They determined that online sellers, even without a physical presence in the state, must collect and remit sales tax in those states that require it. Air quality boards are popping up all over the United States, so its important to check if you need a specific environmental license or permit with your local government. Having a physical presence, a home-based office or . Find out what you need to know to get a business license to sell online. Once you've gone through this . Starting 2022 the threshold drops to $600. We recommend that if you have questions about any tax reporting requirements, you should consult with your tax advisor, accountant and/or visit IRS.gov. Most people file a schedule c with their taxes. Mercari Shops allows users to manage their items and stock completely from their smartphone. Assistant Assigning Editor | Small-business finance, personal finance. If you dont submit your substitute W-9 form when requested, your account and selling experience may be restricted. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. If you run an online business, you register the business and obtain required licenses in the state and city where you base the business. and several other required permits give your business credibility, but its also required to operate legally and establish your company. The short answer to whether a business license is a requirement for online selling: yes. The prepaid shipping labels through either USPS or Fedex each come with $100 shipping insurance. For small business owners, Mercari is an excellent option to consider for many reasons: Some states provide temporary sellers permits to cover specific time periods or events. Youll want to check federally as well as on the state, county and town level. If you have a corporate entity, you file for anEmployment Identification Number (EIN). The employer identification number is something like a social security number for your business: It identifies you as a business and enables you to stay compliant with taxes and other regulations. This way, you can be confident that you have the licenses needed to start a business and legally operateand you can avoid facing fines or penalties from a missing mandatory license down the line. This is a fairly common license, especially for businesses that are shipping from home. Read more. If youre hiring employees, you will likely need a home occupation permit as well. So if you are merely engaging in a hobby, you do not need a business license. | . Editorial Note: We earn a commission from partner links on Forbes Advisor. Here are the basic licenses you may need: Almost all home-based small businesses need a Home Occupation Permit to legally operate. Most likely, you operate your Etsy business from home. Therefore, you should work with your local town agency to figure out the health permits you need to operate your business in the area. A seller's license is a state permit that allows you to sell your goods to people in that state. Usually issued by your local, county, or city government, a fire department permit enables you to be open to the public. Licenses and permits are different names for the same thing: permission from a government authority to own or do something, usually in exchange for a fee. This will only apply to some businesses, but, again, youll want to check in with your state to figure out what regulations they have around DBA licenses. To list an item, you'll need to: Click "Sell." Upload up to 12 photos of the item you want to list. The process is simple and youll receive your number right away. In this overview, The Ascent breaks down state licensing requirements and how they apply to your e-commerce business. Almost every business both online and otherwise will need a business license to operate. Issued to the individual or business entity listed on W-9 form, Includes unadjusted gross reportable payments, Includes number of transactions aggregated from each unadjusted gross reportable payment, Only issued if individual or entity met the 1099-K reporting threshold for the calendar year. Your business may require one or more general business licenses in your home state. If youre a sole proprietor, you own name is the official name of your business, though you may choose to use a dba, such as Joe Jones, dba Affordable Lawn Care. The answer is more than likely, yes. A seller of goods on Etsy may need a license or permit from municipal, county, state, or federal agencies regulating businesses. Check what licensing requirements you need for a home-based business in your city and state. Most business licenses require renewal annually or biennially. If youre going to incorporate as a. other than a sole proprietorship, its essential. In fact, filing for a small business license or permit can be one of the most important steps in getting your business set up. Almost all businesses will need one or multiple licenses to start and operate their businesses legally, whether at the local, state, or federal level. The Ascent does not cover all offers on the market. We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. When you complete the W-9 form, we will need your legal first and last name and SSN/ITIN, but you can also enter your doing business as (DBA) and EIN (which will be utilized instead of your SSN/ITIN). Whether youre looking for vintage vinyl or a better way to handle your taxes, theres a good chance youll shop for it online. Its important to look into the specific requirements for your local jurisdiction to figure out what exactly you need to apply for a license to sell online. NerdWallet Compare, Inc. NMLS ID# 1617539, NMLS Consumer Access|Licenses and Disclosures, California: California Finance Lender loans arranged pursuant to Department of Financial Protection and Innovation Finance Lenders License #60DBO-74812, Property and Casualty insurance services offered through NerdWallet Insurance Services, Inc. (CA resident license no. Therefore, just like at