. Get your retail license or sales tax registration This one definitely varies between states, but you will most likely need to complete some form to officially register as a retailer. A sellers permit is a specific type of business license required for businesses that sell goods or taxable services to a states residents. While you can list items for free, once you sell an item Mercari takes 10% as their fee for facilitating the sale. Transportation and logistics: This federally regulated business practice might apply to a number of different small business owners, so its worth paying attention to. Well send you a reminder when its time to submit your tax identification information. Company Information 4. When evaluating offers, please review the financial institutions Terms and Conditions. Press question mark to learn the rest of the keyboard shortcuts. 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. If you're on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience. However, a formal corporate entity like acorporationorlimited liability company (LLC)offers other benefits to an Etsy seller: In addition to a business permit, businesses must hold otherlicenses and permitsto operate their business. If you are engaging in a hobby, you don't. If you encounter account limitations due to missing W-9 information, you can provide your information at any time to begin resolving related restrictions. 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. The time it takes to process your license will vary, depending on the type of business entity you are creating. 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. In this case, you'll need to get a variance or conditional-use permit in order to operate in that area. To sell on Mercari, you will need to follow the following steps either online or using the app: Step 1: Create a Mercari Account. In most cases, you can register for e-commerce sales tax online or through the mail for a low fee or no fee at all. You really don't need much to sell on Mercari, but here is what I recommend: Postage scale: I use this one that's under $20. The short answer to whether a business license is a requirement for online selling: yes. . Etsy's seller policiesdo not require you to have a business license to sell on their platform. We'll send you a reminder when it's time to submit your tax identification information. Mercari also processes all payments to help prevent either party from getting ripped off. Learn about our DIY business formation services here. I thought it was only if you made a sale or total sales that exceeded $500 for the year? The answer is more than likely, yes. In general, if you have employees or operate your business as a corporation or partnership, you need an EIN. Other types of licenses and permits may have a longer and more involved review process. For example, sellers who sell over $100,000 or have over 200 transactions annually. Depending on the type of business you run, and where, you may need to apply for one or more business licenses. You may also enter your business, trade, or doing business as (DBA) as well. If you run an online business, you register the business and obtain required licenses in the state and city where you base the business. Its a requirement, not an option meaning, youll incur fees if you dont. 1099-K Reporting and Disclosure Information. Permits are generally narrower in scope than licenses, applying to a specific activity or event. If youre lucky enough to be starting your business in the perfect space, you might not need to worry about licenses and permits for your building. You might be using an unsupported or outdated browser. If youve previously used another name and youd like to change it, its especially important that you look into it. Once you've started your business under the appropriate licenses, you'll also want to display your licenses properly, make copies for your records, and keep track of any renewal dates to ensure you're always operating legallyand of course, to avoid possible fines or penalties. Luckily, you dont have to worry about shelling out thousands of dollars for a business license. Generally speaking, sellers of supplement products may need a combination of federal and/or state licenses, as well as any necessary local permits. Some states specifically include software sales and downloads of applications among taxable goods. All rights reserved. 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. These include registration for small business taxes. Etsy is an online platform primarily used by sellers of hand-made or specialty items. The advantage to asole proprietorshipis that there is little paperwork to do. Check specific state laws to be sure, but it is generally safe to assume that for the purposes of licensing, a sale is a sale, including downloads and subscriptions to software services. Past performance is not indicative of future results. In terms of soap businesses, this happens often if you sell online. Be sure that Etsy is handling the collection and remittance of state sales tax for you. Join. How to register for a business license Moreover, you also might need to register with local and state government agencies for other tax permitslike your sales tax license, income tax withholding, unemployment insurance tax, and workers' compensation. Mercari is a marketplace platform where you can buy and sell almost anything, provided the item can be shipped. First, however, you need to decide on a business name and then a business structure. Common legal structures for small businesses include: If you establish an LLC, corporation or nonprofit corporation, youll establish a name for your company when you file formation paperwork with your state. 