Do You Need A Business License To Sell Ebooks?

06-13-2009, 10:15 PM

I am ALMOST done w/ my 1st site and wanted to know at what point I need to go down and get a business license and do all the proper tax stuff...

I heard anything over $600 in profits in 1 year required a business license, but under that I dont need one. What do you guys do here?

But of course you still need to "claim" EVERYTHING you own w/ the tax man as income I believe.

Thanks guys!! Sheila

artwebster · 06-13-2009, 11:25 PM

This sounds a crazy system. Do you mean to tell me that anybody who has a garage sale and is likely to make $600 in profit needs to have a licence?

I have spoken to many sole traders in America and none of them have mentioned this rule to me - indeed many of them are not even incorporated since they can see the advantages in their position

joshril · 06-13-2009, 11:35 PM

Technically, if you use an assumed name that does not include your surname, you are supposed to at the very least register a dba or "doing business as" name.

The $600 you are referring to is likely the amount at which someone is required to send a 1099 to you and the IRS if you have performed work or services for them. A 1099 could be sent out for any amount, but most of the time they are only sent out for income above $600. If you are selling ebooks, there is no 1099 of course... However, any and all income you make online or offline, even $1, is required to be reported to the IRS as income whether you receive a 1099 or not. Failure to do so can lead to audit, penalties, interest, etc.

bgmacaw · 06-13-2009, 11:36 PM

You'll need to check state and local laws. But, it's likely you do because the government does demand their pound of flesh, especially from small business owners.

Steven Carl Kelly · 06-13-2009, 11:56 PM

The $600 figure refers to federal income taxes, not licensing requirements. Your license requirements will depend on the regulations in your locality.

06-18-2009, 03:22 PM

Quote:

Originally Posted by bgmacaw

You'll need to check state and local laws. But, it's likely you do because the government does demand their pound of flesh, especially from small business owners.

Awesome info, thanks Guys!! Ok, so I will claim every penny I make...don't you loveth the tax man? I sure don't....they did none of the work and risk, but they are out w/ their hands if you succeed...hmmm....

That is so true and funny above...well not so funny Thanks guys!
sheila

06-13-2009, 10:15 PM	#1
simba999 Guest Posts: n/a	Do You Need A Business License To Sell Ebooks? I am ALMOST done w/ my 1st site and wanted to know at what point I need to go down and get a business license and do all the proper tax stuff... I heard anything over $600 in profits in 1 year required a business license, but under that I dont need one. What do you guys do here? But of course you still need to "claim" EVERYTHING you own w/ the tax man as income I believe. Thanks guys!! Sheila
simba999 Guest Posts: n/a

06-13-2009, 11:25 PM	#2
artwebster Brutal honesty's me Join Date: Sep 2008 Location: Coín, Spain Posts: 1,032 Blog Entries: 4 Thanks: 33 Thanked 251 Times in 138 Posts Social Networking Contact Info	Re: Do You Need A Business License To Sell Ebooks? This sounds a crazy system. Do you mean to tell me that anybody who has a garage sale and is likely to make $600 in profit needs to have a licence? I have spoken to many sole traders in America and none of them have mentioned this rule to me - indeed many of them are not even incorporated since they can see the advantages in their position
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06-13-2009, 11:35 PM	#3
joshril Joshua Hayes War Room Member Join Date: Mar 2009 Location: Hillsboro, OR Posts: 1,058 Thanks: 485 Thanked 244 Times in 119 Posts Social Networking	Re: Do You Need A Business License To Sell Ebooks? Technically, if you use an assumed name that does not include your surname, you are supposed to at the very least register a dba or "doing business as" name. The $600 you are referring to is likely the amount at which someone is required to send a 1099 to you and the IRS if you have performed work or services for them. A 1099 could be sent out for any amount, but most of the time they are only sent out for income above $600. If you are selling ebooks, there is no 1099 of course... However, any and all income you make online or offline, even $1, is required to be reported to the IRS as income whether you receive a 1099 or not. Failure to do so can lead to audit, penalties, interest, etc.

06-13-2009, 11:36 PM	#4
bgmacaw Senior Warrior Member War Room Member Join Date: Aug 2008 Location: Atlanta GA Metro Area, USA. Posts: 3,643 Blog Entries: 5 Thanks: 311 Thanked 925 Times in 644 Posts Social Networking	Re: Do You Need A Business License To Sell Ebooks? You'll need to check state and local laws. But, it's likely you do because the government does demand their pound of flesh, especially from small business owners.
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06-13-2009, 11:56 PM	#5
Steven Carl Kelly Trust Christ Alone War Room Member Join Date: Sep 2008 Location: Central Florida Posts: 3,014 Thanks: 63 Thanked 806 Times in 391 Posts	Re: Do You Need A Business License To Sell Ebooks? The $600 figure refers to federal income taxes, not licensing requirements. Your license requirements will depend on the regulations in your locality.
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