This is general information, not legal or tax advice

Rules vary by state and city. Confirm specifics with your state revenue department or a licensed accountant before you rely on anything here.

Get an EIN

An EIN is free from the IRS and lets you open a business bank account without exposing your Social Security number on supplier paperwork.

Resale certificate

Most states issue a resale or seller's permit that lets you buy inventory without paying sales tax, because tax is collected when you sell. Many liquidators require one.

Sales tax collection

If you sell to end consumers in your state, you generally must collect and remit sales tax. Selling wholesale to other resellers with a valid certificate is typically exempt — keep those certificates on file.

Common deductions

Cost of goods sold, mileage, storage rent, packaging, platform fees, phone and internet share, and business-use equipment. Deductions require records — keep receipts and a mileage log.

Set money aside quarterly

Self-employment income usually isn't withheld. Reserve a percentage of profit each month and expect quarterly estimated payments.