If I sell intangible goods online do I need a business license/sellers permit?
2 attorney answers
The earning of gross income needs to be reported on your federal and state tax returns. It sounds like you are acting as a sole proprietorship so you would be filing a schedule C on your 1040. He would take all the income minus the expenses (including PayPal fees) and the net income would be taxable to you. You would have to pay self-employment tax as well as regular tax. Please make sure you have a professional tax preparer prepare your tax return. In addition, you should consult with a good attorney to determine whether or not you should form a limited liability company.
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I assume that by "intangible" you mean digital or electronic. According to the BOE, "Your sale of electronic data products such as software, data, digital books (eBooks), mobile applications, and digital images is generally not taxable when you transmit the data to your customer over the Internet or by modem. However, if as part of the sale you provide your customer with a printed copy of the electronically transferred information or a backup data copy on a physical storage medium such as a CD-ROM, your entire sale is usually taxable."
You probably don't need a business license for this activity, but check with your local country.
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