Legal requirements and taxes in drop shipping business?
415308
Canada, because you are located in Canada and doing business there.  Location of the drop-shipper is irrelevant, because the buyer purchased the goods from you.
174479
If you are offering a service for a fee you are a business.  The sales tax rules are state mandated not federal.  Check with your local state tax office. In Arkansas it would be the Department of Finance and Administration.  In Florida it would be the State Tax Collector's Office.
1030903
Look at the California Business and Professions Code.  You can find it on the internet.
292581
IRS.GOV look under pub 557 that is Tax-exempt status for your business. That might help.
689162
There shouldn't be a problem with a small business out of your home of this type flying "under the radar" without licenses if you are not visited by clients and only receive visits by USPS, UPS, Fedex, etc.\n\nNot that running without the licenses is the correct thing to do.  Business licenses are part of the revenue arm of the city, county, and state that you are in, and you haven't told us where you are.\n\nWithout that information, it's hard to even find the correct web sites to determine what licenses are appropriate for clothing sales.\n\nWill you be ordering the clothing already made, or making it to accomodate your sales?  If you are making the clothing, are you also making the fabric or will you be buying fabric and cutting it to make the clothing?\n\nLets define the scope and location of the business so we can actually help you in greater detail.\n\nYou may want to start here:  Does you state have a sales tax?  Merchants collect sales tax.  They have to pay it to the state board.  In California, that's the state board of EQUALIZATION.  In Nevada its the board of TAXATION.  Usually those boards have a brocure about how to start a business.  If you are buying clothes and selling the clothes without making the clothes, you'll need a resale permit to avoid paying sales tax on the purchases, and you'll probably want to find out about the appropriate industry trade shows for your business.  \n\nAttend them.  You'll learn a lot from the exhibits sections alone.  I've attended trade shows for over twenty years, and rarely if ever have attended the lectures (which are almost always available on tape afterwards, for a lot less money).\n\n-EN-
73325
Yes, it's okay.  You just need a paper trail.  The rental business needs to make sure they use their tax id when purchasing.  This eliminates the sales tax for the purpose of resale.  That resale can either be retail or rental.
828392
It does not matter where you work.  Whatever entity you set up, you will wish to take profits out of the business to live on, right?  In that case, you will have to pay NY taxes becaus that is where you live.  Remember, not all free advice is worth the money!  (Think about it.)\n\nYou should consult with a NY CPA, who will be able to advise you best.  Do not rush to a low-tax jurisdiction without considering the effect on your own personal return.  Ultimately, that is the bottom line.
38079
There is really no paperwork requirement necessary to expand unless you expand into another state in which case you may have to file with local taxing authorities.  Also if you expand into a regulated industry you might have to consider certain regulatory requirements.  Depending on the industry you chose to expand into there can also be licensing or other industry filing requirements.  For example, if you own a car painting shop and decide to buy some trucks to haul freight you would probably need to ensure that you have the necessary commercial driving licenses, permits, insurance, etc.  Along those lines, if you paint cars and also want to sell wallpaper (or whatever) you don’t have to file anything, as long as your paying your taxes and obeying all the laws that regulate business in your area. If you plan adding something new in your current location beware of your local municipal ordinances, your area may be zoned for your current industry, but not what you want to do.  Example, I have a consulting firm and now I want to sell retail, but my building is only zoned for professional services.\n\nCompanies expand in different ways within and outside of their own industries. I assume you are talking about what is necessary for “horizontal integration”.  This is when a company expands into different products that are similar to their current products.  For example, I have a donut shop and I decide to reach more customers I am going to sell pizza at lunch time.  Sure it’s a weird stretch, but the expansion is really within the food service industry.  When you hear horizontal integration think of a flat line like the horizon – you are moving side to side as you expand, not up or down the supply chain.\n\nSometimes companies expand to get better control over their required resources or suppliers.  Vertical integration is when a company expands into different areas along their product's supply and production path.  To make sense of this think of a company like a stationary manufacturer.  If they decide they want control over their supplies they might buy a paper mill.  They might go a step further and buy timberland to secure the paper resource. They are expanding their control along different points of the same production path, but in vastly different industries.   When you hear about a vertically integrated company think of vertical line.  Vertical integration means they own resources up and down their supply chain. \n\nSome people will suggest that you should concentrate on one area, but there are many companies that have expanded into very diverse industries and they do very well.  Look at a company like Berkshire Hathaway.  They own Geico Insurance and sell everything else from candy bars, to woven carpets, to industrial solvents.  Are the successful at it?  You bet! A single share of Berkshire Hathaway stock will cost you $89,500!\n\nGood luck!
