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? asked in Business & FinanceSmall Business · 8 years ago

If I am starting an online business, do I need a business license?

I have about $600 worth of dresses in my closet and I'm in the process of making a website to sell them with Paypal. I live in New Jersey. I don't think my business is going to be long-term, and I'm sure I'll make a lot less than $5000 total gross profit.

I'm in college and I have a part time job working 25-30 hours a week, so I paid my taxes last year for my job, and I assume I'll make enough with my online store to have to file next year, but I don't know what I'm going to need.

In the meantime, I have a spreadsheet of all of my inventory, and I record all of my expenses (shipping materials, labels, etc).

Any advice is appreciated, thank you.

5 Answers

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  • Anonymous
    8 years ago
    Favorite Answer

    No! You do not need any license.

  • ?
    Lv 7
    8 years ago

    Technically speaking, you might need a license of some kind from NJ. You also might need a sales tax license (it's free, but it would require filing forms and possibly collecting and forwarding sales tax to NJ).

    Realistically speaking, if it's short-term, you might be able to avoid all of the hassles. Also, you might want to work out an arrangement with a friend or family member that has a retail store whereby you sell your items under that person's store.

  • ?
    Lv 4
    8 years ago

    No No No, for $600 worth of goods, one-time only, just sell them on ebay and get it over with. Or take it to a consignment shop. No licenses needed, this is like a yard sale.

    If you are actually buying more goods and continually selling, then you may need to file a DBA and file for small business forms, such as filing as a sole prop.

  • ?
    Lv 7
    8 years ago

    Are these hand-made dresses you designed yourself? You can sell them on www.etsy.com which is a website for people who hand-make things. No license is needed there. You set up your own shop within their website.

    Good luck to you!

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  • 8 years ago

    if you sell more than 10 of those dresses, consider yourself lucky

    do not file anything with anyone!

    that is not a biz.

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