the local and state level, it's important to know which federal licenses you may need to start your business and get them if requiredor you could be facing fines and penalties. There isn't one straightforward answer because whether or not you need a business license depends on several variables, such as where you operate your business, how you operate it, etc. They may be different some may allow you to apply online and some may require you to mail in forms or show up in person. Dana Miranda is a certified educator in personal finance (CEPF) who has been writing and editing since 2011, covering personal finance, careers and digital media. There are several other considerations to take into account. For example, sellers who sell over $100,000 or have over 200 transactions annually. Your citys business license department will, of course, be specific to your location, so you'll need to locate the office on your own to obtain this type of license. While the process of registering your business name on a state level is usually fairly easy, registering for a trademark is trickier. So if you are looking to become a seller on Etsy, you are in good company. Something went wrong. If you are in a jurisdiction where your services are taxable, you can treat them like any other taxable good. Learn more about the differences between a, It is not mandatory to have an employee identification number or EIN to run a business. In fact, filing for a small business license or permit can be one of the most important steps in getting your business set up. This tax and personal information includes the following: For certain tax classified business entities, such information may also include: Mercari requires tax identification numbers to verify that the owner of the Mercari account matches the information on record with the IRS and applicable state taxing authorities. Some thoughts on how you've done it would be greatly appreciated. You may be required to send copies of your driving license, passport, or other identifying document that includes the following information: . Once you fill out and file your local business license application, the city zoning department usually checks to make sure that your. You obtain these licenses through the relevant licensing board in your state. Again, this requirement varies state by state, so youll want to check in with your local jurisdiction to figure out whether or not you need a sellers permit. Merchant Fees Charge to Buyer (any separately stated merchant fees charged to the Buyer, such as Zip or other payment financing fee). small business licenses can help you find and apply for a Home Occupation Permit specific to your state. Youll need to check with local, county, and state officials to determine the requirements for your business. Contact a qualified business attorney to help you navigate the process of starting a business. You might not have known it, but some cities and counties have restrictions on what your businesss signage can look like. A legal entity organized similar to a corporation, except profits cant be distributed to owners. Do You Need a Business License To Sell on Etsy. Ultimately, many home-based businesses have to go through the same process to get the licenses needed to start any kind of business. What do you need to sell on Mercari? Etsy's seller policies do not require you to have a business license to sell on their platform. An Etsy seller needs a business license if their Etsy activity is a business. Legally reviewed by Tim Kelly, J.D. Times have changed and technology has caught up to online business. If you meet the $600 gross sales threshold and receive a 1099-K form, you should keep a copy of the 1099-K form with your tax records. Types of business licenses: State licenses and permits, Most states have offices that are made specifically for issuing state business licenses, but you can also refer to the, SBAs state business license office locator, However, an EIN is not required for all businesses. This might seem secondary, but youll need your earnings to go into a separate business account, since its crucial to separate your business and personal assets. She is based in Santa Monica, California. Thank you for being a part of our community as we continue to improve your Mercari experience. Once you have fully registered, you should have an EIN that allows the IRS to identify your business for tax purposes. With the growth of e-commerce, more and more sales transactions were left untaxed. What you should do is pay up for turbo tax self employed. What if my online business distributes software? Pre-qualified offers are not binding. If you are a sole proprietor, you use your social security number. You should only pay taxes on profit. Gross sales includes the sold items price, buyer paid shipping, and merchant fees charged to buyers. The, is something like a social security number for your business: It identifies you as a business and enables you to stay compliant with taxes and other regulations. These tax permits, once again, will depend on the state you operate your business in, so be sure to refer to the tax permits you need for your state. However, first, you should know what the laws say about selling online through Etsy. Selling goods online has never been more popular. Getting a business license to sell online shows credibility, but it is also required to operate legally. Mercari's official policies can be found here. In addition, you may need business licenses at the county and local levels. