{"id":5424,"date":"2024-10-01T22:03:16","date_gmt":"2024-10-02T03:03:16","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/starting-a-business\/how-to-start-an-ebay-business.html"},"modified":"2025-06-30T13:56:00","modified_gmt":"2025-06-30T18:56:00","slug":"how-to-start-an-ebay-business","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/how-to-start-an-ebay-business.html","title":{"rendered":"How To Start an eBay Business"},"content":{"rendered":"\n<section data-testid=\"fl-simple-hero\"  class=\"fl-simple-hero\">\n    <div class=\"fl-simple-hero-container fl-container fl-flex fl-items-center\">\n                <div class=\"fl-simple-hero-title\" data-testid=\"fl-simple-hero-title\">How To Start an eBay Business<\/div>\n            <\/div>\n<\/section>\n    <div class=\"fl-container\">\n        <div class=\"updated-breadcrumb-list\">\n            <ol>\n                        <li>\n                <a href=\"https:\/\/www.findlaw.com\">FindLaw <\/a>\n                <span class=\"breadcrumb-separator\" aria-hidden=\"true\">\/<\/span>\n            <\/li>\n                                <li aria-current=\"page\">How To Start an eBay Business<\/li>\n            <\/ol>\n\n        <\/div>\n    <\/div>\n\n\n\n<div class=\"fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30  wp-container-core-columns-is-layout-9d6595d7 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n<div class=\"fl-section-main fl-page-articles fl-section-main fl-section-main-full-width\"><h1 class=\"fl-no-margin-top\">How To Start an eBay Business<\/h1>\n\n\n<figure class=\"wp-block-image fl-no-margin\"><img decoding=\"async\" src=\"https://www.findlaw.com/static/c/images\/image\/upload\/ability-law\/wp-prod\/content-original-images-ThinkstockPhotos-868776554.jpg\" alt=\"\"\/><\/figure>\n\n\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    By <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/amber-sheppard-esq\/\">Amber Sheppard, Esq.<\/a> | Legally reviewed by <a\n                href=\"https:\/\/www.findlaw.com\/company\/our-team\/amber-sheppard-esq\/\">Amber Sheppard, Esq.<\/a>\n                | Last updated\n        <time>\n                            June 30, 2025\n                    <\/time>\n    <\/div>\n\n            <div class=\"fl-gutenberg-byline-editorial-note fl-text-sm\">\n            <p>Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n        <\/div>\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n\n\n    <div class=\"fl-callout-text article-blockquote\">\n        <p>To start a business on eBay, you must create a business plan, set up a <span data-action=\"click-&gt;dropdown#toggle\" data-dropdown-menu-id-param=\"menu_report_term_28935682\" data-dropdown-placement-param=\"top\" data-dropdown-disable-toggle-aria-param=\"true\" data-term-id=\"28935682\">business structure<\/span>, open a <span data-action=\"click-&gt;dropdown#toggle\" data-dropdown-menu-id-param=\"menu_report_term_28935674\" data-dropdown-placement-param=\"top\" data-dropdown-disable-toggle-aria-param=\"true\" data-term-id=\"28935674\">business <\/span><span data-action=\"click-&gt;dropdown#toggle\" data-dropdown-menu-id-param=\"menu_report_term_28935641\" data-dropdown-placement-param=\"top\" data-dropdown-disable-toggle-aria-param=\"true\" data-term-id=\"28935641\">bank account<\/span> and secure funding, and apply for necessary business licenses, permits, and approvals.<\/p>\n\n    <\/div>\n\n\n\n<p><b><i>Form your LLC with confidence.\u202f<a href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115288\/26746?subId1=how-to-start-an-ebay-business-in-content\" target=\"_blank\" rel=\"noopener\">Our trusted partner LegalZoom has packages starting at $0 + filing fees.<\/a><\/i><\/b><\/p>\n\n\n<div class=\"tableOfContent\">\n    <div class=\"table-of-contents\">\n        <span role=\"heading\" aria-level=\"2\" class=\"table-of-contents__title\">Steps How to Start an eBay Business<\/span>\n                <ul class=\"table-of-contents__list\">\n                        <li><a href=\"#Plan\" title=\"1. Start With a Business Plan\">1. Start With a Business Plan<\/a><\/li>\n                        <li><a href=\"#Business\" title=\"2. Set Up Your Business\">2. Set Up Your Business<\/a><\/li>\n                        <li><a href=\"#EIN\" title=\"3. Apply For Taxpayer Identification Number\">3. Apply For Taxpayer Identification Number<\/a><\/li>\n                        <li><a href=\"#Bank\" title=\"4. Open Business