What do I need?

[schiesssportscardz]

I have a big collection of used sports cards I am trying to sell, so I will be placing them on ecrater. I am not buying wholesale and stocking up, I am simply just selling these cards. I would not classify it as a "business" because I do not intend to make boatloads of money from it. I would just like to get rid of the cards and I like the way ecrater works. My question is....do I need all the licensing?

I will not be selling new goods, or purchasing my products wholesale to sell (i was told i need a sellers permit, but I am NOT buying wholesale).

I am simply just selling my collection. People do this on craigslist all the time without needing permits. I just don't wanna get fined and all that junk. Anybody else in my position? What did you do?

Any help is greatly appreciated because I do not want to spend money on licensing if it is not necessary for what I am doing. Thanks!!

[hocadobi]

This site does not require license or permits to sell.

[schiesssportscardz]

Yes I know ecrater doesn't but will i get in trouble on the state or federal level? I feel like what I am doing is nothing different than selling on craigslist where you do not need any licensing either

[PegsBUTTONS]

[theartsandlettersofmaggiethecat]

You don't need licenses or permits.

If the amount you make changes your tax bracket you will have to add the income on your income tax statement. Selling 25 cent cards probably won't effect it but selling rare cards could.

[schiesssportscardz]

Thanks for the heads up Pegs Buttons! Thanks to everyone else also for your help. I've been wanting to make my store active for a while now but I did not want to get fined hundeds or thousands of dollars for selling items for quarters at a time haha.


Any advertising or selling tips would be appreciated too

[PegsBUTTONS]

schiesssportscardz..craigs list is entirely different than you opening a store here..you are a BUSINESS..we all are!

ecrater provides the space for us but you have to do your own promoting
look in your Administrative tools..left side..PROMOTE STORE also in the forum FAQ's & Solutions..there are many great posts on promoting use the SEARCH feature for more. Create a blog, twitter, facebook..join groups that have your same interests
also consider adding google checkout as a payment option..(they charge the same fees as paypal)

[elpereles]

The only place I know that is require to have a license to receive payment if you use Moneybookers. But it isn't available to use in eCrater.

[MoonwishesStore]

The best place for advice of your sort is your state and the federal guidelines as to what consistutes a business. Does your state charge sales tax on cards? Then if you sell to someone in your state, then you will need a tax permit to collect them and remit them also. This you have to do and can get in trouble if you don't. The US govenment gives you the option of looking at it as either a hobby (no business expenses can be charged against the income you make) and if you make more than you paid for the cards, you may owe taxes. If your intent is to make a profit, you will need to file a schedule C for business expenses.

The important thing is the tax permit and keeping good records of sales and expenses at this time. This is NOT a time in history to try to sell under the radar. Just today, I got a request from Paypal for our tax ID number as any seller going over certain amounts WILL have a form filed by payment gateways showing how much income came in to them during the year.

You have a store here, it would pay to treat it as a business as you never know that you might get hooked and really take it up to a business level. It would save grief in the end. Over the years I've heard of way too many people that think on line sales are not taxable income or that they don't have to declare it, etc. Well I don't look good in orage or striped pajamas, so I don't take chances.

[schiesssportscardz]

Thanks! My issue is that i've contacted NY state's small business administration....county clerks..etc and nobody has given me a clear indication on what I need. It got very frustrating.

I fully intend to claim any profits made on my taxes, so what you are saying is that first and foremost I need to obtain a Tax ID number so I can charge sales tax?

[MoonwishesStore]

[maggiethehousecat]

States have different rules regarding selling of used items. Some items are taxable and others are not. Check it out.

[tigercreekgifts]

As long as your cards are used and were not purchased wholesale in a large lot with the intent to resell them for a profit, you do not need a tax ID or permit as this not considered running a business, they consider it like you just had a yard sale online to get rid of some unwanted used items. If you do start buying and reselling new cards for profit your state may require you to have a tax ID, but unless you make over a certain amount of profit you usually don't have to pay any taxes on it. The limit amount varies per state. My state says I only have to collect taxes on new wholesale items or used large items (cars, farm equipment, etc.) and only if my projected income is to be over $800.00 a month. Only then, does my state to consider my profit to be an actual substantial monthly income. Anything under $800 a month and it's just considered selling to get rid of your household "junk".

You still need to check your state chamber of commerce website as they have links to the websites that can give you information about businesses, reselling, tax ids, etc. as each state has their own set of general selling guidelines. It varies greatly per state so, check your chamber of commerce website (it should be your state's name .org or .net, OR your state's name chamber of commerce .org) but if not, it will most likely be available in Google search. I know in some states they go by annual projected profit instead of monthly.