Alexis · Lake Zurich, IL
Alexis wrote: “Selling and providing clothing to low-income families and single parents.”
Hi Alexis, selling clothing is a taxable retail activity, so you will need Illinois's Certificate of Registration (sales tax), with an Illinois resale number before your first sale. Giving clothing away is a different matter from selling it, so keep the two sides of the business clearly separated in your records. When you buy stock from a supplier to resell, you present Form CRT-61 Certificate of Resale, and you can skip the sales tax on those items.
Short answer: In Lake Zurich, Illinois, businesses are required to obtain licensing before they start operating. For a clothing business serving families in need, that means the Certificate of Registration (sales tax), with an Illinois resale number, a federal tax ID number (EIN) and a local business license, plus a structure and name registration.
In Illinois, the seller's permit goes by the name Certificate of Registration (sales tax), with an Illinois resale number. Suppliers selling to you tax-free will ask for a Form CRT-61 Certificate of Resale. Illinois registers a business as a reseller when all its sales of tangible goods are nontaxable, such as sales only for resale. Illinois' sales tax is legally the Retailers' Occupation Tax, a tax on the seller; resellers get a resale number to buy tax-free.
Industry code: NAICS 448140 (Family Clothing Stores), 458110 under the 2022 update
Get your Certificate of Registration (sales tax), with an Illinois resale number filed · Start your LLC, DBA and EIN · Business licenses
liebesonline · Salt Lake City, UT
A laptop pinging with new orders, packages stacked by the door and a roll of tape that is always almost empty.
Short answer: Get State Tax Id: Utah doesn't issue a document called a "wholesale license." The registration suppliers ask for is the Sales Tax License, backed by a Form TC-721 Exemption Certificate.
In Utah, the seller's permit goes by the name Sales Tax License. When you buy inventory to resell, the paperwork is a Form TC-721 Exemption 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. Utah is a Streamlined Sales Tax member state; its TC-721 form covers resale purchases. Buying products you plan to sell online wholesale means showing a resale certificate to your suppliers, so the tax is collected later from the shopper instead of from you.
Tip: Check where your customers live; online sellers sometimes owe sales tax in states they have never visited, a surprise worse than a lost parcel.
Industry code: NAICS 453998 (All Other Miscellaneous Store Retailers), 459999 under the 2022 update
Get your Sales Tax License filed · Start your LLC, DBA and EIN · Business licenses
BACK TO TOP
All Businesses Need a Lake Zurich Business License & a Trade Business Name ( 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 IL 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 Business Tax ID but also need a Business License.
Instead of filing a Trade Business Name, You Can Incorporate in IL or form a(n) LLC & You Will Not Need To File A DBA
Requirements below include websites as well as home-based or eBay Businesses.
1. Internet Business 99% of new businesses are required to get a(n), Lake Zurich business Id registration ( business tax registration or business permit).
2. Internet Business Starting businesses using a company name other than the legal owner's name need a (n) DBA Doing Business As Trade Firm Name Registration.
3. In a business tax ID registration (occupationall business license ) and a DBA Doing Business As Fictious Business Name are ncessary for most businesses but if your business sells any taxable items, you will need a sales tax ID number. ( A.K.A ILseller's permit, state id, wholesale, resale, reseller certificate).
4. If you are thinking of hiring help, you will need a tax ID called a state EIN and an IRS tax ID number called an EIN Employer ID Number. I.e., a Federal Tax ID Number and a(n) State Employer Tax Number.
5. Instead of filing a fictitious business name DBA Filing in Lake Zurich, Incorporate in or form a(n) LLC.