Getting a business license is one of the processes that must be performed in Missouri before starting a business. But not every company needs a license. The type of business and the location determine whether a license is necessary. The majority of businesses in Missouri are required to register with the Secretary of State’s office, submit tax returns, and obtain a sales tax license if they sell tangible products.
Local governments may apply additional sales taxes ranging from 0.125% to 5.454% in addition to the state’s 4.225% sales tax. It is crucial to confirm the sales tax rate in your area with your local government. Sales tax must be collected and sent to Missouri by companies that sell tangible products. Penalties and fines may apply if this is not done.
A tax ID number can be required if you are selling on Etsy. For some types of organizations, including partnerships and corporations, and for enterprises with workers, a tax ID number, commonly known as an Employer Identification Number (EIN), is necessary. If you are a sole proprietorship, you can, however, omit the EIN and utilize your Social Security number.
On the other hand, you might not need a business license if you are selling on eBay. Although a business license is not required to sell on eBay, it is still advisable to check with your local government to see whether one is needed. It’s also crucial to remember that if you sell actual things on eBay as a business, you must file taxes and obtain a sales tax license.
The IRS defines a pastime as an activity that is not undertaken for profit. Determining whether your Etsy shop is a hobby or a business might be a little challenging. You do not require a company license or tax filings if you are selling on Etsy as a hobby. However, if you are using Etsy as a business, you must obtain a business license, report your revenue on your taxes, and, if you are selling actual things, collect and remit sales tax.
In conclusion, the kind of business you run and where it is located determine whether you need a business license in Missouri. If you sell tangible things, it’s crucial to register with the Secretary of State’s office and receive a sales tax license. Additionally, you could need a tax ID number if you sell on Etsy, although an eBay company license might not be necessary. To assess your tax requirements, you must decide if your Etsy shop is a hobby or a company.
The filing fee for the Articles of Organization is $50 in Missouri, which is the cost of forming an LLC. Depending on the kind of business you’re beginning and the area, there can also be additional costs to meet licensing, permitting, and other needs. It is advised to speak with a lawyer or accountant to fully comprehend the fees and conditions for forming an LLC in Missouri.
There are several steps involved in starting your own business, including coming up with a business idea, doing market research, writing a business plan, deciding on a business structure, registering your company with the government, securing any necessary licenses and permits, obtaining financing, and launching your enterprise. To enhance the chances of success and to ensure that all legal requirements are completed, it is advised to seek the advice of a business advisor or attorney.