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    5 Replies Latest reply on May 4, 2010 7:17 AM by amspcs

    Business License/Tax Id for internet business?

    Tkanderson Newbie
      I have started to work on developing an online fashion boutique, and I need to know if you need any type of license or a tax id number. I know if you have in a store you do, is it the same for online? I am located in md.
        • Re: Business License/Tax Id for internet business?
          bpfinance Adventurer
          Well, to tell you whether you need a business license, I would just need to know what locality you are planning to operate your business from. If its a large city, I would need to know the city, if the city is small, then business licenses would likely be done by the county.

          Whether or not you need a tax id is dependent on how you want to set up the business. If you want to set it up as a sole proprietorship (the simplest form) then you do not need a tax ID, you could simply use your social security number. However, I would still recommend signing up for a tax ID just for the purposes of keeping your personal finances separate from those of your business. It only takes about 2 minutes to obtain a tax ID and you can do it all online at the IRS website. Remember that you can only sign up for one tax ID as a sole-proprietor. So, if you have signed up for one before as a sole-proprietor, you would need to use that tax ID for this business as well (if you decide not to use your SSN).

          If you set the business up as another entity type (LLC, Corporation, etc...) then you would need to obtain a tax ID.

          Additionally, you may need to file a DBA/FBN in order to operate depending on what you want the name of your business to be.

          If you need any assistance with the business registration, determining entity type, obtaining tax IDs, or anything else that you need assistance with in starting up your business, I would be glad to help.

          Jeremy Barfield
          Chief Forum Response Correspondent

          • Re: Business License/Tax Id for internet business?
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            • Re: Business License/Tax Id for internet business?
              For online, you don't need anything special, as far as I'm aware, until the state and Federal tax laws change (as they are about to in Colorado). You are supposed to collect sales tax, but few do.
              • Re: Business License/Tax Id for internet business?
                NatOnline Tracker
                You will need a tax id number, probably a city licence, a dba (doing business as) and state licence. In fact it depends on your business structure.

                For example here in Nevada, my corporation is a LLC with dba of Natural Elements. I have Tax ID, State Licence, Citiy Licence, Dba registred in federal court.

                If you deal with wholesalers they will ask you your tax ID. If you really want more information, I suggest you to consult a business attorney, sometime they offer a free consultation or other organizations.
                • Re: Business License/Tax Id for internet business?
                  amspcs Ranger
                  The answer to your question depends on a number of factors, including: primarily your locality and your business entity type (corporation, LLC, other) . For this reason, you should consult an accountant and/or business attorney in your area.