Do I have to register my company if I sell online?

A business license is a requirement for online selling and is one. Operating an online business does not exclude you from certain legal formalities. A business license is one of them. There are no commercial licenses specific to e-commerce.

Instead, you should treat your business like a physical store when it comes to the licenses and permits you need. Fortunately, even if you sell to states across the country, you'll only need licenses from the city and state of operation where your business is located. This is different from collecting e-commerce sales tax, which must be done in any state where you have a sales tax nexus. If the company is to engage in hazardous activities such as firearms, drug manufacturing or selling alcohol, federal permits and licenses are required.

You may not need a federal license or permit if your company is not involved in these types of activities. There is also a difference between an online business that sells a product and provides a service with respect to the type of permission needed. Start with your local chamber of commerce, you need a business license before you can get a business bank account. Companies are required to apply for a business license because it provides a way for the government to track companies operating in the area and track tax revenues.

Some states and local municipalities require a business license for even the smallest sales, such as garage sales, but others are more accommodating. AccountEdge Pro has all the accounting features a small business needs, combining the reliability of a desktop application with the flexibility of a mobile application for those who need access on the go. A sales tax license is regulated by the state and allows your company to collect and remit sales taxes to the issuing state. If you sell both online and offline or manage inventory and fulfillment from home, it's more difficult.

It is vital that you obtain the right licenses and permits to be considered a legally operating online business. Texas has state sales taxes and, therefore, requires anyone selling goods and services to tax Texans Find out how real businesses are still relevant and profitable (and even growing) in a world that faces new challenges every day. The question of whether you need a business license and what type should be answered early in the process to ensure that everything runs smoothly. If you haven't obtained a license yet, you can set up your online store and sell some products.

After you determine which online business licenses and permits you need, you will follow the instructions for each specific license. This information may include the outstanding features that your company will provide, any relevant experience that you or your partners bring to the company, various reasons why your type of business will be successful, and the advantages that your business has compared to similar businesses. The process and fees vary by state, and some states do not require registration or fees for DBAs. With a plethora of great e-commerce platforms to choose from, online businesses present almost limitless opportunities.

Your local small business administration can also offer free advice for business owners who want to obtain their licenses.

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