license

[code321]

What is the name of your state? CO

So i was wondering if a company/business/seller license (whatever license) is needed for a person to sell items online, or in person, but mainly online.

Example of an item would be shirts. Say a web company who mainly runs on making money off advertisements and decides to start selling shirts, will a license be needed?

Thanks

 

[quincy]

If you are operating your web-based business out of Colorado, you will need a sales tax license, and you must collect sales tax on all items sold to customers residing in Colorado.

Other licenses would depend on what you sell, rather than on how you sell it.

Almost all businesses operating in Colorado will need a business license, all retailers and wholesalers a seller's permit, all employers a federal and state employer tax ID number, and a trade name certificate will be necessary if operating under a "doing business as" (dba) name.

Professionals will, in addition, need their professional licenses, auto dealers an occupational license, etc.

I found a few websites that may help you out if you are considering a web business:

www.colorado.gov/colorado/permits.html - which will tell you what permits are required in Colorado

www.coloradostylepublishing.com/smbus.html has a LOT of information for starting up a small business

www.scoredenver.org/small_business_resource_guide.html offers small business resources

Hope this helps.

 

[code321]

thanks for your help

 

[code321]

hey again,

You mentioned what mattered was what you were selling. The thing I want to sell is clothing and coffee mug, caps, stickers etc. (merchandise) The selling part is not the main thing that my website does, I just wanted to sell these things as a way of advertising you know? Is a license still needed then?

Thanks for the links by the way, I'm about to check them out.

Thanks,

 

[quincy]

Hi, Code.

What I meant by "what you sell" is that if, say, you are selling cars, you will need an occupational license - be licensed to sell cars - whether you are selling the cars from an auto lot in Colorado or online. Or, if you are a doctor, you will need a medical license to practice. You, of course, won't need a license like that if you are selling tee-shirts and mugs and stuff.

You WILL, however, need a sales tax license, as you are required in Colorado to collect sales tax on all items sold from your website to Colorado residents. And I believe you will need a business license and a seller's permit.

I know one of the sites I gave you listed what you will need for an online business operating out of Colorado. And hopefully one of the sites will tell you what you need if your merchandise is primarily for advertising purposes (ie. Starbucks tee-shirts to advertise their coffee shops). I am not sure if that matters much.

Good luck.

 

[code321]

Thanks again, I guess I have allot of reading to do lol. I know a little about the tax but the seller license and stuff ill have to read about that, if I need it and how i get it.

update: I was thinking and I'm guess I cant just add that amount i make from selling into my income tax, on the 15th? Like so if that is allowed it would mean i would have to raise the price of the item a little, if it is even allowed.

Thanks again