Blank page

Starting a(n) Business Licenses & Tax IDs

Hi, I'm Phil Tallahassee FL T Shirts I will be selling chips, candy, T shirts, batteries, Phone accessories, clothes, photos, shoes, canned goods, packaged sandwiches, car accessories at Flea

Markets and on the Streets

🛒 Licenses & Permits for Your Mobile Marketplace ✅ General Business License (because even snack empires sta..., Phil.

Hi, I'm cyndi rood What License And Permits Needed T Shirts

FAQs - More...
I have an online store, with no inventory. Will sell t shirts directly to the public. There is no store front, the business is on an ecommerce platform.

, cyndi rood.

👕

Do I Need a small tshirt shop Sellers Permit?

What other permits and Tax IDs Does a small tshirt shop Business Needs to Legally Start business operations? A small tshirt shop business needs a sellers permit if it sells or tshirts.

Licenses & Permits for a Small T-Shirt Shop

Here’s what you’ll need to legally operate:

✅ Seller’s Permit – Required to collect sales tax on transactions.

✅ Business License – Basic registration to operate legally.

✅ Employer Identification Number (EIN) – Used for taxes, hiring, and banking. Not needed for sole proprietors without employees, but recommended.

✅ DBA (Doing Business As) – If operating under a name other than your legal name.

✅ LLC or Corporation Registration – Protects personal assets. An LLC is simpler; an S Corp offers tax benefits for higher revenue.

Why an EIN?

An EIN is like a Social Security number for your business—it’s used for tax filings, opening bank accounts, and hiring employees.

LLC vs. S Corp

An LLC shields personal assets from lawsuits, while an S Corp can reduce self-employment taxes for profitable businesses. Example: If profits exceed $50K, an S Corp may save taxes.

Capital & Equipment Needed

📌 Screen printing machine or heat press ($1K–$10K)

📌 Blank shirts ($3–$10 per unit)

📌 Design software (Free–$500)

📌 Packaging supplies ($100–$500)

Industry Numbers

The custom apparel market is worth over $10 billion—time to claim your stitch of the pie!

Obtain all licenses and registrations here online.   👕 "A well-printed shirt is worth a thousand words—make yours count!"

   Furthermore, a general business permit and a federal tax ID number is also required for any of the above business type organizations.

The only exception to a federal tax ID number is a sole proprietor, who can use a ss# instead of a Federal ID.  However, even sole proprietors as well as all other business type organizations that are employers, independent contractors, LLCs, or corporation must obtain a federal tax ID number.

A tshirt business organization, including sole owners, must obtain a state employer tax ID if hiring employees.  Finally, a  tshirt store  sole owner (i.e., an one person business) can obtain and use a federal ID as a business tax ID instead of the social security number and, in addition, he or she can form an LLC or set up a corporation instead of organizing as a sole proprietor.

   Tshirt stores businesses do not need any surety bond insurance either but they can optionally purchase it and also purchase a general liability business insurance or home business insurance.

✔ Biz Structure

You can choose to be a(n) T Shirts :

Sole Proprietor,
LLC,
Corporation or
Partnership.
After you decide and select your business entity, you need licensing.

✔ Biz License

Abingdon Business Tax Registration ( Business License)
All businesses including home, online or mobile BUSINESS need a BUSINESS license because they are BUSINESSES.

✔ DBA Biz Name

A(n) T Shirts business doing business under an assumed business name in Knox County i.e. you are a business that uses a DBA doing business as trade name to trade that is other than the full legal (first and last -- full name) name of a sole proprietor or a name other than the LLC or Corporation business name need a(n) assumed business name certificate. E.g. you venture into a(n) T Shirts business and you give it a trade name such as "Excellence T Shirts & Associates". You will need to register an assumed business name certificate.

✔ Seller Permit

In IL you need a resale ID ( AKA seller's permit) if you selling touchable items. (A.K.A state id, wholesale, resale, reseller certificate, about $39 for most states).
Seller's Permit

✔ Federal EIN

Note: All businesses need a federal tax ID number except sole proprietors that are not employers and are not independent contractors.
An independent contractor is a self employed business person that receives more than $600 per year from anyone of his or her clients.
IRS rule: The client must issue a 1099 form to the independent contractor and the independent contractor must have a federal tax ID. However, even sole owners may obtain a federal ID and use it as a business tax ID instead of using their own social security number as a business tax ID number.
However, all other licenses that apply to sole proprietors as discussed here are requited regardless of getting a federal tax ID number.

✔ State EIN

In addition you will need a federal and a state EIN if you will hire employees. I.e., a IL Federal Tax Id Number ($29) and a(n) IL State Employer Tax Number

✔ L L C

Instead of filing a fictitious business name DBA Filing (about $49 plus state and legal newspaper publication fees) in Abingdon, Incorporate in IL or form a(n) IL LLC .

Filing a DBA is not required if you will set up an LLC or form a Corporation. If you will do business under your first and last legal name you will not need to get a fictitious business name.
Also note that even using your first and last name may not help you avoid filing a DBA if the name has a suffix such as "& sons" etc.

✔ Incorporation

If you do form an Merchandise Retail llc or incorporate (about $49 plus state fees for most states) your T Shirts business instead of just filing a fictitious business name (dba), that insurs that you don't have personal liability for debts and civile liabililty arising from your business dealings and you will not have to record the Abingdon business name. In lieu of recording a Knox County trade company name (our filing service fee includes trade name registration and newspaper legal publication for 4 weeks) you can also form a corporation in IL or form an IL LLC (starts @ $49 plus state fee for most states & includes bylaws for the corporation and Limited Liability operating agreement for the LLC that is required to open a business bank account). .

Free Seller's Permit

Licenses & Permits for a Small T-Shirt Shop

Why an EIN?

LLC vs. S Corp

Capital & Equipment Needed

Industry Numbers