| Wayward · Pikeville, KY Starting An Ecommerce Business In 41501: how do I get an online apparel and accessories shop in Pikeville, KY licensed? The owner asked: “I am an apparel designer starting an ecommerce shop. I will sell tees, hoodies, tanks, and accessories such as keychains, earrings, and license plates, starting online on Etsy, eBay, and my own online store.” Selling tees, hoodies and accessories on Etsy, eBay and your own store still counts as selling taxable goods, so Kentucky expects you to hold the Sales and Use Tax Permit. Blank garments and items you resell can be bought tax-free with the Resale Certificate (Form 51A105), but shipping boxes and printing supplies you use up cannot. Once your sales into other states pass their thresholds, you may owe tax there too. Short answer: Starting An Ecommerce Business In 41501: start with the structure (an LLC for most owners), then the Sales and Use Tax Permit, a federal tax ID number (EIN) and a local business license. Buying and selling wholesale in KentuckyThe Kentucky version of the seller's permit is the Sales and Use Tax Permit. To buy for resale without paying sales tax, you give the supplier a Resale Certificate (Form 51A105). Suppliers generally accept a resale certificate only from a buyer registered for sales tax, so even a business that mostly buys and sells wholesale usually registers. Kentucky is a Streamlined Sales Tax member state, so buyers may also use the uniform Streamlined certificate. Your Pikeville filing checklist- LLC – protects personal assets if a customer or supplier dispute turns into a lawsuit
- Assumed Name (DBA) – needed when you trade under a name other than your legal name or the LLC's exact name
- Federal tax ID number (EIN) – needed for your 1 employee and payroll reports
- Sales and Use Tax Permit – the number wholesale suppliers want before they sell to you tax-free
- Resale Certificate (Form 51A105) – hand it to suppliers to buy inventory for resale without sales tax
- State employer ID – for state income tax withholding and unemployment insurance
- Pikeville business license – needed even for home-based businesses, which may also need a home occupation permit
Same permit, different names in other states- 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.
- Washington: the business license with a reseller permit. Washington's B&O tax has a wholesaling classification, and sellers must keep a reseller permit or other documentation for every wholesale customer.
- New York: the Certificate of Authority. A New York Certificate of Authority must be displayed at the business, and buyers list its number on the ST-120 resale certificate.
Industry code: NAICS 448140 (Family Clothing Stores), 458110 under the 2022 update Get your Sales and Use Tax Permit filed · Start your LLC, DBA and EIN · Business licenses |