Bank Accounts and Secure Funding\">4. Open Business Bank Accounts and Secure Funding<\/a><\/li>\n                        <li><a href=\"#Permits\" title=\"5. Apply for Business Licenses and Permits\">5. Apply for Business Licenses and Permits<\/a><\/li>\n                        <li><a href=\"#Home\" title=\"6. Obtain Home Occupancy Permits and HOA Approval\">6. Obtain Home Occupancy Permits and HOA Approval<\/a><\/li>\n                    <\/ul>\n            <\/div>\n<\/div>\n\n\n<p>eBay is a super popular e-commerce platform that connects buyers to sellers. Its shopping app reaches over 33% of buyers in the United States. Individuals or small businesses can sell items, resell collectibles, or offer handmade products on eBay, but how do you start a successful eBay business? This FindLaw article explains the steps to transition from simply selling items to establishing a legal e-commerce enterprise.<\/p>\n<p>There is a big difference between a hobby and a business. The Internal Revenue Service (IRS) examines nine factors to determine whether\u00a0<a href=\"https:\/\/www.irs.gov\/faqs\/small-business-self-employed-other-business\/income-expenses\/income-expenses\" target=\"_blank\" rel=\"noopener\">your online selling activity is a hobby or a business<\/a>.<\/p>\n<p>A casual seller sells as a pastime and is not looking to make a profit. For example, selling old record albums from your attic would be considered a hobby, even with buy-it-now or auction options.<\/p>\n<p>A business seller aims to make a profit, running their seller account like a business or online store. Some small businesses with physical storefronts also create eBay stores and rely on this income for their livelihood.<\/p>\n<p>No matter which type of eBay seller you are, any profits from sales are taxable. Reviewing a business plan can help you decide if creating a separate legal structure is right for your seller hub.<\/p>\n\n\n<div class=\"general-step-component\">\n    <div class=\"steps-container\">\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            1\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Plan\">Start With a Business Plan<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>Successful business owners start with a\u00a0<a title=\"Creating a Business Plan\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/creating-a-business-plan.html\">detailed business plan<\/a>. Creating your business plan at startup helps you identify your business&#8217;s strengths and weaknesses. Especially with an online business, you want to see how your items for sale compete with similar products in the marketplace.<\/p>\n<p>When crafting your business plan for an eBay business, you should determine:<\/p>\n<ul>\n<li>What items are you selling?<\/li>\n<li>Who is your customer?<\/li>\n<li>How much will your product cost to produce (or buy)?<\/li>\n<li>How much will you sell it for to make a profit?<\/li>\n<li>Will you offer a buy-it-now option or fixed-price listings?<\/li>\n<li>Will you offer auctions for your eBay sales instead?<\/li>\n<li>Have you incorporated the eBay fees into your operating expenses?<\/li>\n<li>How will you ship your product once the item sells?<\/li>\n<li>Will you print shipping labels or have a pre-paid account with a professional mail courier?<\/li>\n<li>Have you researched copywriting for similar items when writing product descriptions?<\/li>\n<\/ul>\n<p>When pricing your items, be sure to factor in the seller&#8217;s fees and shipping costs so you can make a profit.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            2\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Business\">Set Up Your Business<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>The first two steps to starting your own business is to\u00a0<a title=\"7 Steps for Choosing a Business Name\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/chronology-choosing-a-business-name.html\">choose a name<\/a>\u00a0for your business and a determine your\u00a0<a title=\"Types of Business Structures\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/types-of-business-structures.html\">legal business structure<\/a>.<\/p>\n<h3>Choose the Legal Name for Your Business<\/h3>\n<p>A business name is a significant part of your store brand. You want people to notice and remember your company. You can only have loyal customers if they remember you. This is especially true in an online marketplace like eBay.