Laws on ebay stores

This message was sent from: E-Commerce Laws
http://forums.oscommerce.com/viewtopic.php?p=211052#211052
----------------------------------------------------------------

OK, I'm trying to understand all of this. What are all these ebay store owners and these palpal store owners doing to be a legal business? 

Also, I have seen small businesses shop at club stores (Sam's / Costco) and they don't pay tax on items for resale? I guess they pay tax later. Do online stores do this same thing?

I am wanting to do things correctly and legally, even if I only sell $10.00 worth of merchandise the first year. I just get the feeling that a great many are just selling things on ebay and other places without legally keeping track of things.

Thanks