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Although your online business operates within cyberspace, you must still obtain a business license and, depending on your physical location, additional permits in order to operate legally. Obtaining the necessary eCommerce business licenses and permits is an important first step in launching your online business.
eCommerce businesses typically don't need a lot of business licenses, and the ones they do need are likely to be easily obtainable. The following are some common permits and licenses that most online businesses require in order to comply with regulations and tax laws:
A business license allows you to run an eCommerce company within your city, county, or state. To operate legally, almost every online business will require a version of this license.
The regulations governing these licenses and how to apply for them differ by location, so contact your local City Hall or visit your state's Secretary of State website to find and apply for the appropriate license.
Most businesses that sell goods or services online have to obtain a Seller's Permit. To legally sell products online, nearly all states require a Seller's Permit, but the requirements, fees, and other details also vary by state.
Even if you're selling digital or other intangible products or services, you still need to apply for the appropriate seller's permits in your state. Check with your state's Licensing Office or the Department of Revenue to ensure that you have the necessary permits.
Businesses that sell taxable goods and services online must collect sales tax on the items they sell. This necessitates the acquisition of a sales tax license. It is important to note that sales tax varies by state, so you will need to check with the state and localities in which you do business to ensure you are following their rules.
Aside from a sales tax license, make sure to research whether any other tax permits are required by the state in which you do business. One thing you should absolutely avoid doing is collecting sales tax if you aren't licensed, as this can result in significant fines.
Depending on the nature of your company, your eCommerce business may require additional licensing and permits. Check with your state and local jurisdictions to make sure you have every license and permit required to operate your company before you open for business.
Once you have acquired all of the necessary permits to run your eCommerce business, you can finally launch your online store! Need assistance in building your eCommerce storefront? Visit Bliss Drive now and check out our web design and development services for a tailor-fit eCommerce website built with strategies that suit your business.
