Starting a(n) Dollar Store Business Licenses & Tax IDs

Hi, I'm Reyonda 19140 Dollar Store Online discount store licenses and wholesale permit in Philadelphia, PA🛒PA · WHOLESALE

Reyonda · Budget 40 40 Dollar And Under Store · Philadelphia, PA What licenses does an online discount store need in Philadelphia, PA?

Reyonda asked: “I will be buying wholesale clothing, toy..., Reyonda.

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Number One Dollar Store · Hephzibah, GA Obtain Wholesale License In Georgia: what wholesale license does a discount variety store need in Hephzibah, GA?

Bright aisles of party supplies and househol..., .

Dollar Store

✔ Biz Structure

You can choose to be a(n) Dollar Store :

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

✔ Biz License

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

✔ DBA Biz Name

A(n) Dollar Store business using a fictitious business name in Bucks County i.e. you are a business that uses a DBA doing business as trade name to trade that is other than the full legal (first and last -- full name) name of a sole proprietor or a name other than the LLC or Corporation business name need a(n) fictitious business name. For instance you open a(n) Dollar Store business and you name it "Superior Dollar Store Group". You will need to file a fictitious business name for that name.

✔ Seller Permit

In PA Dollar Store you need a resale ID ( AKA seller's permit) if you selling touchable items. (A.K.A state id, wholesale, resale, reseller certificate, about $39 for most states). You will need it if you sell or want to buy wholesale any Dollar Store related items, such as food, materials, or merchandise.
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

In addition you will need a federal and a state EIN if you will hire employees. I.e., a PA Federal Tax Id Number ($29) and a(n) PA 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 Philadelphia, Incorporate in PA or form a(n) PA LLC .

Filing a DBA is not required if you will set up an LLC or form a Corporation. If you will do business under your first and last legal name you will not need to get a fictitious business name.
Also note that even using your first and last name may not help you avoid filing a DBA if the name has a suffix such as "& sons" etc.

✔ Incorporation

If you do form an Retail Online llc or incorporate (about $49 plus state fees for most states) your Dollar Store business instead of just filing a fictitious business name (dba), that insurs that you don't have personal liability for debts and civile liabililty arising from your business dealings and you will not have to record the Philadelphia business name. In lieu of recording a Bucks County trade company name (our filing service fee includes trade name registration and newspaper legal publication for 4 weeks) you can also form a corporation in PA or form an PA LLC (starts @ $49 plus state fee for most states & includes bylaws for the corporation and Limited Liability operating agreement for the LLC that is required to open a business bank account). .

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Philadelphia Reyonda 9/25/2021 1:18 PM .

19140 Dollar Store

Reyonda · Budget 40 40 Dollar And Under Store · Philadelphia, PA

What licenses does an online discount store need in Philadelphia, PA?

Reyonda asked: “I will be buying wholesale clothing, toys, Bluetooth, and similar items and reselling them on my online website. Customers in all 50 states and my home is the office. Everything will be sold in an online store.”

Hi Reyonda, buying wholesale clothing, toys and electronics for an online store starts with the Pennsylvania Sales, Use and Hotel Occupancy Tax License. Suppliers will accept the Form REV-1220 Pennsylvania Exemption Certificate for items you resell. Shipping nationwide means other states' thresholds may eventually require registration there too. Budget 40 40 Dollar And Under Store would need a DBA.

Short answer: In Philadelphia, Pennsylvania, businesses are required to obtain licensing before they start operating. For an online discount store, that means the Sales, Use and Hotel Occupancy Tax License, a federal tax ID number (EIN) and a local business license, plus a structure and name registration.

Buying and selling wholesale in Pennsylvania

Pennsylvania calls its seller's permit the Sales, Use and Hotel Occupancy Tax License. When you buy inventory to resell, the paperwork is a Form REV-1220 Pennsylvania Exemption Certificate. Not a sales tax license. A business selling only to resellers applies for a wholesaler certificate instead; it cannot hold both. Pennsylvania issues a separate wholesaler certificate to businesses that sell only for resale; any retail selling requires the sales tax license instead.

Your Philadelphia filing checklist

LLC – protects personal assets if a customer or supplier dispute turns into a lawsuit
Fictitious Name (DBA) – registers the trade name on your sign, website and invoices
Federal tax ID number (EIN) – required for an LLC with partners or any business with employees
Sales, Use and Hotel Occupancy Tax License – required before the first taxable sale, including online, flea market and craft fair sales
Form REV-1220 Pennsylvania Exemption Certificate – keep a copy on file for every supplier you buy from tax-free
Philadelphia business license – needed even for home-based businesses, which may also need a home occupation permit

If you sell across state lines

Arizona: the Transaction Privilege Tax (TPT) license. Arizona's TPT is a tax on the seller's privilege of doing business, not a tax on the buyer.
Texas: the Sales and Use Tax Permit. In Texas a customer's permit number alone is not a substitute for a signed resale certificate.
California: the seller's permit. A California resale certificate normally shows the buyer's seller's permit number; sellers accept it in good faith to skip tax.

Industry code: NAICS 452990 (All Other General Merchandise Stores)

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