Hey there. I'm new here, and to the reselling world. I am looking to make a living reselling over working as a supervisor of a mental hospital for the rest of my life. :P (can tell that's fun huh?)

Currently my partner and I have sold several hundred items on ebay and elsewhere for a few thousand in the last month or so and we are hoping to grow. Any help is appreciated. I'm 20, and don't have too much experience yet. Looking for some knowledgeable people to help.

I'm located in Michigan, and have a few questions -

1. Do we need a reseller license if we want to start purchasing from large wholesalers? Several sites we've visited have asked for a reseller number.

2. Do we need to become a legitimate business (LLC, Partnership?) and how do we do this exactly? What's the cost? One of the tax sites we looked into for an LLC said an LLC was close to $500+ a year. Is there a cheaper way?

3. Do we have to pay taxes on our profit if we haven't taken any money out for ourselves? (It's all in a separate bank account).

Basically what I'm saying is, we've started doing really well; what's going to keep us from getting into trouble with the law?

Any help is appreciated !