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llrosie12
New Member

If I resell clothes on Poshmark for profit, do I need to get a small business license in order to properly file taxes from my sales, or can I just file a Schedule C?

 
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2 Replies
Anonymous
Not applicable

If I resell clothes on Poshmark for profit, do I need to get a small business license in order to properly file taxes from my sales, or can I just file a Schedule C?

there is no such license for federal purposes and if your selling for a profit, schedule C will be the form to report it.   business licenses are a matter of state and local law and is not an income tax item.     however, you should contact a professional to guide you through record keeping and other things that should be done for various tax purposes.   my GUESS, is that you should be collecting sales tax on some or all of the sales and that would probably require a business license or registration with the state which the pro can help you with.      if your operating out of your home or apartment, you should contact your insurance agent to make sure you have proper coverage. many other things that a local pro could inform you about.  those required and those optional.    

Carl
Level 15

If I resell clothes on Poshmark for profit, do I need to get a small business license in order to properly file taxes from my sales, or can I just file a Schedule C?

You should at a minimum, check with your local jurisdiction courthouse. For example, I am a self-employed computer consultant. In my county I am required to have a county occupational license. This is something the IRS could care less about. But for my business to legally operate in my county I am required to have an occupational license. At a cost of $22 a year, it's no big deal.

If I operate or conduct my business in any of the other surrounding counties, I am required to have an occupational license for each county I conduct business in. Again, not a big deal. But not having one can cost thousands in fines and penalties, not to mention court costs if caught operating or condicting business without the appropriate license.

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