People sometimes get pretty excited when they make a few sales on eBay. Getting extra money from items that have been lying around the house is a great to pay for birthday presents, a new TV, or even pay for a vacation.
But what if you want to take things to the next level in your financial life? What if you hate your job and you want to get out of it so badly that you just want to walk out some days and never come back? You think about it but then the financial reality hits like a ton of bricks and you grind your teeth and go back to what you were doing.
Selling online is a great way to transition from working for someone else to working full-time for yourself because each auction you have listed is like having your own salesmen out there working for you while you do other things (by the way, this is one of the key to getting rich). Set up multiple auctions and you’ll have your own team out there working for you and be making money while your working, sleeping, or walking your dog.
It all sounds good but there is a catch….there are a few things that you will need to do before you make your bundle of cash and tell your boss to shove it. These are easy and will only take a few minutes of your time, but they are critical for the long-term success of your new business.
The first is to get a business license. This is very simple process where you’re going to come up with a name that you will use to do business as (or what is commonly referred to as DBA). I won’t get into he different types of business structures, but the easiest one to get set up in is the sole proprietor although you may want to change this later on.
Do an online search for your state’s department of revenue and go to their website. More than likely you should be able to download a Master Business Application from there (they may call it something else but it should be something similar in name to this). If you are unsure about anything on the form, the site should have their phone number listed there and just give them a call. They want to help you get set up because more business means more tax revenue for them.
You may also need to have your department of revenue check to see if the name you have chosen is available for your DBA. If someone else already has it then you will need to think of something else.
Once you have your business license you will also need a reseller’s certificate or license. Sometimes your tax ID will be sufficient but legitimate wholesalers will generally require you to have this simply because if they are ever audited they will need to be able to show the auditor why they didn’t charge sales tax on items that they have sent to people like you and me. The reseller certificate will do this. Basically what it means is that the wholesaler is no longer responsible for collecting sales tax on those particular items they have shipped to you.
To get a reseller certificate you will need to have your business license first. In many cases you may be able to download this form from the department of revenue website. Print it out and fill in the required information on it and then fax this to your wholesaler. You will then be able to start buying at prices that will make you more completive than other people that don’t get their products from legitimate wholesalers.
The last thing you will need to do is to set up an accounting system to keep track of all of your expenses (product, shipping and auction costs) and your of course your profits. This can be a simple spreadsheet or you can use something like QuickBooks. Whatever you choose, make sure you use it from the beginning. You’re life will be much, much easier.