I want to start a resell business selling jewlery and handbags i am clueless on the process to do this legally

Question

i want to sell at festivals and on ebay please help i live in Georgia if that helps do i need a resell liscense and do i have to pay taxes i am going to buy from wholesellers

Thanks!!

Answer 1

yes you need a state tax id/reseller permit/retail permit/etc...(its name varies from state to state but its all the same thing).

no legit wholesaler is going to sell to you without a state tax id.
http://www.etax.dor.ga.gov/salestax/st3forms/st3_indx.aspx

you might need a federal tax id too you could use your social security but most people are a little iffy about doing it since you'll have to give it to the wholesalers plus you can get it for free
http://www.irs.ustreas.gov/businesses/small/article/0,,id=98350,00.html

and you'll definitely need to pay taxes. whenever you make a sale instate you are responsible for reporting and paying sales tax to your state. you add this charge to the price after you make a sell. you know like when you go to the grocery store and an item cost $1 and then they charge you like $.08 tax you'll do the same thing. however if you sell on ebay and the buyer lives in another state you dont charge them tax.

the federal goverment will want its money too and depending on what type of business you are will effect how tax is figured out. if you are a sole proprietorship then your business are you are the same entity so the profit your business makes is lumped in with your personal income and then you are taxed based on the combined income tax

Answer 2

Go to http://www.score.org/index.html and in the upper left hand corner, enter your zip code. On the next screen, you will get information on the nearest SCORE chapter. Call them and arrange for a free meeting with a SCORE counselor to discuss starting your jewelery and handbag business.

SCORE is a nonprofit association dedicated to entrepreneur education and the formation, growth and success of small business nationwide. SCORE is a resource partner with the U.S. Small Business Administration (SBA).

SCORE has 389 chapters in locations throughout the United States and its territories, with 10,500 volunteers nationwide. Both working and retired executives and business owners donate time and expertise as business counselors.