Brianna · Clothing And Other · Smyrna, DE
Brianna told us: “Selling handmade items and items purchased wholesale for resale.”
Hi Brianna, Delaware has no statewide sales tax, which answers the first question: no resale license is needed here to buy and sell online. What you do need is the state business license, which includes the gross receipts tax. Suppliers outside Delaware may still ask for documentation, so keep your business formation papers handy. Handmade items and resold goods are treated alike, but record them separately for your own books.
Short answer: In Smyrna, Delaware, businesses are required to obtain licensing before they start operating. For a handmade and resale clothing shop, that means a federal tax ID number (EIN) and a local business license, plus a structure and name registration.
No sales tax, but Delaware generally requires a business license, and wholesalers report gross receipts tax on their sales. No statewide sales tax; instead Delaware imposes a gross receipts tax on sellers, with wholesalers classified separately from retailers.
Industry code: NAICS 448140 (Family Clothing Stores), 458110 under the 2022 update
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Tom · Tom's Clothing · Rural Hall, NC
Hi Tom, an online clothing store in North Carolina starts with the Certificate of Registration (sales and use tax). Suppliers will accept the Form E-595E Streamlined Sales and Use Tax Certificate of Exemption for clothing you buy to resell, but not for shipping supplies. Once your sales to other states pass their thresholds, you may owe tax there too. Tom's Clothing needs a DBA if you stay a sole proprietor.
Short answer: For an online clothing store in Rural Hall, North Carolina, the essentials are the Certificate of Registration (sales and use tax), a federal tax ID number (EIN) and a local business license, plus an LLC or other structure.
The North Carolina version of the seller's permit is the Certificate of Registration (sales and use tax). Suppliers selling to you tax-free will ask for a Form E-595E Streamlined Sales and Use Tax Certificate of Exemption. A wholesale merchant must register; wholesale-only businesses with no taxable sales or purchases can choose a wholesale-only option and skip filing returns. North Carolina lets registered wholesale-only merchants opt out of filing sales and use tax returns.
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All Businesses Need a Smyrna Business License & a Trade Business Name ( Kent 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 DE 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 DE Business Tax ID but also need a Business License.
Instead of filing a Trade Business Name, You Can Incorporate in DE or form a(n) DE 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. Clothing Nearly all businesses need a(n) , Smyrna business tax registration.
2. Clothing 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) Kent County DBA assumed business name certificate.
3. In DE 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 DEseller's permit, state id, wholesale, resale, reseller certificate).
4. Keep in mind that employers will need to obtain a federal EIN and a State EIN tax identificattion number as well. I.e., a DE Federal Tax ID Number and a(n) DE State Employer Tax Number.
5. Instead of filing a fictitious business name DBA Filing in Smyrna, Incorporate in DE or form a(n) LLC.