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. Well send you a reminder when its time to submit your tax identification information. Before joining Forbes Advisor, he was a content producer at Fit Small Business. Randa Kriss is a lead writer and small-business specialist at NerdWallet. Make sure you have information about your business entity type, any required inspections or permits that are specific to the products youre selling, the name youll be operating under and, in some cases, an EIN. individual v. business) For certain tax classified business entities, such information may also include: Legal Name of Entity (if different from individual) You can find out which licenses and permits you need through: You may have to file for licenses and permits with state, county and municipal agenciesfor example, a sales tax permit from the state, health permits through a department of health, and planning permits through the city. Selling goods online has never been more popular. However, if youre a full time reseller or llc youre likely already keeping track. The United States or any of its agencies or instrumentalities. | Last updated September 21, 2022. What licenses are required to start a business in your home? Luckily, you dont have to worry about shelling out thousands of dollars for a business license. It is step by step. Other types of licenses and permits may have a longer and more involved review process. What kinds of licenses do you need to run an online business? The SBA's list of. Mercari is not responsible for reminding you to update your W-9 information should your tax classification/information change. All Rights Reserved. Transportation and logistics: This federally regulated business practice might apply to a number of different small business owners, so its worth paying attention to. Yet success with an online business goes way beyond setting up a great e-commerce website. The scoring formulas take into account multiple data points for each financial product and service. Remember that 10% so you charge enough to make an effort worthwhile. If you're trying to determine: "Do I need a business license specific to my occupation?" Transportation and logistics: This federally regulated business practice might apply to a number of different small business owners, so its worth paying attention to. Her work has been featured in The Washington Post, The Associated Press and Nasdaq, among other publications. Fish and Wildlife Service to see, Does your business use cargo shipping overseas? Company Statutes 3. Pre-qualified offers are not binding. Many businesses can operate without an operating license, so you may not have to pay anything. For employment tax purposes, contract employees are generally not counted as employees. Remember that many business licenses expire after a certain amount of time. So, unfortunately, any money generated from your Etsy shop is taxable. This article originally appeared on JustBusiness, a subsidiary of NerdWallet. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Some of them will not apply directly to you, but its essential to know about all of them so you can make certain you have the right operating paperwork before you start selling online. OK92033) Property & Casualty Licenses, NerdWallet | 55 Hawthorne St. - 11th Floor, San Francisco, CA 94105. In fact, this card is so good that our experts even use it personally. 2022 Patent 5.Tax Registration Certificate for "Value-Added Tax" 6. Types of business licenses: Local licenses and permits, Your citys business license department will, of course, be specific to your location, so you'll need to locate the office on your own to obtain this type of license. Although home-based business owners will need different types of licenses, they will in fact, still need to obtain certain licenses to operate legally. FindLaw.com Free, trusted legal information for consumers and legal professionals, SuperLawyers.com Directory of U.S. attorneys with the exclusive Super Lawyers rating, Abogado.com The #1 Spanish-language legal website for consumers, LawInfo.com Nationwide attorney directory and legal consumer resources. The SBA's list of state-by-state small business licenses can help you find and apply for a Home Occupation Permit specific to your state. If you buy materials or products for resale to your customers, you will also want to get a resellers permit, also called a resale certificate, to avoid paying sales tax on those purchases. Alcohol: You need a business license from the federal government along with your state business license if youre selling alcohol as a part of your business. Working with a business lawyer to determine and file the necessary licenses and paperwork. As an example, to apply for business licensing in Alaska, it will cost $50 for your one- or two-year license, and once that license expires, you'll have to pay the same $50 fee to renew. Your state might also require some additional sales tax permitting, so, again, make sure you check in with the regulations in your area. Sellers that making $15,000 or more in gross sales and 150 or more transaction are required to submit their taxpayer information. To sell your goods or services, you may be required to get one or more of these types of business licenses in your state: The process to get a business license varies by stateand its not required in every state for every type of business. No sellers permit is needed since Mercari processes the payment and collects the sales tax. If you have a business, you need a business license. Many or all of the products featured here are from our partners who compensate us. Alabama, California, Florida, Hawaii, Illinois, Louisiana, Maryland, Massachusetts, Washington, and the District of Columbia do not accept out-of-state resale certificates. The IRS hasnine factors in determining if your activity is a hobby or a business. If your company sells products that qualify to be taxed, most states require you to obtain a sellers permit whether your store has a physical location or is online-only. Join. You do not need to get an EIN, although there are some reasons you may want a different number for your business activity. When it comes to business paperwork, you'll have several important documents to complete, which may lead you to wonder: Do you need a business license? You'll need to get a federal license or permit if your business activities are regulated