A large global audience can be reached by using the well-known online marketplace Etsy to sell handmade or vintage goods. You might be unsure if you require a business license if you intend to sell on Etsy in New York. This question’s answer is complex and depends on a number of variables.
In general, you might not require a license if you are using Etsy to sell products as a hobby rather than a business. However, you will want a business license if you plan to sell goods on Etsy as a business. Even enterprises that operate out of a person’s home in New York must seek a license.
To sell on Etsy, you might additionally require a seller’s permit in addition to a company license. You need a seller’s permit in order to be able to charge sales tax to your clients. A seller’s permit from the New York State Department of Taxation and Finance is required if you are selling taxable items.
You could also require extra documentation for your internet business in addition to a business license and seller’s licence. For instance, you might be required to register your company with the Internal Revenue Service (IRS) and the New York State Department of State, respectively.
Consider the tax repercussions if you intend to establish a Limited Liability Company (LLC) in New York. A common business structure that provides owners with limited liability protection is an LLC. LLCs are regarded as pass-through entities for taxation in New York. As a result, the LLC’s earnings and losses are disclosed on the owners’ individual tax returns.
Through the IRS website, you can submit an online application to get an EIN number in New York. Basic information regarding your company, like its legal name, address, and number of employees, must be provided. You can use your EIN once you’ve applied for it to open a bank account, recruit staff, and file your taxes.
In conclusion, depending on the type of your business, you could require a business license, seller’s permit, and other documentation if you intend to sell on Etsy in New York. To prevent any fines or penalties, it’s critical to conduct thorough research and adhere to all legal requirements.
A DBA (Doing Business As) is a way to conduct business using a name other than your given name, your registered LLC name, or another name. It does not offer liability protection and is not a distinct legal entity. An LLC, on the other hand, is a distinct legal entity that can carry on business in its own name and offers liability protection to its owners (referred to as members). It is a popular option for small business owners since it provides freedom in management and taxation.
The length of time it takes to incorporate an LLC in New York can vary, but generally speaking, it takes between one and two weeks to get the LLC’s authorized articles of incorporation from the state. However, if there are application issues or a significant volume of applications in the state, the processing time might take longer. To prevent process delays, it’s crucial to make sure that all required paperwork is correctly filled out and delivered on time.