Austin · Austin's Outdoor Supply · Germantown, MD
Austin told us: “I want to start an online eCommerce business where I resell outdoor type things. I will not have an inventory; the stuff I resell will be dropshipped by manufacturers.”
Hi Austin, Dropshipping still makes you the seller, so Maryland's Sales and Use Tax License is needed for Austin's Outdoor Supply, and you will give each manufacturer your resale certificate so they ship without charging you tax. Dropshipping across states can also create tax obligations elsewhere once you pass their thresholds, and some suppliers collect for the destination state. Using an LLC is a good way to start an online store.
Short answer: Business Filling: for a dropship outdoor gear store in Germantown, Maryland, the core set is the Sales and Use Tax License, a federal tax ID number (EIN) and a local business license, plus a business structure and name registration.
Maryland calls its seller's permit the Sales and Use Tax License. To buy for resale without paying sales tax, you give the supplier a Maryland resale certificate. 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. Maryland has no local sales taxes, so one state license covers the whole state.
Industry code: NAICS 459110 (Sporting Goods Retailers), 451110 under the 2017 version
Get your Sales and Use Tax License filed · Start your LLC, DBA and EIN · Business licenses
Joseph · Frazier Direct · Las Vegas, NV
Joseph wrote: “At Frazier Direct we are an online retail business offering a wide variety of products. We ship to all 50 states from our location in sunny Las Vegas, NV.”
Hi Joseph, Nevada's seller's permit is the one that matters for an online retailer shipping from Las Vegas. Suppliers will take Nevada's resale certificate, which requires the buyer to hold a seller's permit, for tax-free inventory. Shipping to all 50 states means other states' sales thresholds may apply to you, so watch your numbers by state. Nevada has no state income tax on wages, so employer registration there is for unemployment insurance.
Short answer: For an online retail business in Las Vegas, Nevada, the essentials are the seller's permit, a federal tax ID number (EIN) and a local business license, plus an LLC or other structure.
Nevada calls its seller's permit the seller's permit. Suppliers selling to you tax-free will ask for a Nevada resale certificate (buyer must hold a seller's permit). Nevada requires businesses selling tangible goods in the state to register, and a seller's permit is a prerequisite for issuing resale certificates. Nevada also has a Commerce Tax on businesses with large Nevada gross revenue, which can reach wholesalers.
Industry code: NAICS 459999 (All Other Miscellaneous Retailers), 454110 under the 2017 codes
Get your seller's permit filed · Start your LLC, DBA and EIN · Business licenses
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All Businesses Need a Germantown Business License & a Trade Business Name ( Montgomery County Trade Business Name required if using a trade name).
Retailers / Wholesalers, Need a Reseller Tax ID, & a Business License.
Employers Need a Federal Tax Id Number (EIN), a MD State Tax Id ( State EIN), & a Business License.
Corporations, & LLC Need a Federal Tax Id Number (EIN)& a Business License.
Partnerships Need a Federal Tax Id Number (EIN) & a Trade Business Name, but also need a Business License.
Sole Proprietors May Use a Federal Tax Id Number as a MD Business Tax ID but also need a Business License.
Instead of filing a Trade Business Name, You Can Incorporate in MD or form a(n) MD LLC & You Will Not Need To File A DBA
The licenses below are required for all businesses including internet as well as home and businesses like Etsy etc.
1. Ecommerce Nearly all businesses need a(n) , Germantown business tax registration.
2. Ecommerce All Businesses that use a business name to trade that is other than the surname and first name of a sole proprietor or a fictitious business name other than the LLC or Corporation legal name need a(n) Montgomery County DBA assumed business name certificate.
3. In MD you may also need a tax id called a resale tax ID or seller's license if you are selling touchable items. ( A.K.A MDseller's permit, state id, wholesale, resale, reseller certificate).
4. You will need a federal and a state EIN if you will hire employees. I.e., a MD Federal Tax ID Number and a(n) MD State Employer Tax Number.
5. Instead of filing a fictitious business name DBA Filing in Germantown, Incorporate in MD or form a(n) LLC.