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What are the requirements for business account to be legally ok to sell?

Hi,

 

I have been selling items via personal accounts and thinking about changing into business account but I am not sure what are requirements.

 

As far as what I know, if I sell a lot of items, and if I have a store(?), then I can have the business account. 

But the only reason for me wanting to get business account is that fees can be much lower according to what I've researched.

 

It also seems I need a license for the legal business names and in case of reselling from maufacturer, but I am not sure if that is definitely required, although I am sure I will need one if I am to sell some big amounts from manufacturer, but that isn't happening anytime soon. 

 

I would much appreciate it for the responses. 

Message 1 of 28
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What are the requirements for business account to be legally ok to sell?

Hi, this is more a PayPal question than eBay, but here is a link to PP describing the differences between a business or a personal account, and discussion about which is needed to sell. Hope this is helpful.

 

https://www.paypal.com/us/selfhelp/article/what-is-the-difference-between-personal,-premier,-and-bus...

Message 2 of 28
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What are the requirements for business account to be legally ok to sell?

In the U.S., eBay does not distinguish between "personal" and "business" accounts. Fees are the same either way. Having an eBay store does mean a slight difference in commission percentage, but it also costs a monthly fee even if you sell nothing.

However, Paypal recommends that you have a Paypal business account to sell -- whereas a personal account is fine for buying and for sending and receiving money among friends and family. It all has to do with dollar amount limits and reporting income to the IRS.

Yes, if you are buying merchandise from a manufacturer or distributor, you will need a state tax exempt number and probably have to submit a credit application unless you plan to pay up front rather than be billed on open account. Having a business name is fine, or as a sole proprietor you can use your real name and Social Security number. (A company with employees will need a federal EIN (employer's identification number). A city business license is not necessary unless you sell extensively within your own city.

In the UK, and perhaps elsewhere, eBay does have specific rules for business accounts. For example, listings must include full contact information. (In the U.S., we are specifically prohibited from publishing contact details.)

~~C~~
My Glass Duchess
Quoting Mom: In polite society, "hey" is for horses.
Message 3 of 28
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What are the requirements for business account to be legally ok to sell?


@onlinetogo wrote:
 ... the only reason for me wanting to get business account is that fees can be much lower according to what I've researched..... 

For eBay accounts in the US, there are lower final value fees for Store subscribers, regardless of whether they have a business account. There is no reason for you to have a business account if you don't operate as a business.

 

https://pages.ebay.com/help/account/how-to-register-business.html

 

Fees for sellers who don't have a Store:

http://pages.ebay.com/help/sell/fees.html

Fees for sellers with Stores, including a table showing the FVF rates, which vary by category:

http://pages.ebay.com/help/sell/storefees.html

Message 4 of 28
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What are the requirements for business account to be legally ok to sell?

Ebay definitely DOES differentiate between business and personal accounts. I signed up a couple of months ago and was asked to choose. I don't really know what the difference is as the fees are the same and both can have stores. I think maybe the business account allows multiple sign ins?

 

Message 5 of 28
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What are the requirements for business account to be legally ok to sell?

I thought I saw something on the shipping board recently that a business acocunt can offer multiple shipping methods, but I may have misread it.

 

Isn't there also something about different promotions they can offer?

 

But I'm not sure any of that would matter to the OP, even if true.

 

 


Forget keeping up with the Joneses. Be the Finklegrubers!
OK kids, time to get the Dodge loaded up again. I hear 'Poppy's By the Tree' calling. This trip might be a long one too.
Message 6 of 28
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What are the requirements for business account to be legally ok to sell?

I went to my town and filled out a form so I am reconized as a business in my town and on my taxes I can write off a % of items like my car, phone, utilities.  I also have to fill out a property tax form every year so the town can tax me on my computer/Printer and desk.  I been doing this for 5 years this way and I never had to pay property tax yet.  I sell part time.

 

Jeff

Message 7 of 28
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What are the requirements for business account to be legally ok to sell?


@chrysylys wrote:

I thought I saw something on the shipping board recently that a business acocunt can offer multiple shipping methods ... 


Any seller who uses the Advanced listing form can offer up to 4 shipping options.

 

The link that I provided above explains the differences for a business account.

Message 8 of 28
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What are the requirements for business account to be legally ok to sell?


@nhfd4976 wrote:

I went to my town and filled out a form so I am reconized as a business in my town and on my taxes I can write off a % of items like my car, phone, utilities. ...


Any seller who uses Schedule C can take the home office deduction if it meets the IRS requirements, regardless of their status with their community.

Message 9 of 28
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What are the requirements for business account to be legally ok to sell?

Hopefully you've had a competent CPA review that process.  IRS auditors just LOVE people that deduct everyday expenses for 'business' purposes.

 

 


Forget keeping up with the Joneses. Be the Finklegrubers!
OK kids, time to get the Dodge loaded up again. I hear 'Poppy's By the Tree' calling. This trip might be a long one too.
Message 10 of 28
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What are the requirements for business account to be legally ok to sell?


@nhfd4976 wrote:

I went to my town and filled out a form so I am reconized as a business in my town and on my taxes I can write off a % of items like my car, phone, utilities.  I also have to fill out a property tax form every year so the town can tax me on my computer/Printer and desk.  I been doing this for 5 years this way and I never had to pay property tax yet.  I sell part time.

 

Jeff


Your town taxes you on your computer, printer and desk??

 

The easier you are to offend the easier you are to control.


We seem to be getting closer and closer to a situation where nobody is responsible for what they did but we are all responsible for what somebody else did. - Thomas Sowell
Message 11 of 28
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What are the requirements for business account to be legally ok to sell?


@the*dog*ate*my*tablecloth wrote:

Ebay definitely DOES differentiate between business and personal accounts. I signed up a couple of months ago and was asked to choose. I don't really know what the difference is as the fees are the same and both can have stores. I think maybe the business account allows multiple sign ins?

 


Business accounts have a lot more tools as far as record keeping and such. You can also link to Ebay, take credit cards in person, and set up on your own website. Can't do that with a personal or Premier account.

The easier you are to offend the easier you are to control.


We seem to be getting closer and closer to a situation where nobody is responsible for what they did but we are all responsible for what somebody else did. - Thomas Sowell
Message 12 of 28
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What are the requirements for business account to be legally ok to sell?


@southern*sweet*tea wrote:
 ... Business accounts have a lot more tools as far as record keeping and such. You can also link to Ebay, take credit cards in person, and set up on your own website. Can't do that with a personal or Premier account.

Those are features of  PayPal accounts, not ebay.

Message 13 of 28
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What are the requirements for business account to be legally ok to sell?


@partial*eclipse wrote:

@southern*sweet*tea wrote:
 ... Business accounts have a lot more tools as far as record keeping and such. You can also link to Ebay, take credit cards in person, and set up on your own website. Can't do that with a personal or Premier account.

Those are features of  PayPal accounts, not ebay.


my bad, it's too early lol

 

The easier you are to offend the easier you are to control.


We seem to be getting closer and closer to a situation where nobody is responsible for what they did but we are all responsible for what somebody else did. - Thomas Sowell
Message 14 of 28
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What are the requirements for business account to be legally ok to sell?

Here, this is for you:

 

 

coffee image.jpeg

Message 15 of 28
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