# Do I really need a business license to sell tshirts online??



## misfitdevil99

Hello all. So I'm getting ready to start selling my shirts online. I design the artwork on front, get them silk screened at a shop, and then mail them out from my apartment once ordered from customers online. 

I want to do this legally, so I..

Made a website
Got the Fictitious Bus. Name
Got a Fed. Tax ID#

I went to get a Business License, but was told i have to file for a Home Occupation Permit since I'll be doing bus. out of my home. Only problem is, that since I live in an apt. I have to get the owner to sign a noterized statement allowing me to do this. But the apts. I live in state no home business allowed in the lease.

So my question is, if i'm only selling online, and cant get a bus. license, am i screwed??

I'm a total noobe here, so any help would be hugely appreciated.

I live in Redlands, Ca. San Bernardino County.


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## DivineBling

If you want to do it right, you do need a home based business license. It seems you're stuck if the apartment owner won't sign off though. 
Any chance you can move? Rent a room in a house or something?


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## AtkinsonConsult

MisfitDevil99:

Why can't you just use a PO Box? If you need space use a U-Store-It place?

-M


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## tshirtgirl214

misfitdevil99 said:


> Hello all. So I'm getting ready to start selling my shirts online. I design the artwork on front, get them silk screened at a shop, and then mail them out from my apartment once ordered from customers online.
> 
> I want to do this legally, so I..
> 
> Made a website
> Got the Fictitious Bus. Name
> Got a Fed. Tax ID#
> 
> I went to get a Business License, but was told i have to file for a Home Occupation Permit since I'll be doing bus. ot of my home. Only problem is, that since I live in an apt. I have to get the owner to sign a noterized statement allowing me to do this. But the apts. I live in state no home business allowed in the lease.
> 
> So my question is, if i'm only selling online, and cant get a bus. license, am i screwed??
> 
> I'm a total noobe here, so any help would be hugely appreciated.
> 
> I live in Redlands, Ca. San Bernardino County.


 

You are not actually doing business out of your home , you just work from home. It's not like you have people coming in and out of your home to pick up shirts or place orders. You take orders online, and another company prints them for you.
As far as you shipping you dont have to even do that from the apt. , you can drop the packages off. 
I am in Texas and although we run a internet business , and we have a store front but thats because we print inhouse . I work from home taking orders online. Its completely legal here. You are really an internet business and in texas you dont even have to have a storefront. You only need a tex id number to pay sales tax.
Speak to someone else in the office , call them and explain you take orders online and there are absolutely no sales taking place there , but in cyberspace.


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## DivineBling

tshirtgirl214 said:


> You are not actually doing business out of your home , you just work from home. It's not like you have people coming in and out of your home to pick up shirts or place orders. You take orders online, and another company prints them for you.
> As far as you shipping you dont have to even do that from the apt. , you can drop the packages off.
> I am in Texas and although we run a internet business , and we have a store front but thats because we print inhouse . I work from home taking orders online. Its completely legal here. You are really an internet business and in texas you dont even have to have a storefront. You only need a tex id number to pay sales tax.
> Speak to someone else in the office , call them and explain you take orders online and there are absolutely no sales taking place there , but in cyberspace.


In California, they want as much money as possible so we are required to get a business license even if all we do is sell stuff on eBay. That doesn't mean everyone follows the rules, but those are the rules.


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## misfitdevil99

Thanks you all. I did explain it to them. I seriously dont understand, because you're right.. no business is taking place at the apt. except for online. Im wondering what would happen if i do everything else right, but dont get the bus. license. If i'm only selling online, how would they know?? Very frustrating.


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## DivineBling

misfitdevil99 said:


> Thanks you all. I did explain it to them. I seriously dont understand, because you're right.. no business is taking place at the apt. except for online. Im wondering what would happen if i do everything else right, but dont get the bus. license. If i'm only selling online, how would they know?? Very frustrating.


They probably wouldn't know. I know so many people who operate a business out of their homes and never get business licenses. The ones who get caught are because they rent booths at festivals and such and the city goes down the list looking for people who aren't on their books. 

I'll bet it's frustrating because you're just trying to do everything right and pay your taxes!


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## misfitdevil99

Yes.. very frustrating. I mean, if i still do everything else right.. pay state and fed taxes, can they find out i dont have a bus. license?


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## misfitdevil99

I mean, do i need a business license in order to pay state and fed taxes on shirts i sell?


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## DivineBling

misfitdevil99 said:


> I mean, do i need a business license in order to pay state and fed taxes on shirts i sell?


I don't think so, but that's a question better asked of your accountant.


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## binki

If you filed for the fictitious name then the city can find you. you are screwed in redlands...


http://www.ci.redlands.ca.us/community/PDFs/HomeOccupationPermitApplication.pdf


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## hedsteve

My brother does a lot of rentals and there are discouraging things in the lease but if someone asks alot of times he'll let them. Maybe talk to your land lord and see if you can get permission to list the address for mailing and billing purposes.


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## mintprints

Haha I had the exact same problem as you with the city of Redlands, CA and their requiring the signature of the property owner for the home occupation permit in order to get the bus license. And whether online or not you are still "doing business" in Redlands, CA and therefore would need a license. I literally moved out of my house in order to do business in Redlands legally because there was no way my land lords were down to sign off on me screen printing in their newly remodeled home. Haha good luck!


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## olga1

NO, you don't need a business license to sell t-shirts online.