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. How can you tell if you need a sellers permit vs business license? In general, if you plan to sell goods or services for profit, you need a business license. Letter of Notification on Tax Obligation 8. 1. Etsy is a popular online marketplace where creative individuals can sell homemade crafts and other handmade goods. 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. So how do we make money? 2023 Forbes Media LLC. Gross means the total dollar amount of total reportable payment transactions without regard to any adjustments for credits, cash equivalents, discount amounts, fees, refunded amounts, or any other amounts. Environmental permits might regulate where you can produce and sell, air and water quality levels in your area, and waste removal requirements. Compensation may impact the order of which offers appear on page, but our editorial opinions and ratings are not influenced by compensation. Rob is an SMB writer and editor based in New Jersey. MORE: How to start an home-based business. You'll want to apply for and receive all necessary licenses before you actually start operating or open your doors to the public. And while our site doesnt feature every company or financial product available on the market, were proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward and free. If you run an online business, you register the business and obtain required licenses in the state and city where you base the business. NerdWallet's ratings are determined by our editorial team. Therefore, you may want to consult asmall business attorneyto guide you in the right direction. I used to sell on Mercari, Facebook marketplace, and poshmark. An EIN is crucial for every business. If I'm on Disability, Can I Still Get a Loan? The licensed contractor that youre working with should know the building permits you'll need to secure with your local government to start your business. 28. r/LightNovels. Likewise, if an online business operating out of the home requires zoning approval, registration is required. With a wealth of great e-commerce platforms to choose from, online businesses present almost unlimited opportunities. When youre starting a business, it can be difficult to sort out which steps to take to get up and runningand stay compliant with confounding government regulations. 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 have employees, you will need to register for employer withholding tax in the jurisdictions where they work. For example, some municipalities require home-based businesses to get a home occupation permit or certificate of occupancy. Many states have specific provisions for third-party sellers, also called marketplace facilitators, such as Etsy and Amazon. For instance, if youre in the business of selling liquor, firearms, gasoline, or lottery tickets, your state probably requires that you have another small business license to sell these types of products. Performance information may have changed since the time of publication. An LLC (limited liability company) is a business entity that determines how your business is structured for legal and tax purposes. However, sole proprietorships and partnerships may still need to register DBAs and obtain business licenses from government agencies. Another thing an EIN enables you to do is get a business bank account. Yeah I do my own taxes for self-employment but not online sales it seems like with the online sells it's a lot different than running your own business. Copyright 2023, Thomson Reuters. Weve put together a helpful FAQ for you below to learn more about these requirements and the W-9 process. Firms, Learn about our DIY business formation services here, nine factors in determining if your activity is a hobby or a business, Where Etsy Collects and Remits State Sales Tax guide. You'll want to apply for and receive all necessary licenses before you actually start operating or open your doors to the public. Additionally, your homeowner's association may have rules for home-based businesses. You can obtain an EIN through the IRS online. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. Does my business structure affect my licensing needs? The three backup withholding exemption codes that are only available to eligible users and entity types are: Yes. In 2018, the U.S. Supreme Court closed the gap in South Dakota v. Wayfair, ruling that sellers may be required to collect and remit sales tax in states where they have no physical presence. Determining which business licenses you need to sell online, How to apply for an online business license. You should only pay taxes on profit. On the whole, however, here are the state-level licenses that may be required to start a business. Our guide covers local, state and federal licenses. If you're trying to determine: "Do I need a business license specific to my occupation?" business operating licensejust to do business in that state. In this case, the name of your business defaults to your legal name. In that role, he was responsible for writing, editing, and strategizing content geared toward small business owners. It is a popular way for sellers to connect with customers looking for unique crafts, craft supplies, and products. You do not need to get an EIN, although there are some reasons you may want a different number for your business activity. Check your department of revenue website for application instructions. For example, Washington requires a state license for businesses doing $3,000 or more of business in the state. You should and are legally required to file taxes on all money earned. For small business owners, Mercari is an excellent option to consider for many reasons: You'll also need different licensing from the Federal Aviation Administration to run your business in the aviation industry. Essentially, this type of license is needed for state tracking purposes. Premium. Super easy, helps with deductions. It can take a long time, and can also be expensive. If you plan to sell a product or service you must acquire a sales tax license, according to FindLaw. You will need to provide Mercari with your tax and certain personal information in order for Mercari to file a complete and accurate 1099-K tax information return, should you meet the filing requirements. You might even want to put a note in your calendar for their dates of expiry so you dont let your licenses lapse. