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Do I need a Business Licence to Sell Intangible Goods on the Internet?

Discussion in 'General Business' started by Going Green, Dec 25, 2011.

  1. #1
    As an ordained minister who only offers online prayer services and does not solemize weddings do I need a busness licence to sell intangible goods in the state of Nevada?

    Thanks
     
    Going Green, Dec 25, 2011 IP
  2. mhovingh

    mhovingh Well-Known Member

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    #2
    As far as I know you do not need a business license to do business, anywhere within the US. In the US, you can do business as a sole-proprietor, under your own personal name. You just claim your business income/expenses with your personal taxes at the end of the year. Your accountant (or your tax software) will have separate federal tax forms that are for self-employment which you fill out in addition to your normal personal tax forms. It can vary by state and I am not 100% familiar with Nevada state tax, but usually you don't have to do anything special for state income tax. You just carry over the numbers from federal and pay state tax based on your income.

    You may need to pay sales tax, depending on how the State of Nevada treats it. It will depend on whether what you are selling is considered a good or a service (just serving downloads = goods, customize prayers or blessings = service) and how the state treats it in terms of sales tax.

    For sales tax you should be able to file for a sales tax account with the state through their website. You should be able to just use your social security number when setting up your sales tax account, but I am not 100% sure on that. Even if you do have to file to create a basic business and get a EIN from the federal government before getting your sales tax set up, I believe the LLC filing fee in Nevada is under $100. The forms aren't to hard to go through and you should be able to download them right from the state website. You won't need a lawyer to set up a basic LLC or file for sales tax, just a mind that can fill in some really basic forms and an hour or so at most of time to do them.

    If you want to claim tax exemption as you are involved with religion, you may need to get in contact with an attorney. It is possible that you would need to form your own religious entity (tax law for religious enterprises is pretty far outside my wheelhouse). A cheaper option might be to consult with a CPA as they typically charge quite a bit less per hour and will have a good handle on tax laws and the steps you should need to take. At worst, they will give you some info about it and refer you to an attorney for the rest, while at best they save you a lot over paying an attorney for the info.
     
    mhovingh, Dec 25, 2011 IP