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## gorilladiver

You might also look into shared office spaces that you could use as your business address


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## royster13

olga1 said:


> NO, you don't need a business license to sell t-shirts online.


IMO this opinion is way off base.....

If you are running a business you probably need a business license......Best to check with the jurisdiction you are located in for a definitive answer....


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## binki

As I posted in 2011 and one other did just recently you need a permit in Redlands and in most cities in California.


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## Preston

First suggestion. Move out of the apartment.
Second suggestion. Move out of CA.

Here in Texas all you need is a DBA. Filed with the County and they do not give a where you are running you biz from and then a Resale Tax permit from the state and they don't give a where you are running your business from.

Now some cities here may require you to file something with them but you would only need to do that if you hung a sign on your door.

From what I have seen California is just trying to run business out of the state.


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## tshirtgirl214

I've never heard of a business license in Texas. All you need is a DBA. And a tax id number.
you can run a buiness from home. Plenty of people do it. Just pay your state sales tax apply for an EIN number and file your taxes. 
What if you list your business as a P.O.box?
Lot of businesses do that also


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## Stefano

misfitdevil99 said:


> I mean, do i need a business license in order to pay state and fed taxes on shirts i sell?


You haven't thought this through all the way - maybe you're not familiar with the different factors. I think the "fictitious" business name is going to create problems for you when it comes to taxes. I don't think getting a EIN tax # for a fake business was a good idea either.

(1) When you ship to customers in CA, you need to collect sales tax on behalf of the state and pay them. Will you use your fake name on the filing forms?
(2) How are people on the Internet going to pay you - checks or money orders made out to you, personally? Or to the fake business name? How will you cash the fake name checks? Set up a bank account with that name? See below.
(3) If you take MC/Visa, you will need a merchant gateway. Where will those funds be deposited? Most banks require you to set up a business account to do this. And that generally requires paperwork (articles of incorporation, LLC certificate, sole proprietorship certificate) to show you are a legitimate business and a tax ID. 
(4) All deposits made to that business account are reported to the IRS. So you will have to give the bank forged paperwork with your fake business name so it matches the inaccurate info you provided the IRS for the tax ID? 

Big mess ... if you want to avoid all this you can be totally illegal (lots of people are), not get the license, take only money orders made out to you, and don't pay sales or income taxes.


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## owennollie

Hi all i am wanting to start selling shirts online. I design the artwork then have a local printshop print them for me and sell them on instagram then ship to customers. I wont make a ton of money but a little extra to help with bills and such. What do i need to do so i dont get in a bind at tax time? I am in Texas.


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## atomicaxe

A buddy of mine was in the same situation as you OP. He just got a PO box and that was fine for him. He stated his business as an internet based business that didn't have a physical location since he did it from multiple locations (true since you need to do most of it online and through shipping and pickup from stores) and he had no real inventory (still true since you really only fulfill orders based on small print loads) 

His local city hall was fine with that. 

If they require a physical location, look into a flex space to rent. Think of it like a shared office that 40 some odd people might share the space with you. It provides you with a work area, a meeting room and usually a shared kitchenette area to work from. Think of it like a coffee shop without pretentious dinks. Flex Office Space | DC Shared Office Spaces and Affordable Coworking that one is a good example, and a little bit more pricey of an example I've seen ... but they do have a 'virtual' lease so those who do need a brick and mortar location for paperwork and a conference room occasionally.


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## Eforcer

*[QUOTE*=misfitdevil99;994803]Thanks you all. I did explain it to them. I seriously dont understand, because you're right.. no business is taking place at the apt. except for online. Im wondering what would happen if i do everything else right, but dont get the bus. license. If i'm only selling online, how would they know?? Very frustrating.[/QUOTE]

That's where the cliche comes from...Loose lips sink ships...Internet business you have & pay sales tax your In like flint!




Tee-Up!


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## threepointfive

DivineBling said:


> They probably wouldn't know. I know so many people who operate a business out of their homes and never get business licenses. The ones who get caught are because they rent booths at festivals and such and the city goes down the list looking for people who aren't on their books.
> 
> I'll bet it's frustrating because you're just trying to do everything right and pay your taxes!


so would I need multiple business licenses for each different city that i will be attending events in? im new to this as well and i just contacted riverside city hall and the lady was literally no help she literally didnt explain **** to me just gave me other numbers to call.. very frustraiting


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## SarinaCL

tshirtgirl214 said:


> You are not actually doing business out of your home , you just work from home. It's not like you have people coming in and out of your home to pick up shirts or place orders. You take orders online, and another company prints them for you.
> As far as you shipping you dont have to even do that from the apt. , you can drop the packages off.
> I am in Texas and although we run a internet business , and we have a store front but thats because we print inhouse . I work from home taking orders online. Its completely legal here. You are really an internet business and in texas you dont even have to have a storefront. You only need a tex id number to pay sales tax.
> Speak to someone else in the office , call them and explain you take orders online and there are absolutely no sales taking place there , but in cyberspace.


I’m also located in Texas. I recently ironed on some patches to a sweatshirt for daughter’s boyfriend. He’s a teacher and I spelled out his school name. Now everyone is going wild over them, teachers and students. They’re wanting to pay me to make them for every campus. I may even try to do the surrounding school campuses. 
I would have to buy sweatshirts and patches in bulk and make them from my home. Would I need a license for that?


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## splathead

SarinaCL said:


> Would I need a license for that?


It varies by jurisdiction. check with your city or county hall.


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