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Starting a(n) Business Licenses & Tax IDs

Hi, I'm Chihuahua Get Resale Certificate For A Dba Online Art Store

12074 Get Resale Certificate For A Dba Chihuahua Elijah Online Art Store Sole Proprietorship 88666 Online Art Store 7 Galway NY

, Chihuahua.

Hi, I'm Chevonte Starting Home Based Business On Etsy Online Art Store

FAQs - More...
I am an artist and I want to start a home based business on Etsy. I will be making different kinds of merchandise with my art on it to sell on Etsy, to customers in all 50 state from my home online.

, Chevonte.

Do I Need a License to Sell Art?

What other permits and Tax IDs Does a  to sell arts Business Needs to Legally Start business operations?

A selling arts business needs a sellers permit if it sells or leases products or equipment that is taxable.

  All products, art sold is taxable.

In addition, a business must decide on the business type of organization as a sole proprietor, LLC, partnership or corporation.

Furthermore, a general business permit and a federal tax ID number is also required for any of the above business type organizations.

The only exception to a federal tax ID number is a  to sell arts sole proprietor, who can use a ss# instead of a Federal ID.

However, even sole proprietors as well as all other business type organizations that are employers, independent contractors, LLCs, or corporation must obtain a federal tax ID number.

Any type of  to sell arts business organization, including sole owners, must obtain a state employer tax ID if hiring employees.  Finally, a  to sell arts sole owner (i.e., an one person business) can obtain and use a federal ID as a business tax ID instead of the social security number and, in addition, he or she can form an LLC or set up a corporation instead of organizing as a sole proprietor.

To sell arts businesses do not need any surety bond insurance either but they can optionally purchase it and also purchase a general liability business insurance or home business insurance.

✔ Biz Structure

You can choose to be a(n) Online Art Store :

Sole Proprietor,
LLC,
Corporation or
Partnership.
After you decide and select your business entity, you need licensing.

✔ Biz License

Galway Business Tax Registration ( Business License)
All businesses including home, online or mobile BUSINESS need a BUSINESS license because they are BUSINESSES.

✔ DBA Biz Name

A(n) Online Art Store business using a DBA Doing Business As Trade Name in Saratoga County , i.e., starting businesses using a company name other than the legal (given name) owner's name, need a(n) DBA Doing Business As Trade Name Registration. For example, you start a(n) Online Art Store business and you call it "Ultra Online Art Store Co". You will need to file a trade firm name for it.

✔ Seller Permit

Also, keep in mind that in NY though, a business license and a DBA is necessary for most businesses but if your business sells any taxable items, you will need a sales tax ID number. (A.K.A state id, wholesale, resale, reseller certificate, about $39 for most states).
Seller's Permit

✔ Federal EIN

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.

✔ State EIN

If you are thinking of hiring help, you will need a state employer ID and an IRS number employer ID. I.e., a NY Federal Tax Id Number ($29) and a(n) NY State Employer Tax Number

✔ L L C

Instead of filing a fictitious business name DBA Filing (about $49 plus state and legal newspaper publication fees) in Galway, Incorporate in NY or form a(n) NY LLC .

If you will set up a corporation or form an LLC, you will not have to file a DBA (Doing Business As) unless your corproration or LLC name will be different that the busienss name you will trade under. Businesses that use the full legal name of the owner as a business name do not need to register an assumed business name. So, for example, your name is "John X Doe" and you use that as a business name.

✔ Incorporation

If you do form an Sole Proprietorship llc or incorporate (about $49 plus state fees for most states) your Online Art Store business instead of just filing a fictitious business name (dba), it will help you avoid legal and financial personal liability arising out of business transactions and you will not have to register the Galway business name. Instead of filing a Saratoga County fictitious business name (our service fee includes dba business name filing and legal paper publication) you can elect to incorporate in NY or form an NY LLC (starts @ $49 plus state fee for most states & includes bylaws and LLC operating agreement)..

Free Seller's Permit