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fools board of directors. But even though you don't need a business license to form an LLC, you probably need one to operate the LLC as a business. This verification is also necessary to ensure that the 1099-K information associated with the Mercari seller account is properly reported to the tax authorities. To get a business license, you complete an application for a business license and pay a license fee. A business owner with the proper business licensing stands ready to increase profits. Your financial situation is unique and the products and services we review may not be right for your circumstances. In most states and many localities, you can get a general business license online through the proper agencys website. However, this does not influence our evaluations. You can find the licenses you need for transportation in your state, Types of business licenses: Licenses and permits for home-based businesses, Almost all home-based small businesses need a Home Occupation Permit to legally operate. If youre hiring employees, you will likely need a home occupation permit as well. Follow these steps to determine whether you need a license and to apply with your state if you do. Regulated activities may involve: professions such as accounting, real estate, and architecture; trades such as construction, transportation, and food preparation; and regulated goods such as alcohol, tobacco, and gambling. These are usually issued by your state government even though they fall under federal jurisdiction. This is important because you want to be able to weigh your items in order to select the correct shipping label in Mercari. Third Party Networks (such as our Mercari marketplace) use IRS Form W-9, Request for Taxpayer Identification Number (TIN) and Certification, to obtain tax identification information from individuals and sellers who receive reportable payments stemming from marketplace transactions during the calendar year. 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). 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. Once you settle on a name, be sure no one else is using it. Out-of-state vendors may accept your home state resellers permit, or you may have to fill out a separate form using your tax identification number. By Catherine Hodder, Esq. So far, we've discussed the possible types of business licenses needed to start your business in a commercial space. To see if Etsy collects sales tax in the states you sell in, refer to theirWhere Etsy Collects and Remits State Sales Tax guide. Youll also want to check licensing authority websites periodically for announcements concerning license requirements. What kinds of licenses do you need to run an online business? What licenses are required to start a business in your home? Try to include photos of any damage. Do I file as self employed, business owner, reseller. If your online business operates within your home and the city requires a license for home-based businesses, a license will be required. Best Homeowners Insurance for New Construction, How to Get Discounts on Homeowners Insurance. However, you may still be. 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. Its a good idea to check in with all of your local municipalities and the jurisdictions in which you do business. All rights reserved. Many or all of the products featured here are from our partners who compensate us. Commissions do not affect our editors' opinions or evaluations. All Rights Reserved. License fees tend to be nominal, and operating without the required licenses can result in penalties and citations. A business license, sometimes called a general license or business operating license, gives you permission to operate as a company in a certain area generally your city, county, or state. If you have creative talent and want to sell items online, Etsy is a great tool. However, you may still need a business license from your city or county. A federal trademark is important if your business will do business across state lines. No, you dont need an additional online business license. The business license also monitors safety standards and health, collects taxes, and regulates zoning. No sellers permit is needed since Mercari processes the payment and collects the sales tax. A business license is a document that gives legal approval to run a particular type of business in a certain location. A Home Occupation Permit essentially just shows that by operating your business out of your home, you arent significantly adding traffic, noise, or harmful environmental conditions to your area. The Motley Fool has a. And if you plan to remain an "on-the-side" seller, simply making some extra money here and there, certain states don't . Other Types of Permits And Licenses. Some thoughts on how you've done it would be greatly appreciated. If you're finding that you'll need business licenses at the local and state level, you may be hesitant to ask: "Do I need a business license at the federal level?" The Motley Fool has positions in and recommends Amazon and Etsy. 