Does anyone know if a reseller license is needed to resell ebooks online? Is that considered "tangible property" in the sense that would require a license to resell? My mom has a million questions about it and I honestly don't know what is required. She keeps saying something about being required to pay some huge deposit just to get the reseller license in case your business flops and you can't pay your taxes?
I'm so lost on all of that stuff... if anyone can help me out I would appreciate it so much.
Many ebooks on the market are available with a "reseller licence". That simply means that once you buy the book, the author gives you the right to resell the ebook and keep all the money. It sounds like you're confusing this with a government license of some sort.
The only government license that comes into play is registering your business name with your state, and getting yourself set up to handle sales tax (if you sell within your state).
Ah okay. That makes sense. So the "reseller license" in this case would come from the company who created the ebook who is then giving their clients the right to resell the book - and in that case, the reseller license doesn't have to come from the state? Just the DBA or whatever license is necessary to operate as a business would be needed from the state?
How would you go about setting things up to handle the state taxes?
Yes, the "reseller license" is simply an informal "permission" from the publisher or author.
A DBA is required only if you're using a business name other than your own personal name. To get set up to deal with sales tax, you can go to your state's website and download the sales/use tax application.
Sweet! Thank you so much! I really appreciate your help
Okay so I'm asking about this information for my mom, and I told her what you said - and she keeps telling me that those forms cause so many problems? That they ask you how much you think you're going to earn and they charge you an upfront deposit? Then she said they will force her to file her taxes quarterly? Is it really as bad as she's making it out to be? I've never had to do that before, but she is going on and on about how horrible it is to have to fill out one of those forms because the government basically screws you out of a lot of money upfront?
I'm so lost, I don't understand the process I guess!
I do not know where you come from, but I know a fellow on the net whose specialty is taxadvise. He is offering his service online and will shortly launch an ebook about this subject.
At least I can help you contacting him.
Just send me a pm and let me know, if I can be of help.
