Los Angeles, CA
The owner told us: “I sew on machines. I make swimwear and sell to companies in a shop.”
A swimwear shop with twenty employees is a serious operation, so California garment manufacturing rules apply, including registration for manufacturers. Start with the right business structure. When you sell to companies, collect their resale certificates so you do not charge tax, and fabric that becomes part of the swimwear can be bought tax-free with your seller's permit. Add the state employer registration.
Short answer: Sewing Factory License: a swimwear manufacturing business in Los Angeles typically needs the seller's permit, a federal tax ID number (EIN) and a local business license, with an LLC and a DBA if you use a trade name.
California calls its seller's permit the seller's permit. Suppliers selling to you tax-free will ask for a resale certificate (Form CDTFA-230). California requires a seller's permit for sales of tangible goods, and the permit covers selling at wholesale or retail. A California resale certificate normally shows the buyer's seller's permit number; sellers accept it in good faith to skip tax.
Industry code: NAICS 315240 (Women's, Girls', and Infants' Cut and Sew Apparel Manufacturing)
Get your seller's permit 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
Get your sales tax license filed · Start your LLC, DBA and EIN · Business licenses
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All Businesses Need a Los Angeles Business License & a Trade Business Name ( Los Angeles 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 CA 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 CA Business Tax ID but also need a Business License.
Instead of filing a Trade Business Name, You Can Incorporate in CA or form a(n) CA 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) , Los Angeles 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) Los Angeles County DBA assumed business name certificate.
3. In CA 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 CAseller'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 CA Federal Tax ID Number and a(n) CA State Employer Tax Number.
5. Instead of filing a fictitious business name DBA Filing in Los Angeles, Incorporate in CA or form a(n) LLC.