseller license. 

Best of luck!

[rkcollectiblesandmore]

Awesome, thank you for the replies. I have a personal and he has business so that makes a lot of sense. So I have nothing to worry about. You all are great. I at least saved the info for starting a business license in my state for when I hopefully start building myself up. Great sellers community on here.

[johnrj1226]

I think  your  fellow seller doesn't  have all his ducks in a row  or you misinterpreted what he told you. 

1.  You do not need a business license to sell on eBay

2.  eBay takes   care of state sales taxes   for US sales adn   issues payments to the various states

3.  You might  be talking  about a state/county/city  sales tax exemption  certificate where a  sellers is exempt from  pay sales tax on items that he will resell to an end user.    Such a company gets the certificate(s) from his  own state/county etc.

[simply-the-best-for-you]

I am a business seller, though I'm still a sole prop & I have a reseller's license, but I have never had to provide it to Ebay for any reason.  

The only one a reseller's license benefits, is you, in that you can buy inventory tax exempt.  Not sure why Ebay would care in the least whether you're paying state sales tax on your inventory or not.  

That said, at certain levels, in certain cases, I have heard of Ebay asking for documentation on inventory purchases, so I guess theoretically, I could imagine in a rare case, them asking for it.  But, as a matter of course, no.  

ETA:  They are not free in my state.  Not expensive, but not free. 

[oldwestgold]

In Ohio here, you simply file online for a reseller's license, and one is emailed back to you. No cost and a very simple process.

[lepke1979]

Can't recall if it was here or elsewhere, but I think I recall giving my Seller Permit number when initially signing up. Probably don't need it for a personal account. He may be talking about a seller certificate though to not pay sales tax on purchases.

[rkcollectiblesandmore]

I am thinking the same thing, and he is leaving something out or not 100% correct. Otherwise I would of gotten the same notification. From what I have been getting from all the replies basically not to worry right now cause I am a individual seller and not business (yet).  This is all new to me, so I am doing all the research I can, before I start a business and knowing now from you all that I can get tax exemptions with a resellers license will be very helpful. Thank you

[simply-the-best-for-you]

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@oldwestgold wrote:

In Ohio here, you simply file online for a reseller's license, and one is emailed back to you. No cost and a very simple process.

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That's great.  I was just pointing out that they are NOT free everywhere, so OP should research for sure.  

OP, even if you're  a business, it wouldn't matter.  Like I said, I'm a business & Ebay has never asked to see my reseller's license.   Your friend is either using the wrong terminology or leaving something out of the story.