You can choose to be a(n) :
- Sole Proprietor,
- LLC,
- Corporation or
- Partnership.
After you decide and select your business entity, you need licensing.
Business Tax Registration (
Business License)
All businesses including home, online or mobile BUSINESS need a BUSINESS license because they are BUSINESSES.
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A(n) business
Â
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 (A.K.A state id, wholesale, resale,
reseller certificate, about $39 for most states).
Seller's Permit
Note: All businesses need a federal tax ID number except sole proprietors that are not employers and are not independent contractors.
An independent contractor is a self employed business person that receives more than $600 per year from anyone of his or her clients.
IRS rule: The client must issue a 1099 form to the independent contractor and the independent contractor must have a federal tax ID.
However, even sole owners may obtain a federal ID and use it as a business tax ID instead of using their own social security number as a
business tax ID number. However, all other licenses that apply to sole proprietors as discussed here are requited regardless of getting
a federal tax ID number.
I.e., a Federal Tax Id Number ($29)  and a(n)  State Employer Tax Number Â
Instead of filing a fictitious business name DBA Filing (about $49 plus state and legal newspaper publication fees) in
, Incorporate in  or form a(n) LLC .Â
If you do form an llc or incorporate (about $49 plus state fees for most states) your business instead of just filing a fictitious business name (dba),
business name.
or form an .
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