Do I Need A Business License To Sell Items Online?

by UTOBC
20 replies
I've got some doubts and need clarification! Could You please help!

What kind of business license do I need for selling things online?
Do I need a business license for working as affiliate of any CPA networks?
Do I need a business license for getting paid by Google's Adsense program?

Thanks
#business #items #license #online #sell
  • Profile picture of the author nicholasb
    better call your state departments and ask, grab a phonebook and start dialing
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  • Profile picture of the author JennSpencerIM
    get a great accountant to put together the right biz for you!
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    • Profile picture of the author Exfilius
      Originally Posted by JennSpencerIM View Post

      get a great accountant to put together the right biz for you!
      Maybe the person, unlike you, knows how to read laws, and doesn't want to waste money on an accountant.

      I suggest you visit your local tax institution's website and start reading. You probably won't need a special license, nor you will have to register a company. It's pretty pointless to register a company if you are not making any money.
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  • Profile picture of the author tbjason
    Wow I would never hire an accountant to put together a biz for me. No offense to accountants but they are by far business experts.

    You can find all of this information online by searching Google. Search for your local laws and regulations. You should be able to find the official government sites with all the information right there from a trusted source.

    In most cases you only need a license if you are selling items inside your local state or city.

    But there are other great benefits to forming a corporation. You will get some great tax advantages as well.
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    • Profile picture of the author Matt MacPherson
      Originally Posted by tbjason View Post

      Wow I would never hire an accountant to put together a biz for me. No offense to accountants but they are by far business experts.

      You can find all of this information online by searching Google. Search for your local laws and regulations. You should be able to find the official government sites with all the information right there from a trusted source.

      In most cases you only need a license if you are selling items inside your local state or city.

      But there are other great benefits to forming a corporation. You will get some great tax advantages as well.
      You'll only see tax savings once you pass a certain level of income.
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  • Profile picture of the author jhn2001
    depends on what country you are in ,also you do not require any business license for participating in google adsense and cpa program . Although you can have a business account and do it the way you want but you can do your adsense as an Individual too .without any license .
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    • Profile picture of the author Kim Meridian
      Congratulations on starting an online business in Siem Reap, Cambodia (near Angkor, correct?).

      I am an Internet marketer, not an attorney or tax specialist; However, I am an excellent researcher.

      Here are some ideas I found that will point you in the right direction:

      The Siem Reap Chamber of Commerce (NOT an affiliate link) supports the local business incubator and has networking opportunities. Ask them what you need for licensing and required paperwork.

      In fact, the Chamber had an event this week on Internet searching for businesses (see the activities and events on their website).

      Good luck!

      Kim
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  • Profile picture of the author SageSound
    Originally Posted by UTOBC View Post

    I've got some doubts and need clarification! Could You please help!

    What kind of business license do I need for selling things online?
    Do I need a business license for working as affiliate of any CPA networks?
    Do I need a business license for getting paid by Google's Adsense program?

    Thanks
    Generally speaking, this will depend on the laws in the legal jurisdiction where you live.

    You don't mention where YOU live, so most of the replies you get are going to be relative to wherever THEY live.

    If you live in India, what good is it to find out answers for people in Melbourne, Australia or New York City?

    That said, you can usually find out the requirements for any given program by going to THEIR web site and reading the application.
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  • Profile picture of the author UTOBC
    Thanks for all ideas, much appreciated!
    I've found many websites and squeeze pages that selling products online through Clickbank, Amazone, eBay and the like. They seem have no care much about the law. Do you think they've got the license, what about you?
    Cuze I need to start my brand new online blog that sells some ebooks!
    Thanks if I could get more ideas!
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    • Profile picture of the author Jeff Henshaw
      In most countries you will not need any license to sell items. Trade has gone on for tens of thousands of years (and more) all over the world.

      To sell on the Internet should be just as easy, notwithstanding some countries have difficulties, as many international payment processors are unavailable to their citizens.

      If in doubt, check with the appropriate authorities in your country.

      In almost every country, you will be expected to pay some sort of tax, so check this too, if it relates to monetary earnings.

      In the UK, the Inland Revenue expects anyone starting a business to inform them of that, prior to launching the business. You will need to declair both earnings and expenses in the annual tax return.

