Registered Business?

Hi. I am new to this Board. My question is do we need to have a business license to sell on Ebay? Do we need to file Tax Document?
Also can I list items on the local newspaper and sell things like IPODS without getting busted?
Thanks.

Hello, The simple answer is No you don't need a business license to trade on ebay BUT if you intend to sell items other than personal effects in large numbers to make a profit then you should register as a business and pay the correct taxes etc. I am sure the USA has similar guidelines to the UK where they will slam you if you get caught fiddling the Tax man. At the end of the day it's up to you and your own conscience??

Hi, i am new. I also have the same problem about business lisense on website sale, not e-bay. I don't know anything.Is need a business lisense and pay tax and submit information to local country? Thanks for you help!

Without knowing what country you're from, I can't help you with whether you have to get that stuff or not. All I can say is that if selling through ebay or website or wherever is to be a 'job' and not just selling your used cds and clothes, then I'd recommend it. I know to get a tax id in the US, it's free. Takes a matter of minutes to fill out the form, and another minute or two to get the number (you can get it at Link hidden: Login to view - for US based businesses).

I do know that in the US, if you make so much within a tax year, and don't report it, you can get in trouble for tax fraud. I'm not sure what the amount is though.

For anyone who is UK based and unsure of this issue you dont need to register until you make over 58k revenue per annum. Once you hit this figure you have to start paying taxes and therefore submit your details to HM & Customs.

Thank you jadzia1182 and auction-4-you.

you're welcome :D Glad to be of help.

Nice link Bianca :).

Within the U.S., you do not have to charge your customers tax unless they are within your own state. If they are within your own state, you do not have to charge them sales tax if you both have tax id #'s. Otherwise, they are supposed to be charged sales tax.

As far as claiming taxes goes, you are supposed to claim online sales profits just as all other income. I doubt that many ebay sellers do but if you make too much they may get ya :shock: .

If you plan to really get serious I would get a state/city business license, a federal tax ID, and claim your income accurately. If you're selling here and there, I suppose it's up to you.

BTW tax regulations vary from state to state. The info I just provided relates to states which I have lived in and many others that I am familiar with. Contact your local gov. to get the details.

I'm glad you liked the link Diablo. Figured anyone in the US who is serious about their business could make good use of that. I know I had my tax id before I ever placed my first auction. Figured better safe than sorry.

In New Zealand also you only have to register the business if you make more than $40k per year.
There also is no business licence number which i keep getting asked for. there is a number that you when when you register a business for IRD but this is not the number you use apparently.
Alot of places in the states find it hard to accept that fact and have had a hard time dealing with places who wont send me stock. so in the end it is their loss

in Australia you dont need a ABN (australian business number) if your total is $50k a year. That includes expenses and sales.