1135748
I use drop shippers for my eBay business. As far as getting into the drop shipping business, you better know what you are doing because it is sharkville. VERY competitive. Do you homework, get educated and watch out for scammers.
148044
This basically depends upon the type of business.  Contractors (Building, Electrical, Plumbing, Concrete, etc.) are required in every state to pass a state qualification test and to be bonded.  Businesses that sell things have to register with the state to pay sales tax.  Corporations and Limited Partnerships need to pay a corporation tax to the state, in the state in which they are incorporated and the state in which they do business (called a "Foreign Corporation" here in California.\n\nLocal governments may regulate your business, like medical clinics or child care, for instance, and require a permit.\n\nA business that is run entirely out of the home, without visitors/customers coming to the home, mostly needs no license unless selling something that is taxed, and then must register and pay sales tax.\n\nI run a multilevel marketing company from my home.  All sales are through the internet and shipping is done by the supplier.  I have no regulations and no business license.  I am required to pay state income tax and federal income tax on my income from this business.  My little town doesn't need to give me a business permit unless I have customers into my place of business (my home.)  Most home-based businesses do not get a business license, unless they are required to do by the municipality.
236926
Generally, there is no "requirement" to be a corporation, but corporations (in addition to LLCs) are nice for liability limitation.\n\nCorporations are reasonably cheap to form.  A nice neighborhood type lawyer will probably do the entire incorporation for you for few hundred dollars plus filing fees - including getting your EIN number, any sales tax registrations, and possibly filing your S-Corporation election (so that your corporation avoids "double-tax").   If you're not incorporating in NY but you're doing business there, you'll also want to consider "qualifying" your corporation to do business in NY.   Again, that is simple stuff that can be handled by a neighborhood lawyer.\n\nGood luck.
1027132
You'll have to charge sales tax to those buying within your state.  To do that, you'll need a sales tax number.  Ask a local retailer where to get the application.  It's illegal to do business and not charge residents the sales tax.\nTo buy from suppliers within your state, you'll need the tax number to give them (because as a retailer you are exempt from paying the sales tax on items you buy for resale); otherwise your supplier will have to charge you sales tax.\nYou'll also need an assumed name (dba..."doing business as") certificate to be on file with the county clerk.  That's a legal requirement in most states.  You'll have to go to the county courthouse to fill out that form.  You can ask them there how to go about getting the sales tax number.
1025243
In our state you have to be registered with the corporation commission.  They may give you information you need.  Check into what your insurance will cost, your tags, fuel, tires, federal form 2290 (Heavy use taxes).  You will need to be in a drug testing consortium, and the Department of Transportation is very strict on equipment maintenance, overweight, recordkeeping, etc. Also you may need to get a federal id number.  You can get federal froms and publications at www.irs.gov. Oh, figure out how you willl promote your business, yellow pages, etc.\n\nHope I'm not scaring you off, Been there, Done that.  It's a lot of work but fun.   Good luck.
336009
Wow, I wish I had a solid answer for you but tax laws are so squirrelly, and they vary from state to state. I can tell you that you want to be very careful to take the correct steps because nothing hurts a business (or your wallet) like IRS trouble. Consider a consultation with a CPA. These guys are worth their weight in gold, and usually know what your business needs long before you do.\n\nYou can also ask your questions here: http://www.irs.gov/\n\nAnd here's a real, legal list of deductions for the self-employed: http://www.irs.gov/businesses/small/arti...\n\n\nBest of luck with this,\n~Tia~
170082
This depends on the area you are doing business in. Every state has different regulations and many cities and counties have different requirements also. \n\nWhere are you staring your business?
250767
the vision, the drive and the hunger.\n\na business plan, business needs to be registered, name needs to be trademarked.depending on " tax ID " you also need you friend or family behind you support will help you go a far way and most importantly Money!!!!\n\n\ngood luck!
255132
http://www.worldwidebrands.com/\n\nSearch for "Drop Ship" with Yahoo or Google search engine.\nBe careful - not all dropshippers are the same. Read the fine print and Terms agreements etc.