by a federal agency. NMLS ID: 1486447 PO Box 60178, Palo Alto, CA 94306, IRS Form W-9, Request for Taxpayer Identification Number (TIN) and Certification, 1099-K Reporting and Disclosure Information, Social Security Number (SSN) or Individual Tax Identification Number (ITIN), Tax Classification (Reporting status for income tax purposes i.e. The licenses you need also may depend on the types of products that youre selling. Robert Beaupre leads the SMB team at NerdWallet. The most common types of business licenses include: It is not mandatory to have an employee identification number or EIN to run a business. Additionally, your homeowner's association may have rules for home-based businesses. Mercari requests and collects Form W-9s in order to file Form 1099-Ks, for those users who meet filing requirements. Consultants or freelancers might. Visit the. Depending on your location and the nature of your work, you may need a mix of licenses and permits at the federal, state, county, and municipal levels to open and run an online business. The last figure is your profit if the item sells at your pricing. Legal First and Last name Social Security Number (SSN) or Individual Tax Identification Number (ITIN) Mailing Address Tax Classification (Reporting status for income tax purposes i.e. How to register for a business license Please try again later. However, if you want to open a business bank account or hire employees, you will need to get one. federal Employer Identification Number (EIN). 7 min read In an effort to maintain a level of accountability, marketplaces such as Mercari have been updating their W-9 requirements for sellers. Corporations tend to have a more fixed operating structure and may be better than LLCs for attracting outside investors. With some exceptions, here are the main types of business licenses and permits you'll need to secure with your local or city government to start your business. According to Etsy's Fees and Payment Policy, In some states, Etsy will collect the sales tax amount from the buyer and pay this to the relevant tax authority." OK92033) Property & Casualty Licenses, NerdWallet | 55 Hawthorne St. - 11th Floor, San Francisco, CA 94105. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. If you have at least $20,000 in gross sales, and 200 transactions, Mercari will send you a 1099-K form. Visit our attorney directory to find a lawyer near you who can help. Aviation: If your business involves operating or manufacturing and maintaining aircrafts, you need special licenses and permits from the federal government. When you complete the W-9 form, we will need your legal first and last name and SSN/ITIN. Sole proprietors are fully responsible for business debts and obligations, and they report business income as self-employment income on their tax returns. The Foreign Account Tax Compliance Act (FATCA) requires certain foreign (non US) financial institutions to report all United States account holders that are specified as United States persons. Although there is a document called a business license, there are also several requirements for selling online that youll need to go through in order to begin your e-commerce business. A business license is a document that gives legal approval to run a particular type of business in a certain location. If you're wondering "Do I need a business license to run an online business?" This will give you permission to operate under a trade name. Traditionally, businesses registered for sales tax in states where they had a physical presence. Mining, drilling, and nuclear energy: If your business is involved in drilling natural gas, oil, or other natural resources, you probably need to have a drilling permit from the government to actually do so. One additional thing to note: In some states, such as California and Idaho, there are whats called . In the wake of the decision, most states enacted specific requirements for online sellers. As a one-person Etsy shop, you act as a sole proprietor. For more information, please refer to this IRS publication, provided by the IRS. In many jurisdictions, you may only need a license for your business if your online sales exceed a specific dollar amount or a set number of sales transactions. Getting on their mailing lists is a great way to stay on top of licensing changes in the jurisdictions where youre active. However, if you dont want to operate your business under your own name or if you want to operate under a business name other than the one you registered with your state then youll want to look into a DBA license. Find her at danasitar.com. This is important because you want to be able to weigh your items in order to select the correct shipping label in Mercari. you will have three business days to send the item. In general, if you have employees or operate your business as a corporation or partnership, you need an EIN. If you see the name already registered, do not use it. We make business formation EASY. Consider the W-9 form as part of the input for the Form 1099-K. 3. As with other pieces of the process, when you should apply for a business license to sell online will vary depending on where youre selling. local Small Business Administration office. Elizabeth Gonzalez is a legal and regulatory expert writing for The Ascent and The Motley Fool. you should reach out to your state's government offices. Not only does getting a. However, the inquiry doesn't end there. If you are engaging in a hobby, you don't. Requirements for online selling: 6 common types of business licenses and permits, Although there is a document called a business license, there are also several requirements for selling online that youll need to go through in order to begin your. Do I file as self employed, business owner, reseller. For example, if an item was purchased (sold) in December 2022, but the transaction was completed in January 2023, it will be reportable in 2023 on Form 1099-K. You can view your gross sales by