I run a small online store selling handmade jewelry. I formed an LLC in Indianapolis last year. Do I need a separate license just for online sales? I've heard mixed things. I already have a general business license from the city, but I'm not sure if that covers e-commerce. Any advice would be appreciated.
Licensing
Does an Indianapolis LLC need a separate license for online sales?
Generally, if you have a city business license, it should cover online sales. But I'd double-check with the Indiana Secretary of State's office. They might require a separate registration for online retailers. I had to do that for my LLC a few years back.
I'm not sure that's accurate. I think the city license is enough for online sales. But I'm no expert. Maybe call the Indiana Small Business Development Center? They helped me with licensing questions.
Thanks, both. I'll try calling the SBDC. I just don't want to miss anything and get fined later.
I went through this last year. For online sales in Indiana, you typically need a Retail Merchant Certificate from the Indiana Department of Revenue if you're selling tangible goods. That's separate from the city license. But if you're only selling services, it might be different. Since you're selling jewelry, you probably need it. You can apply online through INBiz.
Right, the Retail Merchant Certificate. I forgot about that. That's what I was thinking of. Thanks for clarifying.
Does that apply if you're only selling online and don't have a physical store? I thought maybe it was only for brick-and-mortar.
Yes, it applies to online sellers too. The state considers online sales as retail sales, so you need the certificate. It's free to apply, but you have to renew it annually. Also, you'll need to collect sales tax if you have nexus, which you likely do since you're based in Indiana.
Okay, so I need the Retail Merchant Certificate. Do I need to do anything else for the city? I already have the general business license.
The city license should be fine. Just make sure it's up to date. The RMC is the main thing. Also, if you're shipping out of state, you might have to worry about other states' tax laws, but that's a whole other can of worms.
Agreed. And don't forget about the Indiana sales tax registration. The RMC covers that, but you need to file and pay monthly or quarterly. It's a bit of a hassle but manageable.
I'm still confused about the city license vs. state. Can someone clarify? I thought the city license was all-encompassing.