Thursday, December 27, 2007

How to start a business

There's a lot of money to be made selling things online from your home. There's almost no overhead and you can work on the side of a full-time job. One question that almost always comes up is, "do I need the same licenses that I would for a regular commercial business?"

The answer is YES. As long as you make more than a trivial amount of gross revenue, you are considered a business and operating without a license is illegal. It doesn't matter if you are amazon.com or just selling some clothes on eBay.

This link will help you determine exactly what you will need.

You'll definitely need a business license and federal tax ID for IRS identification purposes. If you want anything wholesale at all, you'll need that wholesaler's/seller's permit too. Additional forms are needed if your business name is different from your legal name and if you have employees - don't take any risks. Take that test and run your business, legally.

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