Is a business license needed for selling websites or web templates?

Hello,

If I'm just selling websites or web templates online is a business license needed or can I just sell under my name? Is a business license needed only when sales tax is involved? I live in the state of Georgia.

Is there an advantage if I get a state business license for selling websites / templates online or is it unnecessary for what i'm doing?

Although, I'm unsure what you can write off. I probably won't be leaving the house much.

I'm just a little confused about when I would need to get a license. Thanks for any help I can get.

 

Business registration and business licenses are two different things. Licenses are probably going to be regulated by your municipality. Call city hall and check, but if you are operating out of your home you may not. Registration has to do with the ownership of your business. You don't need to register if you do business in your own name. If you want to use a company name you will need to register and then you need to decide what type of registration is best for you.

 

I believe you have to register your business at your local county building or city hall.. Usually you can just do a DBA or operate under your own name. I would really contact your local county clerk.

 

Licenses in the US are required to sell goods (physical goods)
Business registrations are optional, it is good if you are making a lot of money, the reason is, it can protect your personal property if you get sue or business is ruin. At a certain point, you are required to register as a business. But if you are starting out, it is not required.

The bad side of business registration is, it is taxed, any money you take out is taxed again. Double taxation, less profit for you.

Selling digital goods does not need a license or a business registration. Hope that is clear. If you live else where, it might be the same, but in some cases, licenses and business registrations are not the same.

For tax write off, you must keep records and deduct that I think in business expenses, if its a business, if not it is itemized as a personal deduction if it is greater than your standard deduction. See your tax adviser. What qualifies as a business expense, you must look that up, tax changes every year.

 

This is not quite right. You don't only need a business license if you are selling physical products. Some cities/counties/towns require one for providing services and some require one for home based business. Call city hall and see the rules where you live.

Also double taxation might be the case, but there are plenty of ways to set up a business without double taxation. In fact, setting up your business properly can save quite a bit of tax.

 

No you do not need a business registration to sell websites online or a template. For physical goods you will need a reseller license, still you do not need a business registration, unless you are at a certain sized.

Remember -business registration is not the same as reseller license (reseller license is needed for selling physical goods, ie. shoes, computers, anything that you can touch).
Business registration is not need, unless you are at a certain sized.
Business registration is optional for starters, not required.

But in some cases, in some other countries, they treat business registration as reseller license (both the same thing) in the USA, both are treated differently. But in some counties in the US, they may be the same thing or just 1 thing. But in most cases, they are 2 different things, check your local city. (I checked with mine, they are dumbnut who doesn't know a thing, but get pay for being there).

I would probably say, most city halls are full of DN.

 

ok, I think I understand better now. I will see what is required for my state. Thanks for all the info.

 

Your post is entirely wrong. A single owner is never required to set up a business entity - i.e. corporation, llc, partnership - regardless of the amount of business you do. You are required to file a DBA if you are not doing business under your own name.

There is no double taxation unless you set up a C corp.

Regardless of whether you sell digital goods or not, there may be a local license required even if you operate out of your home. Depending on your state, you may need to get a resellers permit and charge sales tax under certain circumstances.

If you have a business, regardless of the type, you need to keep track of your expense if you want to deduct them. They are not personal deductions.

 

As double taxation, I was referring to a separation of the Business Entity for purposes of limiting liability (your personal asset will still be yours) if you set up your business as a separate entity as LLC or Corp.

If it is just a partnership or a solo one man business, then there is no double taxation, and there is no limited liability, you are 100% liable if the business entity is not separated. Those two goes hand in hand, benefits +/non benefits.

I did not say a single owner is required to set up a business entity. I did say, that in certain places you are required, and that if you are at a certain amount, you are required to set it as a business entity, in some situation you need a business entity.

For example, in some partnership, they prefer to do partner with an entity, not an individual. Else they will not work with you.
In dropship, some require a business license (registration) else they will not sell to you.
For example, if you are bartering goods and do not set up a business registration. You will be prosecuted by the IRS. and the department of something.

