Robert · Sheridan, MI
Robert asked: “I sell used.”
Hi Robert, selling used goods is retail, so Michigan expects a Sales Tax License. Used items bought from private sellers carry no wholesale paperwork, so keep receipts, and Form 3372 Sales and Use Tax Certificate of Exemption applies only to stock bought from businesses for resale. Some cities require a secondhand dealer permit, and it helps to tell us what you sell, since that shapes the permits you need.
Short answer: For a used goods business in Sheridan, Michigan, the essentials are the Sales Tax License, a federal tax ID number (EIN) and a local business license, plus an LLC or other structure.
Michigan calls its seller's permit the Sales Tax License. When you buy inventory to resell, the paperwork is a Form 3372 Sales and Use Tax Certificate of Exemption. Michigan says wholesalers selling only to other wholesalers or retailers are not making retail sales, so sales tax registration is not required. Michigan wholesalers buying tax-free should give suppliers a written statement that they are purchasing for resale at wholesale.
Industry code: NAICS 453310 (Used Merchandise Stores), 459510 under the 2022 update
Get your Sales Tax License filed · Start your LLC, DBA and EIN · Business licenses
Clothing Store · Pittsburgh, PA
The owner asked: “Clothing store. I will sell online until I get enough to get a storefront.”
Starting online and moving into a storefront later is a smart way to grow. Register for the Sales, Use and Hotel Occupancy Tax License now, since online sales to Pennsylvania buyers are taxable. Clothing suppliers will want the Form REV-1220 Pennsylvania Exemption Certificate plus your permit number. When you get the storefront, you will also need the city's business license.
Short answer: In Pittsburgh, Pennsylvania, businesses are required to obtain licensing before they start operating. For an online clothing store, that means the Sales, Use and Hotel Occupancy Tax License, a federal tax ID number (EIN) and a local business license, plus a structure and name registration.
Pennsylvania calls its seller's permit the Sales, Use and Hotel Occupancy Tax License. Suppliers selling to you tax-free will ask for a Form REV-1220 Pennsylvania Exemption Certificate. Not a sales tax license. A business selling only to resellers applies for a wholesaler certificate instead; it cannot hold both. Pennsylvania issues a separate wholesaler certificate to businesses that sell only for resale; any retail selling requires the sales tax license instead.
Industry code: NAICS 448150 (Clothing Accessories Stores), 458110 under the 2022 update
Get your Sales, Use and Hotel Occupancy Tax License filed · Start your LLC, DBA and EIN · Business licenses
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All Businesses Need a Sheridan Business License & a Trade Business Name ( Montcalm 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 MI 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 MI Business Tax ID but also need a Business License.
Instead of filing a Trade Business Name, You Can Incorporate in MI or form a(n) MI 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. Sales Nearly all businesses need a(n) , Sheridan business tax registration.
2. 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) Montcalm County DBA assumed business name certificate.
3. In MI 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 MIseller'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 MI Federal Tax ID Number and a(n) MI State Employer Tax Number.
5. Instead of filing a fictitious business name DBA Filing in Sheridan, Incorporate in MI or form a(n) LLC.