Belinda · Super Co · Vale, NC
Belinda shared: “I am a seamstress and I sell out of my home on eBay and Craigslist.”
Hi Belinda, selling what you sew on eBay or Craigslist counts as retail, so North Carolina expects the Certificate of Registration (sales and use tax) for taxable items. Fabric and notions that become part of your finished pieces can be bought tax-free with a resale certificate (Form E-595E Streamlined Sales and Use Tax Certificate of Exemption), though your machines and tools are not. Alterations for customers are handled differently from sales of finished goods.
Short answer: For a home sewing business in Vale, 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.
North Carolina calls its seller's permit 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.
Industry code: NAICS 315990 (Apparel Accessories and Other Apparel Manufacturing)
Get your Certificate of Registration (sales and use tax) filed · Start your LLC, DBA and EIN · Business licenses
Auburn, AL
The owner shared: “I am a sewer, quilter and craft maker. I have been asked to make items for others.”
When people ask you to make items, you are in business, and in Auburn that means Alabama's sales tax license for items sold. Buying fabric wholesale tax-free needs the resale certificate showing your Alabama sales tax account number, and only fabric that becomes part of items you sell qualifies. Needles and thread you use up are taxed. Ask us about an LLC and EIN to keep custom work separate from you personally.
Short answer: For a sewing and quilting business in Auburn, Alabama, the essentials are the sales tax license, a federal tax ID number (EIN) and a local business license, plus an LLC or other structure.
The Alabama version of the seller's permit is the sales tax license. When you buy inventory to resell, the paperwork is an Alabama resale certificate. Wholesalers making no retail sales may get a state sales tax certificate of exemption (Form STE-1) instead of a sales tax license. Many Alabama cities and counties levy their own sales taxes, some administered locally, so local registration can be needed too.
Industry code: NAICS 459130 (Sewing, Needlework, and Piece Goods Retailers), 451130 under the 2017 codes
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All Businesses Need a Vale Business License & a Trade Business Name ( Lincoln 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 NC 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 NC Business Tax ID but also need a Business License.
Instead of filing a Trade Business Name, You Can Incorporate in NC or form a(n) NC 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. Sewing Nearly all businesses need a(n) , Vale business tax registration.
2. Sewing 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) Lincoln County DBA assumed business name certificate.
3. In NC 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 NCseller'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 NC Federal Tax ID Number and a(n) NC State Employer Tax Number.
5. Instead of filing a fictitious business name DBA Filing in Vale, Incorporate in NC or form a(n) LLC.