I known cases where people were selling cigarettes (for resell) to their neighbor and were arrested, prosecuted, and fined.

So no, I am not wrong.

I know cases, where some people buy goods from another country, bring it in the US for the purpose of resell but does not declare it, they are also arrested.

In other countries, same thing, you buy let's say 10 cell phones, over the limit, you did not declare it, they will fine you for anything extra, saying you should have a business license to do it.

It is against the law in all countries not to have business license for certain things, because you are suppose to file taxes and set up a legal entity. You cannot do business without a registration for some things. Ie. Do you want to sell hotdogs in NY city?

You need a permit. (business permit, doing business as, that's a registration).

You do need it for certain cases.

But for selling websites online? NO, unless the government want to tax people to the extreme because they waste too much.

 

You still don't know what you are talking about and shouldn't be trying to give advice as it is obvious you have no personal experience.

"As double taxation, I was referring to a separation of the Business Entity for purposes of limiting liability (your personal asset will still be yours) if you set up your business as a separate entity as LLC or Corp."

Wrong. llc or S corporations have no double taxation.

"For example, if you are bartering goods and do not set up a business registration. You will be prosecuted by the IRS. and the department of something."

Wrong. You don't need any business registration. Not reporting income is what the IRS cares about.

"I known cases where people were selling cigarettes (for resell) to their neighbor and were arrested, prosecuted, and fined."

You need a "Tobacco License" but a separate legal business entity is not required. An llc or corporation wouldn't help you as it does nothing to shield you from criminal actions.

"But for selling websites online? NO, unless the government want to tax people to the extreme because they waste too much."

Wrong again. You need to report any income you make. A "business registration" plays no role. Not paying taxes on income is a good way to go to jail.

"At a certain point, you are required to register as a business."

Total crap.

 

An LLC can be elected to be double tax. Yes it does have double taxation, if you elect it to, the answer is Yes.

LLC do have double taxation. If it elect to. Look up Google LLC.

A business registration is needed in some states in the USA - if you are providing a type of service that pays. REQUIRED in some cases. Look it up in Google.

MJ- not sure where your total craps comes from.
You might want to do some Googling before running your mouth.


To everyone else: http://en.wikipedia.org/wiki/Business_license
In it, there is "business registration"

Where it is required in many places in the USA. Not only America, but in many places around the world.

Here's a quote:

"Business registration is required by most jurisdictions. A business license can be a business registration, but many jurisdictions require further licenses beyond registration.

The business activity and physical location (address) determines most license requirements. Other determining factors may include the number of employees and the form of business ownership, such as sole proprietor or corporation. Incorporation is not the same legal process as being licensed to do business. Government agencies can fine or close a business operating without the required business licenses."

 

You need to go away.

"The LLC avoids "double taxation."

http://www.enitia.com/corporateform.php

Your statement:

"At a certain point, you are required to register as a business."

Now post a link validating that blanket statement or STFU.

 

MJ: Đidn't you read the above? Sources are given:

The business activity and physical location (address) determines most license requirements. Other determining factors may include:
See previous post.

A business license/registration does play a very important role.

If anyone listens to MJ craps he's putting out. You can go to jail.

 

As I posted, a license may be required depending on the local jurisdiction, but your statement of a "Business registration is optional for starters, not required." is total crap.

You now are changing "business registration to "business license/registration" but at least you have realized you were wrong on all your other points

 

I was referring to in some cases. Not all cases where it is required. I specifically referring to selling websites online for starters.

Stop picking a sentence and bicker at it, read the whole thing. Grow up MJ.

 

"At a certain point, you are required to register as a business." now you changed it to "in some cases" "business license [or] registration" ---- lol.

 

At a certain point still holds: Read below:

The business activity and physical location (address) determines most license requirements. Other determining factors may include the number of employees and the form of business ownership, such as sole proprietor or corporation.

MJ again, grow up. Business activities do change, you can move your physical business, and employees do grow. You should try to grow up.