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Do I need a business license to sell on eBay?

DO you have to have a business license to sell on Ebay and how would I claim taxes at the end of the year.?

  • At the end of this year I will probably have a pretty substantial income from Ebay. I do not have a business license. I just list and sell. Do I need one? Can someone tell me what to do so I can be prepared? What kind of taxes would I have to pay on the income since nothing is being removed during the year? Is there a way to remove the taxes during the year? I'm an idiot when it comes to taxes, but I'm starting to make some good money on Ebay and the IRS scares the hell out of me..

  • Answer:

    You can just start selling. About taxes: You are self employed or independent contractor. You must file your tax return if your self employed income is $400 or more. You will report your income and business related expenses on schedule C or C-EZ (Form 1040). Then you put net income (or loss) on line 12 of Form 1040. This income is subject to SE tax at 15.3% (this is shown on line 57 of Form 1040).

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<The IRS scares the hell out of me> Welcome to my Anti-IRS Club!! We file taxes so you don't have toooooooooooooooooooo For ebay businesses, you need to know a bunch of things: 1. How much you took in (in total!) 2. How much the stuff cost you (the stuff that sold) 3. How much the stuff cost you that you didn't sell yet 4. How much all that ebay advertising cost 5. How about all that shipping? Now we can almost determine your profit. Put it on Sched C, fill out Schedule SE for Self Employment tax Sprinkle in a little savings for retirement Fill out Schedule M for the Making Work Pay Credit Got Milk? It goes with kids? Add n 3 more forms and we're ready to Rock N Roll. Or Visit WBTax.Com and download a quick kit and send it to me!

Randall the EA

What he Jss said. I totally agree!

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