I am looking to sell instructional videos exclusively online through a Yahoo store (total home based operation). Monthly sales estimate to be less than $1500. No employees. I do plan on getting a merchant account for credit card. Must I apply for any business license or permit? If so what are they? Thanks.

In California, it just depends on where you live. I live in an unincorporated (very rural) area and no business license is required for a home business. However, 18 miles away in Temecula, you are required to have a business license.

Just make sure you get a state id from the franchise board. Any sales you make to Californians you will have to collect sales tax and report that.