Kairronn · Cygnature Couture · Wilmington, DE
Kairronn wrote: “Sell handmade clothing online.”
Hi Kairronn, Delaware has no statewide sales tax, so there's no seller's permit, but you do need the business license that covers Delaware's gross receipts tax. Delaware needs no resale certificate, though suppliers elsewhere may still ask for documentation. Selling online into other states can bring tax duties there once you pass their thresholds. Cygnature Couture needs a DBA unless your LLC is named exactly that.
Short answer: For a handmade clothing business in Wilmington, Delaware, the essentials are a federal tax ID number (EIN) and a local business license, plus an LLC or other structure.
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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Rene · Florence, NJ
Rene told us: “I want to buy leggings, shirts and more and sell them online to the public.”
Hi Rene, selling clothing online from New Jersey starts with the Certificate of Authority, the state's sales tax registration. With it, wholesalers will accept the Form ST-3 Resale Certificate and sell you leggings and shirts tax-free. Clothing is often exempt from sales tax in New Jersey, but the registration is still how you buy tax-free and report sales. Selling nationally can create tax duties elsewhere past thresholds.
Short answer: For an online clothing shop in Florence, New Jersey, the essentials are the Certificate of Authority, a federal tax ID number (EIN) and a local business license, plus an LLC or other structure.
The New Jersey version of the seller's permit is the Certificate of Authority. To buy for resale without paying sales tax, you give the supplier a Form ST-3 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. New Jersey's ST-3 resale certificate requires the buyer's New Jersey registration number for in-state buyers.
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All Businesses Need a Wilmington Business License & a Trade Business Name ( New Castle 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. Online Clothing Sales Nearly all businesses need a(n) , Wilmington business tax registration.
2. Online Clothing Sales 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) New Castle 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. You will need a federal and a state EIN if you will hire employees. 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 Wilmington, Incorporate in DE or form a(n) LLC.