Do I Need a License to Start an E-commerce? ~ Biz.com Small Business

By Lanee’ Blunt

Sell your products online.

An eCommerce does not require a lot of overhead. Operating an online store is a lucrative way to make money 24/7. You will need to do a lot of planning and researching products but after you set it up you can earn money every day. There are inexpensive tools and free web hosting which gives you the opportunity to set up your catalog and shopping cart on the web and start selling your products online.

Requirements

An E-commerce business will need a business license if you are starting your eCommerce in an office, warehouse, or at home just as any other business you are required to get a business license. A state business license is required for tax purposes and conducting business.

Collecting Sales Tax

When your business has a physical presence in a state, for example a store, office or warehouse (a nexus), then you must collect sales tax from your customers in that state. If you do not have a physical presence in a state then you will not have to collect sales taxes. There are so many different sales tax jurisdictions in the US and determination can be a challenge, so some online shopping cart software offers the function of automatically calculating sales tax rates and adding them on when applicable. There are some states that don't have sales taxes Alaska, Delaware, New Hampshire, Oregon, Montana and Hawaii. Most states have sales tax exemptions on certain items for example, food.

See also