You might be asking if you need a business license to sell on eBay in California as an online merchant. Yes, a business license is required to sell on eBay in California legally. This is so that the laws and license requirements are the same for both online and offline sales in California, which are seen as being equivalent.
You must register your business with the state of California and receive a Taxpayer Identification Number (TIN) from the Internal Revenue Service (IRS) in order to apply for a business license there. All businesses doing business in the US must have this number, which is used to identify your company for tax purposes.
Also known as a taxpayer identification number, TIN. It is a special nine-digit number that the IRS issues to distinguish between businesses and people for tax purposes. If you are a solo proprietor, your TIN can be your Social Security Number (SSN), but if you have employees or do business as a corporation or partnership, you must get a separate Employer Identification Number (EIN) from the IRS.
The rate of sales tax in the state of Utah is 4.85% on a national level. However, each county may have a different sales tax rate. Rich County in Utah has the highest sales tax rate at 6.85%, while Tooele County has the lowest at 1.75%. To make sure you are collecting and remitting the correct amount of sales tax, it is crucial to check the sales tax rates in the county where your business is located.
The Utah state sales tax stays at 4.85% as of 2021. However, the sales tax rate may be lower for some products, including food and prescription medications. Furthermore, it’s crucial to check with your local government to be sure you’re collecting and remitting the right amount of sales tax because some cities and municipalities in Utah might have their own local sales tax rates.
In conclusion, it is crucial to have a business license and TIN if you are selling on eBay in California in order to make sure that you are doing so lawfully and in accordance with state laws. In order to be sure you are collecting and remitting the appropriate amount of sales tax, it is also crucial to be aware of the rates for both your county and state.