How do I get an online store in Yelm, WA licensed and registered?

Josh wrote: “My store is online. I operate out of my home but use a fulfillment center in California, so I don't hold inventory. I sell nationwide and will extend to Amazon as well.”

Hi Josh, Nook Supply is an exciting name to see on a new business in Yelm. Personalized shirts, mugs, puzzles, and baby gifts make people smile, and a single viral design can keep orders flowing for months. Here is what we will cover: how to structure Nook Supply, the tax IDs it needs, and the licenses that let you open in Yelm, then a quick recap.

Storing inventory in a California fulfillment center can create a sales tax presence in California, so you may need a California seller's permit even though you live in Washington. Washington also wants you registered for orders shipped to Washington buyers. Amazon will handle tax on its own orders.

What Nook Supply needs

1. LLC (business structure) – Forming an LLC puts a legal wall between the business and your personal assets. If a tumbler's lid fails and a customer is scalded by hot coffee, an LLC keeps that injury claim directed at the store.
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 "Nook Supply" 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 Yelm may apply as well.

By the numbers: Banks, insurers, and tax forms will ask for your industry code. For an online store it is NAICS 453220 (Gift, Novelty, and Souvenir Stores), 459420 under the 2022 update. With 1 employee planned, you are already creating jobs in Yelm. That makes 6 items on your list.

Tip: Remember that marketplaces often collect sales tax only on their own platform, so sales through your own website may need your own permit and filings.

To recap: Nook Supply in Yelm, WA needs an LLC, a DBA, an EIN, a sales tax permit, a state employer ID, and a business license. With the paperwork done, the fun part begins: serving your first customers.

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