DC vendor license?

[sevengill]

Hi all,
I'm hoping somebody will know the answer to this, as I'm a little confused by what I'm finding online.
I live in Maryland, and so my business is registered here (sole proprietorship). I'm planning on doing quite a few craft shows in D.C. this year, so I want to make sure I'm properly licensed...do I need to get a business license in D.C., or is there a resellers license or vendor license I can get?
Thanks for any info you guys have!
-Dana :)

[BlueLotusTreasures]

Hi Dana,

Depending on your products and/or services, you may only need to obtain a reseller's certificate for DC which you can apply for online. Take a look at Form 500. Here is the link:

http://otr.cfo.dc.gov/otr/cwp/view,a,1330,q,647272.asp#sales.

When I filed back in 2007, there was a $35 fee and I had to go down to the DC tax office to finalize the process. I hope this helps.

JoAnne

[sevengill]

Thanks so much JoAnne! I think that's exactly what I was looking for!! Although...it looks like all licensed street vendors have to pay $375 every quarter regardless of sales!!? Can that be right? That's completely insane. Your $35 dollar fee sounds much more reasonable...perhaps I'm misreading things (I hope). Anyway, thanks so much for leading me to this site!
-Dana

[LovelyKensie]

I found this:
http://dcra.dc.gov/DC/DCRA/For+Business/Apply+for+a+Business+License
There should be a number somewhere... They will tell you exactly what youll need

[BlueLotusTreasures]

Hi Dana,

Jamie has a great idea. Just one suggestion - if I have learned nothing else from 10+ years in tax consulting, always do your research and know what you are talking about before you call. The person you reach may not be a specialist, they might be new to the department, they may not understand the law themselves - you get the picture. Don't assume the person you are going to talk to is a specialist in the subject of your question. Always do the ground work and figure out what you think the answer is before you call, and why you think your answer is correct.

I took a look at the information for street vendors for DC and I don't think participating in a random craft fair meets the definition or the intent of the law. This looks like someone who is actually in the business of 'street vending' - generally, they have a single specific location where they operate from on a regular basis. Here is a couple of pages for you to look at:

http://dc.gov/DC/DCRA/For+Business/Apply+for+a+Business+License

http://dc.gov/DC/DCRA/For+Business/Apply+for+a+Business+License/A+Directory+of+All+Basic+Business+Li...

You are registering to collect sales tax in DC, not set up shop. Make sure the person you talk to knows this. Before you call, try to anticipate what questions the person might ask you and have your answers written down.

Good luck and let us know how things work out for you.

[sevengill]

Wow, thanks so much for all your help and advice!! I'll keep you posted on how things go!

[Former_Member]

I am in the same position that you are in. I obtain the forms for www.taxpayerservicecenter.com to be able to collect sales tax I do not what a DC business license, which cost a couple hundred dollars to obtain. I cannot afford a license. I only have the ability to collect and pay sales tax in Maryland and Virginia. You can email the DC tax office to ask questions at ETSCAccount@dc.gov. I have been waiting two weeks to hear form them. I ‘m really not sure if I can get a DC taxpayer account in time for my next event.

[Former_Member]

Thanks all. I did not know what to do.

[BlueLotusTreasures]

Hi Veronica,

I have found the DC government email to be extremely inefficient. You will be lucky if you every hear from someone. Even calling can be a frustrating experience - after leaving 3 voice mail messages, it still took over a week for someone to return my call.

If you have the time, I highly recommend visiting their office location. It is easy to get to by Metro, it is highly efficient and very organized, and the people have always been very kind and helpful. A totally different experience than my phone conversations with them.

A note to all - if you file a paper sales tax return with DC, make sure you send it certified, signature required so you have proof you sent it in. They have lost every paper return I have sent them and subsequently sent me delinquency notices - I received 4 quarterly notices for the same return and each time I had to send them a copy of the return and a response letter to their letter, which they subsequently lost again. Because I had the signed receipt, I finally found a manager who marked the return as filed (12 months later) - they never did find any of my copies. Additionally, I just received my second delinquency notice for my last return, so the fun begins once again.

Ah, the joy of taxes & government!

[Former_Member]

Dana,

From what I could discern talking to someone at the DC Tax office last year, the "street vendor" license is for food trucks or people that set up carts on the street. If you are doing a craft show, then that show *should* be registered (I mean, really, a good show would be registered) and you fall under their umbrella.

All I had to do when I sold in DC was remit taxes at the end, I did not have to register.

I believe if you do 3 or more shows in one year, though, that rule changes.

[Former_Member]

I was told that I had to register my business (no money up front, but like $250/yr) and then get a sales tax ID. You don't need to file the business registration annual fee, but when you close your business, you will be responsible for the back fees and penalties.

I went down to do all this stuff at the main office, and the folks were efficient and pleasant. Maybe the new building has made things better.