      You do not need to be incorporated, a partnership, or business in the EEC, in order to sell, but if you start earning significant money, then speak to an accountant or financial advisor, as it may be to your financial advantage to form a legal company.

      Just my thoughts,

      Jeff.
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  • Profile picture of the author RentItNow
    I think it is about $60 to register a business online where I live. Don't really need a corporation until you are pullin in big bucks or you have high liability (it just introduces more recurring paperwork). Depending on how much you make, you may do good to hire an accountant for a couple hundred bucks at the end of the year, which he/she will likely save you come tax season anyway.
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    I have no agenda but to help those in the same situation. This I feel will pay the bills.
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  • Profile picture of the author seasoned
    What kind of business license do I need for selling things online?
    Do I need a business license for working as affiliate of any CPA networks?
    Do I need a business license for getting paid by Google’s Adsense program?
    I doubt ANYONE cares where the income comes from. So the answer to all is probably the same. That VARIES though. I think MOST places in the US would say YES!(In the US, the states, cities, and sometimes counties, get involved. The federal government only charges for some profit and income, which could be on your personal return.) The state USUALLY gets involved only if you are not a sole proprietor or general partnership, or have to collect tax. The county usually gets involved with some other permits or DBAs. The CITIES issue business licenses. Elsewhere, it is ANYONE'S guess!

    Steve
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  • Profile picture of the author ecdavis
    If you live in the United States, you generally need a sales tax permit, also known as a resale certificate, and sometimes as a sales tax exemption (and sometimes under other names, as well) if you want to do the following:

    (1) purchase physical products from true wholesale supplier, and
    (2) sell physical products to residents of your own state of residence.

    The actual condition of selling products online whether, for example, on eBay, your own ecommerce site, through a newsletter, and so forth does not in itself require a business license. The requirement for permits and licenses issues from Federal and state laws. So, for example, there is no such thing as an eBay business license, but if you do business on eBay and sell to residents of your own state, then you would probably need a sales tax permit (unless you live in New Hampshire) so that you could charge them sales tax, which you would then remit to your state treasury department. Let's say you do business on eBay and hire employees to handle bookkeeping and shipping and handling. The you would probably also need the Federally granted Employer Identification Number (EIN) as well as a sales tax permit. (For more information on the EIN, see irs.gov.)

    This applies whether you are selling online or off. If your scope of business includes your local city and county and you also do business under some other name then your own legal name, you may need a DBA permit (doing business as . . . ). If you are working from home and have employees, are engaged in business that may require construction or extra parking, or lots of people on the premises, then additional zoning and other permits may apply. A rule of thumb is always check with your local authorities and local office of the Small Business Administration to be sure you are compliant with city, county, and state regulations. A valuable source of advice is your own state department of revenue, which you can find by Googling, "name of state + department of revenue."

    Generally speaking, you would not need a business license or other specific permits to engage in CPA marketing or affiliate marketing unless any of the above apply. However, always follow the rule of thumb above.

    I have noticed some nonsense on the web that you need to copyright your business name. This is actually impossible because copyright law does not allow the copyrighting of business names, though you can trademark your business name. Please see copyright.gov and www.uspto.gov/smallbusiness/trademarks/ for more information.

    Evan
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  • Profile picture of the author seasoned
    Well, in the US the sales permit is often called a "Sales tax and use permit". You need it, in the US, if you buy taxable products in your state with NO tax, or if you sell some taxable product or service where the tax collected from the customer exceeds the amount you paid as tax for the components.

    The idea is that if you run a stationery store, and buy pens wholesale, suppose you bought them for $8, and sold them for $9, and the sales tax were 10%. If you use one, you are subject to a use tax of $.80. If you SELL them, you have to collect and remit $.90. If the SAME pens were taxed when you bought them, using would cost no more, and you can STILL collect the $.90, but you only have to remit $.10, because the other $.80 was already paid by your supplier. Some things might vary if your supplier doesn't have a presence in your state.

    I used the stationery store as an example merely because they ARE likely to use stuff from their stock. I could have used a computer store, etc...

    Steve
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    • Profile picture of the author Kim Meridian
      All of the US-centric advice is great, but the person who started this thread asking about business licensing requirements is from CAMBODIA. His location says Siem Reap.

      His provincial government might require paperwork that we don't need here in the US.