logging in to Mercari.com and going to Account > Seller Dashboard > Sales Report and generate a report to include only Completed transactions during the calendar year in question. Randa is based in New York City. At the end of the calendar year, Mercari will provide a 1099-K document which details your gross sales. Pre-qualified offers are not binding. We'll send you a reminder when it's time to submit your tax identification information. The requirements for obtaining a business license will vary among areas, as will the fees to obtain one (usually, these are relatively low). Well go through the answer to this question as well as many other considerations to take into account as youre establishing your online business. However, Etsy may handle the sales tax obligation for you. Mining, drilling, and nuclear energy: If your business is involved in drilling natural gas, oil, or other natural resources, you probably need to have a drilling permit from the government to actually do so. The Streamlined Sales Tax Governing Board provides excellent resources on sales tax permits for online sellers, including a helpful guide to remote seller laws in every state. A state, the District of Columbia, a U.S. commonwealth or possession, or any of their political subdivisions or instrumentalities. However, it is hard to follow the IRS guidelines to determine whether you have a business or a hobby. Examples are elevator permits, special event permits, and food service permits. This may seem like a lot of work, but licensing is just as fundamental to the success of your e-commerce business as product positioning and tracking the right e-commerce KPIs. On the whole, however, here are the state-level licenses that may be required to start a business. Additionally, if you're starting a business that is technically outside of your closest city limits, you may need to acquire this license from your county government office. Sales are considered reportable and are aggregated toward the 1099-K threshold when the transactions complete. An LLC requires registering with the state and filing the appropriate forms. Weve put together a helpful FAQ for you below to learn more about these requirements and the W-9 process. Should your tax classification/information change $ 20,000 in gross sales cookies, Reddit may still use cookies. Partnership, you do not need to know to get a business is... State level is usually fairly easy, registering for a home Occupation permit to... Enough to make an effort worthwhile permit from municipal, county and town...., most states enacted specific requirements for online sellers through this will give you permission to operate and! To update your W-9 information should your tax classification/information change licenses are required to legally. U.S. commonwealth or possession, or city do you need a business license to sell on mercari, a home-based business in your city and state whole however. Ein that allows you to be open to the public federally as well as on whole! You complete the W-9 form when requested, your homeowner 's association have... Check what licensing requirements you need a business license if their Etsy activity is a for! The transactions complete Reddit may still use certain cookies to ensure the proper functionality of our platform license or from! Functionality of our community as we continue to improve your Mercari experience a lawyer near you who help... Legally operate details your gross sales and 150 or more transaction are required to operate legally up online! May want a different number for your business as a corporation, profits! Contact a qualified business attorney to help you find and apply for a home Occupation permit as well follow... Goods to people in that state agencies regulating businesses necessary licenses and paperwork account as youre establishing online! Editorial Note: we earn a commission from partner links on Forbes Advisor send... A better way to stay on top of licensing changes in the Post. Use your social security number ve gone through this need special licenses and from. District of Columbia, a fire department permit enables you to update your information! Like any other taxable good, passport, or any of its agencies or instrumentalities Almost every both! W-9 process business days to send copies of your driving license, passport, or city,. Or manufacturing and maintaining aircrafts, you need a business in your state. With their taxes federal agencies regulating businesses 1099-K form get one & Casualty licenses, NerdWallet | 55 Hawthorne -. State licensing requirements you need to check federally as well as on market. Operating structure and may be better than LLCs for attracting outside investors I file as self employed business! Their taxpayer information Small-business specialist at NerdWallet which details your gross sales, and 200,! Thing to Note: we earn a commission from partner links on Forbes Advisor your items in order to the! Pay anything fact, this card is so good that our experts even use personally... An employee identification number or EIN to run a particular type of business in your home state self-employment on. For those users who meet filing requirements refer to this IRS publication, provided by the IRS guidelines determine. Some states, such as California and Idaho, there are whats called the doesn! Money generated from your Etsy shop is taxable permit as well as other..., although there are several other required permits give your business activity among other publications that making 15,000! Become a seller of goods on Etsy, you operate your business involves operating or and! This IRS publication, provided by the IRS 've done it would be greatly.... You navigate the process of starting a business license to sell online your local business license application, the breaks! General business licenses can help appeared on JustBusiness, a fire department enables! File as self employed are merely engaging in a hobby or a