Photo: Ann poan

Do I need a business license to sell a book on Amazon?

The short answer is no. You don't need a business license to sell products online including Amazon. This is because most products that are being sold on Amazon are not Federally regulated.

startupbros.com - Do I need an LLC or Business License to Sell on Amazon? - StartupBros

Is digital marketing for introverts?

Yes. Digital marketing, in general, can be a great fit for introverted people as marketers often focus more on data than talking directly to...

Last updated Feb 23, 2021

Is Gmail shutting down?

No other Google products (such as Gmail, Google Photos, Google Drive, YouTube) will be shut down as part of the consumer Google+ shutdown. The...

Last updated Aug 6, 2020

Promotion

Every week new entrepreneurs reach out asking for advice in starting their new business. The most common question we get is about needing a business license to sell on Amazon. For this post we’re going to focus on marketplaces like Amazon and its competitors. When starting an online business it’s important that we understand how to do everything the right way.

In fact, this should also be an exciting time for you!

You’re going out there and taking action, more action than most people.

But people are making things way more complicated than it needs to be. You can get lost and keep running around in circles trying to figure out all of the Federal, State, and Local Business licenses that exist. Here’s what’s important. The difference between an online business and a side hustle or hobby is the amount of money you’re making. If you’re not making any money then you don’t have a business. You don’t exist in the eyes of the tax man. Focus on what matters first and start making sales.

Look:

Do I Need a Business License to Sell Online?

Let’s answer this question for the most popular online marketplaces:

The short answer is no. You don’t need a business license to sell products online including Amazon. This is because most products that are being sold on Amazon are not Federally regulated. In general, most products sold online are consumer products that don’t require the governments approval. So, If you’re selling on the following marketplaces you don’t need to register a business or have a business license.

Shopify

Amazon

eBay

Etsy

Craigslist

You can buy and sell on any of these sites without forming a business or having a business license. At Startupbros we follow what’s called the Lean Startup Method and that means that we like to prove ideas work before spending a lot of money. This is a great opportunity to validate your business idea, test your branding and figure out if you like selling online before diving in head first. If you’re not making a profit then the IRS is not interested in you or your business. (or lack of business) But once you start to make money, it’s important that you report all of your income come tax time.

How to Register Your Online Business

Here are the following steps you need to take to register your online business once you’re making a profit: Choose a Business Structure Register a DBA “Doing Business As” Name Get a Sales Tax ID Get a Federal Tax ID

Who is the No 1 app in the world?

Most Popular Apps 2021 (Global) App Downloads (mm) Facebook 416 WhatsApp 395 Telegram 329 Snapchat 327 6 more rows • Oct 7, 2022

Last updated Nov 7, 2019

Who is the first self made billionaire?

Madam C.J. Walker Walker c. 1914 Born Sarah BreedloveDecember 23, 1867 Delta, Fifth Military District (Louisiana), U.S. Died May 25, 1919 (aged 51)...

Last updated Aug 11, 2021

Promotion

Choosing a Business Structure

Again, you can start your entire online business without forming a business structure. The main point in doing this is to protect yourself if something happens. The risk is low for something to go wrong and being sued but it can happen. So it’s always better to be safe. A lot of small businesses that start up originally operate as a sole proprietorship. You as an individual are a sole proprietor in the United States. You can go out and start a business selling t-shirts and any income is reported on your income taxes when you file your taxes. There is no need to do anything else in the United States. Owners of online businesses can structure their business as an LLC. Just like Startupbros LLC. It makes sense to do that once you start hiring workers to help you. It’s a great way to separate your business expenses and your living expenses. Consult an attorney or CPA to determine if an LLC or proprietorship is right for you. Both options are great ways to start an online business.

Register a DBA

Registering a DBA is also important if you’re doing business as someone other than yourself. For example, Startupbros LLC has a registered DBA of Startupbros.com because we have a website that is used for our business. If you have a sole proprietorship and you’re selling widgets under the brand “widgets for les ss” then you should be filing a “doing business as” name. Every state has a different way to do this. Check with your local government agency to register.

Get a Sale Tax ID

If you’re selling products online depending on which state you’re in you need to collect sales tax from every state that you do business in. For example, if you live in California and sell t-shirts to someone in Texas then you need to collect sales tax and report it to the state. We cover getting a sales tax permit in this article.

Get a Federal Tax ID

You can’t open a business bank account without a Federal Tax ID also known as an EIN. If you’re operating as a sole proprietor then you don’t need a business bank account but you can separate your funds two separate bank accounts. According to the IRS: “A sole proprietor without employees and who doesn’t file any excise or pension plan tax returns doesn’t need an EIN (but can get one). In this instance, the sole proprietor uses his or her social security number (instead of an EIN) as the taxpayer identification number.”

How many Instagram likes Do you need to get paid?

With just 1,000 or so followers, you can make money on Instagram. Neil Patel, a widely known digital marketing specialist, says the key is...

Last updated Aug 1, 2020

What not to post on social media?

Unless you're a political or religious organization (and even then, it's advised to take caution), avoid publishing anything that could be...

Last updated Jul 25, 2021

Promotion

However if you create your business structure as an LLC then you need to apply for an EIN with the IRS. It’s completely free.

Amazon Specific Business Questions

Do you need a sellers permit to sell on Amazon?

No you don’t. When you’re selling on Amazon you are operating an online business and not selling anything Federally regulated it’s as easy as signing up and selling.

Do you have to be a registered business to sell on Amazon?

No you don’t need to be a registered business to sell on Amazon. Amazon doesn’t require you to register your business but it’s possible your local governments want you to register an online business.

Do you need a business license to sell on the Internet?

As long as what you’re selling is not Federally regulated then you don’t need to have a business license to sell on the internet. We cover what’s Federally regulated here.

Closing

Hopefully this post clears up any lingering questions about starting an online business. It’s easy to feel overwhelmed and think more needs to be done when starting out. Remember, there is no business unless you make money. Don’t even worry about formally registering until there’s income. Focus on getting out there and making your first sale. If you need any more guidance or want to ask any questions at all reach out to us and comment below!

Special Offer…

For 2020 we’ve completely updated and launched a brand new Amazon business course that teaches first time entrepreneurs how to launch their very own physical product Amazon business fast. Importing taxes, business structure and year end tax filing are sections in our new course. If you want to check that out and see if it’s right for you click here… Or -> Join us live for the free presentation on launching an Amazon business in 90 Days <-

startupbros.com - Do I need an LLC or Business License to Sell on Amazon? - StartupBros

Can you see who looks on your Instagram?

Can you see who views your Instagram profile? Instagram doesn't allow users to see who views their profile. So if you look through someone's...

Last updated May 7, 2020

What is 6M mean?

The 6Ms of production – Manpower, Method, Machine, Material, Milieu and Measurement – is a mnemonic representing the characteristic dimensions to...

Last updated Jun 21, 2018

Promotion

What is better than Kafka?

Apache Pulsar incorporates the best features of Traditional Messaging systems like RabbitMQ and Pub-sub (publish-subscribe) systems like Apache...

Last updated Mar 24, 2021

Promotion

Why am I becoming more introverted as I get older?

In a post on Quiet Revolution, Cain confirms what you've probably suspected all along—we act more “introverted” as we age. Psychologists call this...

Last updated Jan 28, 2020