How to Start an eBay Business
"Step 1: Register your business...
Step 2: Find stuff to sell...
Step 3: Manage the auction process...
Step 4: Provide great customer service...
Step 5: Build a brand on eBay...
Legal and tax tips for eBay sellers
When you sell on eBay, you're subject to most all federal and state laws, taxes and rules that apply to retail businesses generally. Here are some tips to help you stay out of trouble on eBay:
1. Set yourself up as a legal business. Get federal and state tax ID numbers for your business, as well as any licenses and permits your state requires for you to sell your merchandise. If you're using a trade name, register it with your city, town or county clerk's office as your state law requires.
2. Register for your state's sales taxes. If the winning bidder is a resident of your state, you'll have to pay sales tax on the bid amount. Put the following statement on all eBay auction pages: "Residents of State X [your state] must add ___% sales tax to their winning bid."
3. Sell only legitimate merchandise...
4. Resist the temptation to "shill." If you (or a friend or relative) are ever tempted to bid against legitimate bidders in an attempt to drive up the price of your products (an illegal practice called "shilling"), think twice. Not only will eBay's fraud department shut you down permanently if they catch you, but many state attorneys general are bringing criminal charges against flagrant offenders, with eBay's cooperation."
Read more in this msn.com article found via this Small Business Brief post.
