Do you have to have a license to sell clothes?

0 votes
asked Jan 28, 2022 in Investing by levisara (2,210 points)
Do you have to have a license to sell clothes?

1 Answer

0 votes
answered Feb 2, 2022 by Shaoxing (1,610 points)
You don't need to have a license to sell clothes as an individual but as a business you do.

If you want to start out selling clothes as an individual you can do so online such as through Poshmark, Ebay etc without the need for a business license.

Then as you get the sales of the clothes going you can then get a business license and open up a retail store to sell clothes if you want too.

To operate a business legally you're required to have a business license.

When operating a business you also need to have a separate business bank account to keep your personal money and business money separate.

Having a business license also makes your business look more legit and more trusting to people.

A retail license is a license that allows you to legally sell merchandise or goods to the public and operate a retail business.

A retail license specifically authorizes your business to sell items to the public.

Not all places require a retail license, so check with your local government's business development office.

In many cases, your resale license doubles as authorization to sell items at retail and, of course, to collect the tax.

A vendor's license is a license that allows you as a vendor or retailer to sell goods, services etc.

Vendor's license can refer to a basic business license or a tax registration, or a vendor/contractor for a government agency.

The law requires any person or business making retail sales of tangible personal property or taxable services to obtain a vendor's license.

There are several types of vendor's licenses.

Most retailers have either a regular county or a transient vendor's license.

The vendors license allows you to legally make transactions as a business instead of just as an individual.

Most businesses need a business license to operate legally.

The type of license and license issuer depends on the type of business and usually needs to be renewed after a set period.

Renewing a vendor's license is usually easier and sometimes less expensive than obtaining one, so missing deadlines is ill-advised.

According to the U.S. Small Business Administration, any business activity overseen or regulated by a federal agency needs the appropriate agency's approval.

For example, businesses that transport or import animals or animal products across state lines should check with the U.S. Department of Agriculture.

Those manufacturing, importing or selling alcohol should refer to the Alcohol and Tobacco Tax Bureau and the local Alcohol Control Board.

Businesses that work with firearms need to consult with the Bureau of Alcohol, Tobacco, Firearms and Explosives.

Individual states impose their own regulations on businesses.

Details can be found on state websites, often under the department of taxation or the specific agency overseeing a particular industry, such as the alcohol control board.

Businesses that operate in more than one state many need multiple licenses.

Some cities and towns require a vendor's license to do business within their boundaries.

Some of these also require a physical inspection of the business location.

Check local laws to see what paperwork and fees may be needed.

106,119 questions

111,802 answers

1,333 comments

7,057,635 users

...