In the state of Nevada if you have more than 2 sales in a year you are required to have a state resale permit, and a business license. This means you can only sell items online for 2 days out of the year or they can nail you .

They use the 2 days to allow people who want to have garage sales a break in the tax law.

The audit departments at the I R S level and the state levels are so stretched and short handed they have not done much to catch those who sell on ebay or online. They are working on passing a general law that ensures if you sell for profit you will be required to pay income taxes.

We are licensed , pay taxes , make very little money after all the headaches but have a heck of a tax deduction .

Bottom line is if you make a profit on more than a few items or sell for more than a few days a year, you are a business.