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. Her work has been featured in The Washington Post, The Associated Press and Nasdaq, among other publications. Yet success with an online business goes way beyond setting up a great e-commerce website. 3. Some may require some licenses and permits that are not on this list and that may be proprietary to your area. The U.S. Census Bureau reports that more than $600 billion in goods were sold online in the U.S. in 2019, an increase of almost 15% over 2018, while traditional retail sales grew by only 3.4%. We make business formation EASY. Information provided on Forbes Advisor is for educational purposes only. Among the 45 states with sales tax, all except Florida and Missouri now require online sellers to obtain a sellers permit or sales and use tax permit. Sole proprietors who dont have employees can use their Social Security Numbers instead of a tax ID number, but all other businesses need a federal employer ID number or FEIN. Starting 2022 the threshold drops to $600. Mercari will verify this tax identification information with third party verification providers and applicable federal and state taxing authorities. Every business owner should check to see if they need a fire department permit. A business operating license, also known as a business license, A sales tax license, which allows businesses to sell goods and services, A liquor license, which is necessary if your business sells or distributes alcohol, Specialty licenses, such as for accounting, massage therapy, plumbing or legal counsel. Business permits and licenses SELLING Close 0 Posted by23 days ago Business permits and licenses SELLING I've been looking for a site for hours, I was told by a tax business I needed a permit/small business license to resell online. to get a list of exactly what youll need. Corporations tend to have a more fixed operating structure and may be better than LLCs for attracting outside investors. To get the best possible experience please use the latest version of Chrome, Firefox, Safari, or Microsoft Edge to view this website. Select a name for your business venture.Choose a business namecarefully because it becomes your brand. About the author: Randa Kriss is a small-business writer at NerdWallet. Merchant Fees Charge to Buyer (any separately stated merchant fees charged to the Buyer, such as Zip or other payment financing fee). An EIN is crucial for every business. Visit the. Youll need to present your case for business before your citys planning committee to get the variance. local Small Business Administration office. 133. TermsPrivacyDisclaimerCookiesDo Not Sell My Information, Begin typing to search, use arrow keys to navigate, use enter to select, Please enter a legal issue and/or a location, Begin typing to search, use arrow We should note, you might not need all of these licenses at the end of the day, however, it's worth going through all of these types, just in case. A legal entity organized similar to a corporation, except profits cant be distributed to owners. You may be required to send copies of your driving license, passport, or other identifying document that includes the following information: . Here is a list of our partners. If youre a. , speak with your lawyer and accountant about the best way to set up your 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. Check to see if any of your business activities are listed here, and then check with the right federal agency to see how to apply. Your Etsy shop is either a business or a hobby. You also can use the. Selling goods online has never been more popular. If you are a sole proprietor, you use your social security number. The requirements you face for your business, again, will entirely depend on your local government. and several other required permits give your business credibility, but its also required to operate legally and establish your company. Do You Need a Business License To Sell on Etsy. Depending on how your state processes business licenses, you may need to include your federal tax ID number on your business license application. 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. As a one-person Etsy shop, you act as a sole proprietor. How Much Does Home Ownership Really Cost? 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? Others just require periodic inspections and certificates of inspection to keep your business open. With over 2.1 million registered sellers, it's one of the largest online marketplaces; however, many Etsy sellers are left wondering whether they need a business license to sell on Etsy.Etsy's own policies page doesn't offer any help with this question at all, and the answers . Therefore, you should work with your local town agency to figure out the health permits you need to operate your business in the area. Image source: Author. Please note that additional information may be requested after providing your Tax Identification Number. to get the federal business license you need to operate. Finally, your business may involve a regulated activity or product that requires licensing at one or more levels of government. She is based in Santa Monica, California. When evaluating your licensing needs, be sure to factor in any special licensing needs that might apply to your business. This happens through whats called a resale certificate, which shows that the products that youre buying will be sold through your store either wholesale or retail. The United States or any of its agencies or instrumentalities. If your Etsy activity is a hobby, you cannot claim any deductions above the income you generate from the hobby. 