Legality of operating as a retail reseller from your home...

[Anonymous]

I thought I would see if any one else has run into something like this in their own area...

Initially for our online store, we were going to work primarily with vendors who could drop ship and fulfill the items for us. We are finding that most of our favorite vendors do not have a drop ship option in place so we were going to instead buy products wholesale, store the products at home, and ship them out ourselves as orders come in.

My state requires that you submit a "Home Occupation Application" if you operate a retail sales website from home. It states that your occupation cannot involve the retail sale of merchandise manufactured off the premises. So now I am very confused as to how online resellers can operate. 

Has anyone ever run into something like this or have any insight as to how one would legally operate around this? Am I restricted to only vendors who can drop ship for me?

[Erica · Accepted solution]

Hi @Anonymous !

This is Erica from Shopify.

From what you're saying you're based in the USA, is that right?
The reason I ask is that you mentioned: "My state requires...".

To be honest with you, I am not a tax expert and I wouldn't want to point you to a solution that might not be completely correct.

I suggest you to get in touch with your local tax office or a professional accountant for this.

They will be able to give you a clear answer based on your specific case, as they are based in your local region and would know the tax and legal laws for this better than anyone else.

Also, I was thinking if it's ok with you to move your post to the Taxes topic board where it might get more appropriate eyes and give your post a better chance for an applicable answer.

All the best!
Erica

[Anonymous]

This thread can be deleted, the local permit office gave me incorrect information. They're a little confused as to how online businesses work. Perks of living in the south...