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Running a Retail Biz in Your Home

Ready to jump into a retail biz? Make sure you have the proper permits first.

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This story appears in the October 2006 issue of Start Up.

Question: I want to start a out of my house. Do I need a resale license? And what about a federal ID number and a business license?

Answer: A resale license or permit, which may have a different name depending on your state, enables you to buy products for resale without paying on them until you resell them to a purchaser, from whom you collect the tax. Some suppliers may sell to you only if you have a resale number, which indicates to them that you're a legitimate merchant. To find the name of the tax agency in your state responsible for , go to your state's website or see www.govengine.com and Lexisone. From your state's tax agency site, you can get the forms you'll need for reporting your sales.

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