eBay Sellers Get Your Business License Cheap

Get Your Business License Cheap!

You do not need a business license to sell on eBay. However, as you may have already learned from my books "eBay Business at Your Fingertips", “eBay Rescue Problem Solver” and “eBay Rescue Profit maker,” you cannot be a serious seller on eBay until you have a business license.

There are many good reasons for an eBay seller to become a bona fide business and obtain a business license. The primary reason is so you can deal directly with distributors and wholesalers. The first question they will ask when you apply to be one of their dealers is, “What is your EIN tax number?” If you do not have a tax number, they will not sell to you and your new eBay venture is stalled. You obtain your EIN tax number with a business license. So let’s get you legal and licensed as easily and inexpensively as possible.

Contrary to popular belief, a business license is fairly easy and inexpensive to obtain if you know where, what and how to file all the required forms. Best of all, you do not need to pay expensive attorney fees.

Most small businesses are Sole Proprietorships, Partnerships or the increasingly popular Limited Liability Corporations (LLC). The key to making the decision as to which type of business is right for you is based mostly on minimizing your taxes. Note that Sole Proprietorships are usually taxed about 15% higher than the other types of businesses. An LLC business provides you with security (separating your business liabilities from your personal assets), minimizes paperwork compared with an S or C Corporation, and the profits transfer directly to your personal income for much easier tax preparation.

Almost all eBay sellers that I know, are now choosing to become LLCs. I also decided to make my eBay business an LLC as well.

If you have an attorney, you may want to talk to him/her before making the decision. However, if you use an attorney to file your business license, it can easily cost over $1,000 in attorney fees alone. I have discovered a much cheaper way for anyone to easily obtain a business license in any of the 50 states!

Here is how I recommend that you can safely, quickly, easily and cheaply obtain your business license:

1) Talk to your CPA (or other certified tax advisor) and inform them that you want to obtain a small business license to sell items on eBay part time. You anticipate that it may grow into a full time business. Ask them what form of business they recommend that you apply for, based mainly on paying the least amount of taxes while still providing you with sufficient protection.

2) As you discuss your options, you may have some further legal questions. Write them down. But instead of contacting an expensive attorney, talk to one for FREE at SCORE!

3) SCORE is a great source of FREE legal information for small businesses. It is staffed with retired attorneys dedicated to helping small business owners get started. They will answer all of your questions free of charge and in full confidentiality. You can find them at www.score.org. Enter your zip code to find the phone number of a chapter near you. Then call them to set up an appointment or simply ask them the legal questions you have over the phone.

4) Once your legal questions are answered, you are ready to file the paperwork with your state. You can now save a lot of money on costly attorney fees by using an “Incorporation Service Provider” to file your paperwork instead. The two that I have used and recommend are This One and This One. Click on both links and compare prices and services to find the one that best meets your needs. Need more information about Incorporation Service Providers? See below...

What is an Incorporation Service Provider (ISP)?

When business owners personally prepare and file their formation documents with their state, they often spend more time than originally anticipated or desired in the process of researching state requirements and fees, and obtaining, completing and submitting the appropriate documentation.

If you use an incorporation service provider instead, you simply answer 10-15 questions and the Incorporation Service Provider then files all the required paperwork to your state on your behalf, acting as your agent. It is all very smooth, simple and cheap!

The ISP that I recommend are the Internet leader in providing incorporation and related services to small businesses. They are dedicated to help entrepreneurs and small business owners understand the incorporation process and make it much easier and affordable.

They charge a very reasonable service fee plus the state filing fees. Also, you can easily obtain additional services such as the tax identification number (or EIN) from their IRS and LLC kits. No matter what service you choose, be sure and select the EIN (tax number) service since the whole point of getting legal is to obtain an EIN tax number.

Depending on the services you request (Basic, Standard or Complete), a typical service fee would be up to a savings of 85% of the cost of using an attorney!.

In Summary: 1) Speak with your own CPA first, 2) call SCORE for free legal advice, and then 3) use an Incorporation Service Provider to file your paperwork. Again, the two I recommend are This One and This One.

Using this method, you can quickly obtain your business license and save several hundred or even thousands of dollars in attorney fees! This method will turn what could have been a tedious, confusing and costly process for you into relief knowing that everything has been handled by professionals.

Do You Already Have a Business License?

If you already have a business license, you don’t need another one for your eBay business. You can simply file a “Doing Business As” (DBA) form with your state. Filing a DBA makes your new eBay business legal and simply places your new business under the umbrella of your established business. This is the much simpler and less costly route. The fee for filing a DBA is usually around $100 plus any state fees. You can easily file a DBA with the Incorporation Service Providers I have recommend above.