<\/p>\n<p>There are many factors when\u00a0<a title=\"7 Steps for Choosing a Business Name\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/chronology-choosing-a-business-name.html\">choosing a business name<\/a>. Besides enhancing your brand, there are legal implications for a business name. For example, you can&#8217;t use a name affiliated with a branch of government. You also can&#8217;t use a name if it is in use or\u00a0<a title=\"Trademark Protection FAQ\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/intellectual-property\/trademark-protection-faq.html\">trademarked<\/a>\u00a0by another company.<\/p>\n<h3>Conduct Business Name Search<\/h3>\n<p>After selecting a business name, check that no one else has claims to it. You can search for prior name use by checking with your Secretary of State&#8217;s office, the USPTO\u00a0<a title=\"U.S. Patent and Trademark Office: Search our trademark database\" href=\"https:\/\/www.uspto.gov\/trademarks\/search\" target=\"_blank\" rel=\"noopener\">trademark database<\/a>, social media, and the Internet. If the name is already in use, try to pick another.<\/p>\n<h3>Register Business Name<\/h3>\n<p>If the business name is available, claim it for your use. To reserve your business name, you register it with your local city, county, or state office. If you are a\u00a0<a title=\"What Is a Sole Proprietor?\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/what-is-a-sole-proprietor-.html\">sole proprietor<\/a>, you register by filing a\u00a0<a href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115292\/26746?subId1=how-to-start-an-ebay-business&amp;auto-aff-dba\" target=\"_blank\" rel=\"noopener\">fictitious name<\/a>\u00a0or &#8220;<a title=\"DBA Registration\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/dba-registration.html\">doing business as<\/a>&#8221; (DBA) with your local government.<\/p>\n<p>You do not need a separate business website as an eBay seller. But you can register a domain name if you want a website for your business.<\/p>\n<h3>Incorporate Your Business Entity<\/h3>\n<p>Many entrepreneurs choose to <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/why-are-llcs-so-popular--5-reasons-entrepreneurs-choose-them.html\">set up LLCs for their business activities<\/a>. The corporate structure separates your business liabilities from your personal assets. You can register it with the Secretary of State.\u00a0Or you can let our\u00a0<a href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115288\/26746?subId1=how-to-start-an-ebay-business-custom-content\" target=\"_blank\" rel=\"noopener\">trusted partner LegalZoom<\/a>\u00a0handle your business formation filing for $99 plus filing fees.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            3\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"EIN\">Apply For Taxpayer Identification Number<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>A\u00a0<a title=\"IRS: Taxpayer identification numbers (TIN)\" href=\"https:\/\/www.irs.gov\/individuals\/international-taxpayers\/taxpayer-identification-numbers-tin\" target=\"_blank\" rel=\"noopener\">taxpayer identification number (TIN)<\/a> is also known as an EIN. An\u00a0<a title=\"Employer Identification Number (EIN) FAQ\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-taxes\/employer-identification-number-ein-faq.html\">Employer Identification Number<\/a>\u00a0is a nine-digit identification number for your business. For example, when you open a business bank account, apply for business licenses, or file business taxes, you use your EIN.<\/p>\n<p>To get an EIN, complete the\u00a0<a title=\"IRS: Apply for an employer identification number (EIN) online\" href=\"https:\/\/www.irs.gov\/businesses\/small-businesses-self-employed\/apply-for-an-employer-identification-number-ein-online\" target=\"_blank\" rel=\"noopener\">SS-4 application<\/a>\u00a0and submit it to the IRS. It&#8217;s fast and free.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            4\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Bank\">Open Business Bank Accounts and Secure Funding<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>To operate as a business, you want all your transactions to run through a business bank account. Don&#8217;t&nbsp;<a href=\"https:\/\/blogs.findlaw.com\/free_enterprise\/2017\/03\/how-and-why-to-avoid-commingling-personal-and-business-funds.html\" title=\"How and Why to Avoid Commingling Personal and Business Funds\" target=\"_blank\" rel=\"noopener\">mix your personal finances with your business operations<\/a>. This jeopardizes your personal liability protection from your corporation.