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How do I start my eBay business?
Eight steps to make your eBay business legal and professional.

You may already have a name for your business and know what you're going to
sell, but before you run out and print business cards like those other unguided
souls, spend some time on the basics to make your enterprise is legal.

Here are some TO DOs for starting your eBay business:

  • File a fictitious business name. While there are Web sites to help you file a
    fictitious business name, it's so easy and more satisfying to do it yourself.
    After you pick a name, you research that name to ensure that no on else is
    using it. There's no charge to do the search yourself in Clerk-Recorder's
    office. So head to your local Civic Center. There you'll complete a page or so
    of paperwork for a nominal fee (around $2.50 to $10). The Clerk-Recorder's
    office will inform you of newspaper options where you are required to publish
    the fictitious business name for four weeks (the newspapers will charge
    around $25). If you'd like to see how it's done in Orange County California

  • Get a business license.  A business license is available from your city. This
    costs around $100, plus the quarterly sales tax you report from you state if
    applicable (usually annually, but sometimes quarterly). Fines can be steep if
    you don't stay current, so make sure to pay the bills and stay on top of the
    paperwork. The Small Business Administration can help you get started in
    your state. To obtain a business license you must first present evidence that
    you've filed your fictitious business name.

  • Obtain a seller's permit (a.k.a. reseller’s license, Seller's Tax Permit). Get a
    sellers permit through your state's Department of Revenue. In California this
    would be the California State Board of Equalization. This valuable piece of
    paper in California costs $50 and enables you to get wholesale pricing and to
    purchase products for your store without taxes. If you don't have one,
    vendors will charge you sales tax. It also provides a resource of classes to
    help you with your taxes.

  • Consider an auction license. If you sell other people's items on
    consignment in the auction format, you may need an auction license.
    Entrepreneur.com has details.

  • Establish payment processing: If you're going to be raking in the cash,
    you'll need a place to stash it. At minimum you must open a bank account
    (checking or savings). We recommend opening checking account along with a
    PayPal account. Opening a merchant account to accept credit cards will go a
    long way towards establishing credibility.

  • Open a business banking account. Go to the local bank and bring your
    seller's permit, a drivers license, a social security number, and some cold hard
    cash! Or open a checking account now. WAMU is now part of Chase.

  • Open a PayPal account. Knowing that 95% of all eBay businesses use
    PayPal should be incentive enough to open an account. PayPal is currently the
    only payment processing solution outside of money orders and credit cards
    that's integrated with eBay, so it's must have for your eBay business! Even if
    you already have a PayPal account, you really should have two accounts (one
    as a buyer's account and the other a seller's account).

  • Open a merchant account to accept credit cards (optional). When you
    accept credit cards you should expect sales to increase by as much as 50-
    400%! And having credit cards available to your clients is a great alternative
    to PayPal. The one we recommend is backed by Warren Buffet's favorite
    Wells Fargo Bank.

  • Open an eBay stores account (optional). While not necessary to sell on
    eBay, when you open an eBay store, you make it easier for your past
    customers to find you and Register an eBay store in three easy steps. It's
    around $15 a month and worth every penny.

Continued... Next steps for your eBay business
M.C. Nygard, right,
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