My plan is to set my basement up like a retail store. I will be buying my merchandise from a wholesaler. I was hoping I could only use a sellers permit, however I didnt know if I needed a LLC license or anything else. I also will be selling my products on ebay..--Answer1:Check with the County Clerks office. They will be able to tell you. It varies from state to state and sometimes county to county so you should check there..--Answer2:At the very least, you will need to get a sales tax permit in order to be sure youre paying the proper sales tax. You may also need to check with the city.township you live in to see if they require a city/township sales tax permit. Your best bet for the best business formation for you would be to go to www.irs.gov This federal site will explain to you about the different types of business entities. You may also want to consult your tax adviser to see how any possible business formation may affect your personal taxes.