Tax Permits – What You Must Know About Tax Permits and Drop Shipping on eBay
I have been where you are, perhaps wanting to sell on eBay or already selling but unsure of whether or not you need a tax permit or some sort of business license. I know how confusing this may be, and the point of this article is to tell you exactly what you need to know to get started selling physical products on eBay or from your home or website. What you must know–a tax permit–sometimes called a resale certificate–is required by your state of residence if you are going to be reporting sales tax to your state treasury. If you are selling physical products on eBay or any other selling environment to residents of your state, then you will have to report your income and pay sales tax. If that is the case, then you will need a sales tax permit. You must also know that you will need a sales tax permit in order to purchase products from true wholesale businesses. Your sales tax permit grants you the legal right to purchase wholesale goods without paying sales tax.
