sell artwork online from my home through Shopify. I create and sell my pay sting online and through word of mouth?
Answer: Hi Jamie, The license you need to sell Artwork products is called a seller's permit.
Business Registration
To operate your online art business legally, you should consider registering your business. Here are some common business structures:
- Sole Proprietorship: This is the simplest form of business structure. You can operate under your own name or a fictitious business name (DBA). However, you are personally liable for all business debts and obligations.
- Limited Liability Company (LLC): An LLC provides personal liability protection, separating your personal assets from your business assets. It offers flexibility in taxation and management.
- S Corporation: An S Corp is a tax election that allows you to be taxed as a pass-through entity, avoiding double taxation. It also provides personal liability protection.
Choosing the right business structure depends on factors such as liability protection, tax implications, and complexity of formation and maintenance.
Licenses and Permits
Depending on your location and the nature of your business, you may need to obtain certain licenses and permits. Some common ones include:
- Business License: Many cities and counties require businesses to obtain a general business license to operate legally.
- Home Occupation Permit: If you're running your business from home, you may need a home occupation permit to comply with zoning laws.
- Sales Tax Permit: If you sell tangible goods, you may need to collect and remit sales tax. A sales tax permit is required to do so.
It's essential to research the specific licenses and permits required in your area, as they can vary by location and industry.
Other Considerations
- Employer Identification Number (EIN): An EIN is a unique number assigned by the IRS for tax purposes. It's required if you have employees or if your business is structured as a partnership or corporation.
- Intellectual Property Protection: Consider protecting your artwork and brand through trademarks, copyrights, or patents, depending on the nature of your creations.
- Insurance: Business insurance can help protect your business from potential risks and liabilities. Common types include general liability insurance and professional liability insurance.
By properly registering your business, obtaining necessary licenses and permits, and considering other legal aspects, you can ensure that your online art business operates legally and minimizes potential risks.
First, in 36832, you need a seller's permit because you need to buy the Artwork Accessories materials wholesale.
Second, because, "Jamiekerart," is an assumed name, you need to obtain a DBA certificate, an LLC, or a corporation for it.
Third, all businesses need to obtain a business license and or a home occupation permit.
Finally, when you sell your Artwork Accessories items, you need to charge sales tax. So, if you sell a Artwork bracelet at $10, you need to charge 8% tax. That makes the total $10.80.