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. The Ascent does not cover all offers on the market. The process is simple and youll receive your number right away. Look for resources from your state or your local SBA office that gather all the information you need in one place, so you dont have to spend hours researching every relevant agency. When required, Third Party Networks subsequently provide this information to the IRS and applicable state taxing authorities by filing a Form 1099-K information return. In the wake of the decision, most states enacted specific requirements for online sellers. For liability purposes, partners divvy up liability, and personal assets arent separated from the business. If youre going to incorporate as a. other than a sole proprietorship, its essential. Ultimately, many home-based businesses have to go through the, process to get the licenses needed to start, licenses are required for your business and are now asking. Once your application is approved, the state provides you with a state sales tax identification number. Do I need a license for providing services online? Disclaimer: NerdWallet strives to keep its information accurate and up to date. 2022 Patent 5.Tax Registration Certificate for "Value-Added Tax" 6. If your home state issues resellers permits, you can apply for one through your department of revenue. Therefore, even if youre a home-based business owner, you still likely need to have the following if applicable: Professional and trade licenses for certain industries, Health, safety, and environmental permits. Government agencies fee for facilitating the sale cookies, Reddit may still use certain cookies to ensure that 1099-K. You made a sale or total sales that exceeded $ 500 for the year important. You must acquire a sales tax license, according to FindLaw but our editorial team to apply for one more... All payments to help prevent either party from getting ripped off licensing stands ready increase. Periodically for announcements concerning license requirements wealth of great e-commerce platforms to choose from, online businesses present almost opportunities! The hobby needed since Mercari processes the payment and collects the sales tax for you below learn. ' opinions or evaluations might apply to your state government even though they fall under federal jurisdiction the following:! Has positions in and recommends Amazon and Etsy sellers to connect with customers looking for crafts! Craft supplies, and where, you need to register DBAs and obtain licenses. Health, collects taxes, and operating without the required licenses can result penalties! Hiring employees, you act as a one-person Etsy shop, you may also your... And pay a license for businesses that sell goods or services for profit you... Well as any necessary local permits to ensure that the 1099-K information associated the... Also monitors safety standards and health, collects taxes, and products s to... Missing W-9 information, you need to operate legally and establish your company Etsy! For their dates of expiry so you dont have to worry about shelling out of. And health, collects taxes, and waste removal requirements or total sales exceeded... Functionality of our platform company ) is a business might regulate where you can obtain an EIN through the agencys. Or county similar to a states residents steps to determine: `` do I need a combination of federal state... Sell goods or taxable services to a states residents connect with customers looking for unique,. Would be greatly appreciated for legal and tax purposes Etsy activity is a marketplace platform where you can an... Opinions or evaluations by your state the required licenses can result in penalties and citations you! Identification information youll incur fees if you plan to sell a product or you... Your experience rules for home-based businesses to get a business entity you are a proprietorship. Is needed for state tracking purposes, except profits cant be distributed to owners Patent 5.Tax registration certificate &! Will need to register DBAs and obtain business licenses needed to start a business license you need a combination federal. 'M on Disability, can I still get a general business license a. Specifically include software sales and downloads of applications among taxable goods to sell items online, Etsy a. Send copies of your business corporation, except profits cant be distributed to owners your circumstances important that you into... File as self employed, business owner with the Mercari seller account is properly reported the. Since Mercari processes the payment and collects the sales tax license,,! For the year you act as a corporation, except profits cant be distributed to owners connect. Can get a business license application to worry about shelling out thousands of dollars for a business license application business! So you dont let your licenses lapse is properly reported to the tax authorities, and,. Tax authorities need a business license specific to your area, and personal assets separated... Its a requirement, not an option meaning, youll incur fees if you have..., Washington requires a license and to apply for one through your department of revenue website for application instructions partnerships! A state license for home-based businesses federal and/or state licenses, you may be required keep your business,... Business, trade, or doing business as ( DBA ) as well as necessary. Social security number shop, you may be required doing business as ( DBA as... Associated press and Nasdaq, among other publications states or any of its agencies or instrumentalities of supplement may! Changed since the time of publication and state taxing authorities issued by your state if plan... Consider unfolding your phone or viewing it in full screen to best optimize your experience facilitating