<\/p>\n<p>Open a bank account using your business EIN. Then, you can link your business account to eBay to get all income from your sales. Be sure to pay all business expenses from your business account.<\/p>\n<p>Depending on your business, you may need&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/start-up-financing.html\" title=\"Start-Up Financing\">a bank loan or financing<\/a>.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            5\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Permits\">Apply for Business Licenses and Permits<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>To operate any business, you need a&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/state-business-licenses.html\" title=\"State Business Licenses\">business license<\/a>. Also, you may need other licenses and permits for your eBay business.<\/p>\n<h3>Seller&#8217;s License<\/h3>\n<p>Most states make online businesses get a seller&#8217;s license for online sales. Each state has its own threshold amount for requiring this.<\/p>\n<p>A seller&#8217;s license authorizes you to sell goods to customers in that state. Some states call this a &quot;sales tax ID&quot; or a &quot;sales and use license.&quot;<\/p>\n<p>According to the Supreme Court in&nbsp;<i><a href=\"https:\/\/www.supremecourt.gov\/opinions\/17pdf\/17-494_j4el.pdf\" title=\"SOUTH DAKOTA v. WAYFAIR, INC., ET AL. CERTIORARI TO THE SUPREME COURT OF SOUTH DAKOTA \" target=\"_blank\" rel=\"noopener\">South Dakota v. Wayfair<\/a><\/i>, all sellers must collect and remit sales tax in states requiring it. So that means that if you are in California and sell to someone in Georgia, you must collect sales tax.&nbsp;<a href=\"https:\/\/pages.ebay.com\/seller-center\/service-and-payments\/tax-information.html\" title=\"EBay: Tax information\" target=\"_blank\" rel=\"noopener\">eBay can collect and remit the sales tax for you<\/a>.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            6\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Home\">Obtain Home Occupancy Permits and HOA Approval<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>Most eBay sellers operate from home. Your city or state may have specific permits for running a&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/operating-a-business-out-of-your-home.html\" title=\"Operating a Home-Based Business\">home-based business<\/a>. Homeowner&#8217;s associations often have rules for operating out of your home. So, review your HOA regulations for home-based businesses. Check your lease to ensure you can run a business there if you are renting. You could get evicted if you cannot operate a business in your leased home or office.<\/p>\n<p>You can also look into a <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/what-is-business-insurance-.html?fli=latl_biz_howto:diy_biz_ins:txt\">business insurance policy<\/a> tailored to handle the risks of your business. You may want to insure against property damage, theft, or personal injury claims.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n            <\/div>\n<\/div>\n\n\n\n<h2>Set Up Your eBay Business Correctly<\/h2>\n<p>To be a profitable eBay business seller, you must first organize your business&#8217;s legal, financial, and tax structure.\u00a0<\/p>\n<p>You may have questions as you decide on your business name and legal entity. Seek guidance from a\u00a0<a href=\"https:\/\/lawyers.findlaw.com\/business-organizations\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">local business attorney<\/a>\u00a0to help you set up your venture for success.<\/p>\n<p>If you are ready to start your business, you can let our\u00a0<a href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115288\/26746?subId1=how-to-start-an-ebay-business-custom-content\" target=\"_blank\" rel=\"noopener\">trusted partner LegalZoom<\/a>\u00a0handle your business formation filing for $99 plus filing fees.<\/p>\n\n\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n    >\n        <span\n                id=\"was-this-helpful__question\"\n                class=\"was-this-helpful__question fl-text-lg-bold\"\n        >Was this helpful?<\/span>\n        <button\n                class=\"was-this-helpful__button 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