Blind Drop Shipping

[ansarac]

What is the name of your state (only U.S. law)?

California

The terms of this business license, for a home resale office, say that no merchandise is to be stored at this physical location, I do not personally process money, no customers are allowed on the premises, there is no manufacturing, and no signage, whatsoever, is to be displayed.

There is no need for an independent website.

Must I be formally certified, in order to be a personal shopper, or to collect a finders fee, or how might this arrangement be worded, technically, to avoid liability.

 

[Zigner]

California

The terms of this business license, for a home resale office, say that no merchandise is to be stored at this physical location, I do not personally process money, no customers are allowed on the premises, there is no manufacturing, and no signage, whatsoever, is to be displayed.

There is no need for an independent website.

Must I be formally certified, in order to be a personal shopper, or to collect a finders fee, or how might this arrangement be worded, technically, to avoid liability.

Certified by who? What arrangement? Avoid liability for what?

 

[ansarac]

(As I am researching this issue, I see that a nexus is only created once a substantial physical presence is established.)

Certified by who?

The city or state.

What arrangement?

Blind drop shipping

Avoid liability for what?

The cost of licensing and sales tax, if I need not be a business.

 

[FlyingRon]

Let me guess what you're talking about. You're going to run a site where you talk to someone and get them to place an order which is handled by some other company that drop ships the item (possibly making it appear to come from you, but that's immaterial).

It sounds very much that you have a California sales tax nexus, and you will need to optain a seller's permit with the BOE and collect and remit sales taxes on all tangible goods sales (or services that result in the creation of such goods) to residents of the state.