What licenses and registrations do I need to start a small retail shop in Aberdeen, WA?

Daniel wrote: “I will make acquisitions and purchases of unique, rare, and hard-to-find items at the request of customers and clients. These could be physical or intellectual in nature.”

Hi Daniel, DAC Enterprises sounds like a promising venture. You can start small at markets and craft fairs, learn what sells, and grow into a storefront when the regulars demand it. In this answer you will find the business structure, the tax registrations, and the local and industry licenses for DAC Enterprises, plus a short recap at the end.

How you charge decides your tax setup. If you buy items and resell them to clients, you're a retailer and will need Washington's business license and to collect sales tax on physical goods, using a reseller permit when you buy. If you only charge a finder's fee while the client buys directly, it's closer to a service. For intellectual property, use written assignment agreements so the client clearly ends up owning the rights.

What DAC Enterprises needs

1. LLC (business structure) – An LLC shields your house, car, and savings from claims against the business, and it looks more established to customers and banks. If a display shelf collapses on a customer at your booth, an LLC keeps the injury claim against the business and not your home.
2. DBA (doing business as) registration – If you operate as a sole proprietor, or under a name different from your LLC's exact legal name, registering "DAC Enterprises" lets you use it on signs, invoices, and your business bank account.
3. EIN (federal tax ID number) – You plan on 1 employee, so the federal tax ID number (EIN) is required for payroll, and you will also use it for the business bank account and supplier accounts.
4. Washington sales tax permit (seller's permit) – You will be selling taxable goods, so register to collect sales tax before your first sale. It also lets you buy inventory for resale without paying tax on it.
5. Washington employer ID – With 1 employee, you need a state employer account number for unemployment insurance. Washington has no state income tax on wages, so there is no withholding account to open, which is one less form to file.
6. Business license – Washington issues a business license with local endorsements for most businesses, and local requirements in Aberdeen may apply as well.

By the numbers: Banks, insurers, and tax forms will ask for your industry code. For a small retail shop it is NAICS 453998 (All Other Miscellaneous Store Retailers), 459999 under the 2022 update. With 1 employee planned, you are already creating jobs in Aberdeen. That makes 6 items on your list.

Tip: Write down where every sourced item came from; provenance records protect you when selling rare or collectible goods.

To recap: DAC Enterprises in Aberdeen, WA needs an LLC, a DBA, an EIN, a sales tax permit, a state employer ID, and a business license. Get those in place and you can spend your time on customers instead of paperwork.

BusinessNameUSA can prepare and file these registrations for you: start your order.