Hey all, I formed an Indiana LLC last year for my woodworking side gig. So far I've only sold at local craft fairs. I'm about to start selling through my own website and maybe Etsy. Do I need to register separately with the state to sell online, or is my LLC formation enough? I keep seeing conflicting stuff about seller's permits and remote seller rules. Any Indiana-specific guidance would be appreciated.
LLC Compliance
Does an Indiana LLC need a separate registration to sell products online?
Your LLC registration is separate from tax registrations. For Indiana, you likely need an Indiana Registered Retail Merchant Certificate (RRMC) through INtax if you're selling taxable goods. That's a sales tax registration, not a business entity filing. Check the DOR site.
Wait, so the the LLC formation isn't enough? I always assumed it covered everything. Following because I'm in a similar boat.
Nope, entity formation and tax permits are different. Also, if you're selling on Etsy, they might collect and remit Indiana sales tax for you depending on makretplace facilitator rules, but you still need to be registered as a seller. It gets messy.
I've been selling online from my Indiana LLC for three years. You need the RRMC. Simple as that. Don't overthink the remote seller stuff unless you're doing big volume. And Etsy handles a lot of it now. My advice: just call the Indiana DOR, they're actually helpful.
Thanks, grumpycabbage. Did you have to file anything else besides the RRMC? Like a separate online sales permit? I've read about a 'seller's permit' but it seems to be the wame thing.
Same thing. Indiana doesn't have a separate online seller permit. RRMC covers it. You register, get your certificate, and you're good. Just make sure you file your sales tax returns even if you have zero sales for a period.
Not to hijack, but does anyone know if this applies to digital products? I sell PDF patterns from my Indiana LLC and I'm confused about whether I need the RRMC for that.
Digital products in Indiana can be taxable depending on what they are. Prewritten software and digital books are generally taxable. But custom stuff or services might not be. You should definitely check with a tax pro on that one.
Honestly, just get the RRMC. It's like $20 and takes 20 minutes online. Then you don't have to worry about it. The state isn't going to come after you for having it if you don't end up needing it, but they will if you need it and don't have it.
This thread has been super helpful. I didn't even know what an RRMC was. Going to register this week.