      Kim
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      • Profile picture of the author seasoned
        Originally Posted by Kim Fleming Meridian View Post

        All of the US-centric advice is great, but the person who started this thread asking about business licensing requirements is from CAMBODIA. His location says Siem Reap.

        His provincial government might require paperwork that we don't need here in the US.

        Kim
        Well, I DID say US, and DID say areas varied.

        The fact is that even a person in the US might not know the details unless they are NOW doing it in the SAME city! Gee, Nevada changed rules on corporations several years back. When I got a nevada corporation, I found that California frustrated attempts to collect sales tax! So if someone from "Siem Reap" thinks s/he is going to get good complete personal advice here, GOOD LUCK!

        Steve
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        • Profile picture of the author Joe Mobley
          I've noticed that this thread has mainly talked about place of residence. Depending on the business structure used, where someone lives may have little or no effect on business activity.

          If someone can legally setup an LLC in Texas, for example, then their licensing, collection of taxes, and other business activities will be governed by US and Texas law.

          Something to think about.

          Joe
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          • Profile picture of the author seasoned
            Originally Posted by DigitalJoe View Post

            I've noticed that this thread has mainly talked about place of residence. Depending on the business structure used, where someone lives may have little or no effect on business activity.

            If someone can legally setup an LLC in Texas, for example, then their licensing, collection of taxes, and other business activities will be governed by US and Texas law.

            Something to think about.

            Joe
            *****WRONG*****! Sales tax laws in the US are governed by a LEGAL PRESENCE!!!! WHY do you think some businesses say, add sales tax if you are in state 1, state 2, or state 3!

            If you open a business in texas and it is ONLY in texas, and you deliver to a place in texas, you follow TEXAS rules. OUTSIDE of texas you can IGNORE it! Let's say you open up a warehouse in NJ, NOW things are JUST like before UNLESS the destination is NJ, and you must follow NJ rules. HECK, some large companies are finding some states consider their AFFILIATES to be a legal presence, and they have to pay tax accordingly, and THAT is why they are dropping affiliates in those states!

            And you can NOT collect sales tax for one state for a sale made in another. It is actually ILLEGAL and COULD land you in court, with the plaintiff being the state you are collecting taxes for.

            Steve
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            • Profile picture of the author Joe Mobley
              Originally Posted by seasoned View Post

              *****WRONG*****!
              Steve,

              Let's see where we might disagree.

              Sales tax laws in the US are governed by a LEGAL PRESENCE!!!!
              Yep, I'm with you so far.

              WHY do you think some businesses say, add sales tax if you are in state 1, state 2, or state 3!
              Okay. I'm still with you.

              If you open a business in texas and it is ONLY in texas, and you deliver to a place in texas, you follow TEXAS rules. OUTSIDE of texas you can IGNORE it! Let's say you open up a warehouse in NJ, NOW things are JUST like before UNLESS the destination is NJ, and you must follow NJ rules. HECK, some large companies are finding some states consider their AFFILIATES to be a legal presence, and they have to pay tax accordingly, and THAT is why they are dropping affiliates in those states!
              We're still good...

              And you can NOT collect sales tax for one state for a sale made in another. It is actually ILLEGAL and COULD land you in court, with the plaintiff being the state you are collecting taxes for.
              I have no idea how you pulled this from my previous post. But okay.

              My previous post was a point about residence and, as you put it, LEGAL PRESENCE. If I have a Texas LLC but live in Jacksonville, Florida, my business will have to play by Texas rules.

              I don't know if UTOBC can create a US based entity. If he can, he would be playing by that states rules regarding licensing, collection of taxes, and other business activities.

              Hope that clarifies some points.


              Joe
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  • Profile picture of the author UTOBC
    I personally thanks to all replies. Much appreciated!!!

    All of the US-centric advice is great, but the person who started this thread asking about business licensing requirements is from CAMBODIA. His location says Siem Reap.
    His provincial government might require paperwork that we don't need here in the US.
    Kim, you are right, I'm at Siem Reap-Angkor! I've just start my new site and need more improvments with that kind of stuff like business License. Due to selling products online within small business and internet marketing is rarely happended in Cambodia. I've searched in the local area and no such people has involved in the internet marketing schemes today. I would so proud that I am the one who starts on this in Cambodia!

    Maybe, I'll try to search a little more about this for the local requirements.
    Anyway, thanks for your great ideas and helps as always!

    Kind regards,
    UTOBC
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