business license to operate as well enough! Chance youll shop for it online trade name to know to get a business in home... Or manufacturing and maintaining aircrafts, you may be restricted jurisdiction where your services are,. Business lawyer to determine and file your local business license shelling out thousands do you need a business license to sell on mercari. Or other identifying document that includes the sold items price, buyer shipping... Trade name Reddit may still use certain cookies to ensure the proper of... Purposes, contract employees are generally not counted as employees that includes the sold items price, paid... Good that our experts even use it personally if the item sells at your.! That allows you to update your W-9 information should your tax classification/information change in gross.. Your company the growth of e-commerce, more and more sales transactions were left untaxed shipping... Rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform fees! Multiple data points for each financial product and service helpful FAQ for you run a business license to online! Particular type of business in your state 's government offices specific requirements for your business require... Become a seller on Etsy, you act as a one-person Etsy shop is taxable business. Their tax returns through Etsy the Motley Fool purposes, contract employees are generally not counted as employees get... Help you navigate the process is simple and youll receive your number right away business income as income! Will provide a 1099-K document which details your gross sales and 150 or more in sales. This question as well as many other considerations to take into account as establishing! Answer to whether a business lawyer to determine and file the necessary licenses and permits have! Fact, this card is so good that our experts even use it any kind business... United states or any of its agencies or instrumentalities and stock completely from their smartphone to this as! First, you are in good company whole, however, if are! Of starting a business, you do not need to get the licenses need! Your Mercari experience many business licenses in your city and state transactions were left untaxed, contract are... Not cover all offers on the state and filing the appropriate forms you & # x27 ; need! And youll receive your number right away your profit if the item sells at your pricing gross sales and or... Publication, provided by the IRS hasnine factors in determining if your activity is document. Mercari is not responsible for business debts and obligations, and merchant fees charged to.... Local business license if their Etsy activity is a requirement for online selling: yes in gross sales 150! Fit small business licenses expire after a certain location items and stock completely from their smartphone business goes beyond! A document that gives legal approval to run an online business? our attorney to. Any of their political subdivisions or instrumentalities state level is usually fairly easy, registering for a business shipping and... Going to incorporate as a. other than a sole proprietorship, its essential whether. Business? to follow the IRS guidelines to determine the requirements for online sellers payment and collects sales!, it is not mandatory to have a business license is a lead writer and Small-business specialist NerdWallet... To your state business owner, reseller, buyer paid shipping, and food service permits, Mercari will you. As well if you 're wondering `` do I file as self employed association may have rules for home-based.... Driving license, passport, or other identifying document that includes the following:! Sales and 150 or more general business licenses in your home state and... Hiring employees, you can treat them like any other taxable good thousands of dollars for home-based. To determine the requirements for your business involves operating or manufacturing and maintaining,. Associated Press and Nasdaq, among other publications are in good company chance. Llc requires registering with the state, county, and they report business income as self-employment income on their returns. Business both online and otherwise will need your legal first and last name and.... Payment and collects the sales tax obligation for you below to learn more about these requirements and W-9! Federal agencies regulating businesses to worry about shelling out thousands of dollars for a business to... From your Etsy shop, you operate your business you find and apply for a trademark is trickier requirements... Their political subdivisions or instrumentalities an EIN, although there are whats called or all of the products here! Business credibility, but some cities and counties have restrictions on what your signage... States or any of its agencies or instrumentalities a corporate entity, you may want different... Content producer at Fit small business so, unfortunately, any money generated from your Etsy shop taxable! Shop for it online reach out to your state 's government offices can operate without an operating,! Seller 's license is a fairly common license, so you charge enough to make an worthwhile! Meet filing requirements proprietors are fully responsible for reminding you to update W-9. Additional thing to Note: we earn a commission from partner links on Forbes Advisor, he a., Mercari will provide a 1099-K form have restrictions on what your businesss signage can like! To sell on their platform try again later are in a jurisdiction where your services are taxable you. Our platform you need to get a federal agency and apply for a home-based business a. & Casualty licenses, NerdWallet | 55 Hawthorne St. - 11th Floor, San Francisco, 94105... Of licensing changes in the wake of the input for the Ascent does not all. Cant be distributed to owners finance, personal finance the necessary licenses and permits from the federal.. You 're wondering `` do I need a business license some thoughts on how you 've done it be...