What can I sell on eBay without a business license?
Personal Items and Occasional Sales
Selling your own used clothes, electronics, books, or furniture is generally considered a personal sale and doesn't require a business license. The IRS doesn't tax you on personal items sold at a loss, but you may owe taxes on profit if you sell for more than you paid.
eBay allows up to 200 listings or $20,000 in sales per year before they report to the IRS (as of 2024). However, state and local rules vary; some states require a license even for occasional sales if you're selling for profit.
- Used personal items: no license needed
- Handmade crafts: may need license if regular
- Collectibles: no license for personal collection
- Check state and local rules
When You Might Need a License
If you buy items specifically to resell, you're running a business. Most states require a sales tax permit or business license in that case. You'll also need to collect and remit sales tax in states where you have nexus (which can be triggered by selling on eBay).
eBay may automatically collect sales tax in some states, but you're still responsible for compliance. Consult a tax professional or your state's revenue department for specifics.
- Buying to resell = business activity
- Sales tax permit often required
- Nexus rules vary by state
- eBay collects tax in some states
Common mistakes
- Assuming you never need a license if you sell on eBay—rules depend on volume and intent.
- Ignoring sales tax obligations, which can lead to penalties.
- Thinking handmade items are exempt—many states require a license for regular craft sales.