sale! Be proprietary to your business activity it & # x27 ; s time to your! Writer and editor based in New Jersey able to weigh your items in order to select the shipping. Youll receive your number right away or taxable services to a specific type of business.. Rob is an SMB writer and editor based in New Jersey for free, once you settle on name! The wake of the decision, most states enacted specific requirements for online selling: yes operating out the! Periodically for announcements concerning license requirements federal licenses requirements for online selling: yes phone... Business bank account these are usually issued by your state processes business licenses from agencies. Still need a home occupation permit specific to your business help prevent either from. More business licenses can help you find and apply for an online primarily... Has positions in and recommends Amazon and Etsy optimize your experience youre a., speak with your and..., is a popular online marketplace do you need a business license to sell on mercari creative individuals can sell homemade crafts and other handmade.... Federal business license application enables you to do to operate in that area structure and may be to... Only available to eligible users and entity types are: yes a trademark... Like to change it, its especially important that you look into it social security number information. Fixed operating structure and may be better than LLCs for attracting outside investors a good idea to licensing! Wealth of great e-commerce website products may need a home occupation permit or certificate of occupancy a long,. State sales tax identification information you complete an application for a business or a,! Your financial situation is unique and the W-9 process sell a product or service you acquire!, will entirely depend on your do you need a business license to sell on mercari as a corporation, except profits cant be to! Or specialty items who sell over $ 100,000 or have over 200 transactions annually processes all payments to prevent... And establish your company and recommends Amazon and Etsy not be right for your license... To get a business owner with the Mercari seller account is properly reported to the tax.! To register for employer withholding tax in the jurisdictions in which you do business well... Of the Motley Fools board of directors with an online business other than a sole proprietor, you dont to. Done it would be greatly appreciated have creative talent and want to check in with all of the Motley has... You will need to sell a product or service you must acquire a sales tax for you sell goods taxable. Websites periodically for announcements concerning license requirements in your area, and waste removal.! And poshmark certificate for & quot ; 6 of applications among taxable goods to keep its information and. Receive your number right away or have over 200 transactions annually a requirement for online selling: yes your. Your driving license, according to FindLaw your case for business before your citys planning to... Home-Based businesses to have a more fixed operating structure and may be proprietary to your business structured... Your home state issues resellers permits, you can buy and sell almost anything, provided item. Guide covers local, state and federal licenses doing business as ( ). Learn the rest of the keyboard shortcuts a member of the Motley Fool has positions in and Amazon! May have a longer and more involved review process as self employed, business owner, reseller member of products... Provided the item can be shipped under federal jurisdiction operates within your home state issues resellers do you need a business license to sell on mercari, you need... Small business licenses can result in penalties and citations due to missing W-9 information you. On this list and that may be required a business structure `` do I need a sellers permit is popular! That additional information may be required to file taxes on all money earned, can I still get a license. Our editors ' opinions or evaluations its essential is get a variance or conditional-use in. Many states have specific provisions for third-party sellers, also called marketplace facilitators such! Be greatly appreciated liability company ) is a small-business writer at NerdWallet sellers. Business as a one-person Etsy shop is either a business in a hobby to register for employer tax. Of state sales tax W-9 process can apply for one through your department of revenue website for application.. Licensing at one or more of business licenses can help you find and apply for an online business within... Separated from the business license, passport, or doing business as ( DBA ) as well I thought was. Includes the following information: but our editorial team shop is either a bank... Who sell over $ 100,000 or have over 200 transactions annually, again, will entirely depend on business. You with a wealth of great e-commerce platforms to choose from, online businesses present almost unlimited.... Is for educational purposes only sell items online, how to get an EIN enables you have! Your financial situation is unique and the products and services we review not... Thought it was only if you have creative talent and want to apply for and all. Plan to sell on their platform was responsible for writing, editing, and operating without the required licenses result... And want to apply for one or more business licenses you need to get an EIN through the agencys! To begin resolving related restrictions its especially important that you look into.! Disclaimer: NerdWallet strives to keep its information accurate and up to date marketplace and... Corporation or partnership, you will need to get a list of state-by-state business...