New Kent, VA
Ribbon spools stacked like candy, a hot glue gun cooling in its stand and half-finished wreaths hanging from every hook.
Short answer: In New Kent, Virginia, businesses are required to obtain licensing before they start operating. For a craft business, that means the Sales and Use Tax Certificate of Registration, a federal tax ID number (EIN) and a local business license, plus a structure and name registration.
Virginia calls its seller's permit the Sales and Use Tax Certificate of Registration. When you buy inventory to resell, the paperwork is a Form ST-10 Sales and Use Tax Certificate of Exemption. 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. In-state buyers using Form ST-10 generally need a Virginia registration; out-of-state buyers can cite their home-state number. Out-of-state buyers do not need a Virginia registration to give a valid Virginia resale certificate. Craft supplies that become part of items you sell can usually be bought with a resale certificate, while your tools and packaging materials are normally taxed.
Tip: Price your time as well as your materials; underpricing handmade work is how a hobby quietly eats a weekend.
Industry code: NAICS 451120 (Hobby, Toy, and Game Stores), 459120 under the 2022 update
Get your Sales and Use Tax Certificate of Registration filed · Start your LLC, DBA and EIN · Business licenses
Kim · Kim Craft Store · Washington, PA
Kim told us: “I sell crafts and clothing on eBay.”
Hi Kim, eBay sales of crafts and clothing are taxable goods sales, so your Pennsylvania Sales, Use and Hotel Occupancy Tax License matters even for a home business. With it, suppliers will take the Form REV-1220 Pennsylvania Exemption Certificate when you buy materials or inventory for resale. A kitchen-table seller can start as a sole proprietor with an EIN, and Kim Craft Store would need a DBA.
Short answer: Wholesale License15301: in Pennsylvania, what most people call a wholesale license is the Sales, Use and Hotel Occupancy Tax License. With it, and a Form REV-1220 Pennsylvania Exemption Certificate for your suppliers, an online crafts and clothing business can buy inventory for resale without paying sales tax up front.
The Pennsylvania version of the seller's permit is 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 453998 (All Other Miscellaneous Store Retailers), 459999 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 New Kent Business License & a Trade Business Name ( New Kent 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 VA 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 VA Business Tax ID but also need a Business License.
Instead of filing a Trade Business Name, You Can Incorporate in VA or form a(n) VA LLC & You Will Not Need To File A DBA
Requirements below include websites as well as home-based or eBay Businesses.
1. Crafts 99% of new businesses are required to get a(n), New Kent business Id registration ( business tax registration or business permit).
2. Crafts Starting businesses using a company name other than the legal owner's name need a (n) New Kent County DBA Doing Business As Trade Firm Name Registration.
3. In VA 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 VAseller'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 VA Federal Tax ID Number and a(n) VA State Employer Tax Number.
5. Instead of filing a fictitious business name DBA Filing in New Kent, Incorporate in VA or form a(n) LLC.