So I sell hand-tooled leather goods online and occasionally at markets. I thought I was all set after I got my state seller's permit last year. Then a friend who does craft shows mentioned I might need a local business license too, and possibly a separate permit for the city I vend in. I've been operating for months thinking I was fully legal. Now I'm paranoid. What am I actually missing?
compliance
I found out that state registration isn't the only requirement
Oh yeah, state registration is just the beginning. I found out the hard way that my city required a home occupation permit because I was storing inventory in my garage. Nobody tells you this stuff upfront.
Depends on what "state registration" means where you are. Some states have a general business license, some don't. But the city/county layer is almost always separate. Did you check with your local clerk's office?
@tradeposting I haven't. Honestly I didn't even know there was a local layer distinct from the state stuff. I'll look up my city clerk tomorrow.
Don't forget sales tax on the craft show sales. If you're traveling to different cities, some of them want a transient vendor permit. It's like they smell out anyone making an honest dollar and want a cut. :P
This is why I only sell digital stuff now. No inventory, no home occupation nonsense. But good luck, the permit maze is real.
You should also double check whether your business name needs to be registered separately from your LLC or sole prop. I filed my DBA and thought that was the same thing as a license. It wasn't.
The DBA thing got me too. Also if you're doing markets in different cities, some of them don't care as long as you have your state permit, but others are sticklers. I've had to get a one-day permit before for a weekend festival.
Honestly the safest move is to just call your local small business development center. They usually know the layers and it's free. Way better than guessing from forums (no offense to anyone here!).
Thanks all. I'm going to make some calls. The garage storage thing is worrying me now because I also keep my inventory in the garage. Does anyone know if that's usually a big deal to fix?
Depends on your city. Mine just required a form and a small fee, no inspection. But a friend of mine had to get a zoning variance because her neighborhood was residential-only. Good luck.
I just went through this. You might also need a separate permit for holding inventory if your garage is on a different property than your home, but usually if it's attached it's fine. I think. Not a lawyer.
Honestly I'd rather deal with the permit maze than get hit with a fine later. Just start with the city clerk and ask "what do I need to sell online and at markets?" and see what they throw at you.