Do You Need a Business License to Sell Online?

With the rising number of COVID-19 cases, there are lots of sellers who have to close their physical stores and start selling online. The main reason is that thousands of customers prefer to purchase goods from online stores without leaving their houses, since nobody wants to risk their lives by getting infected of this endless virus.

As a result, e-commerce sales are hitting all the records in sales. Thus, Amazon has reported $386 bn in sales in 2020, so, selling online has never been so popular as now. That’s because there are lots of people who intend to start selling online, but do not know where to start. We suggest that you read this blog about how to launch an e-commerce business without facing any issues.

For example, one of the first questions that interested many sellers whether they need to obtain a Business License for selling online or not. Today, we are going to guide you through the entire process of launching an e-commerce business and figure out whether you need a Business License for your online business, and how you can obtain it. But, first of all, let’s try figure out what a Business License is and why you need it.

What Is a Business License?

A business license is a document which provides you with an opportunity to run your business in the United States. Keep in mind that requirements for obtaining a business license may vary depending on your certain state’s requirements. However, the main idea of all business licenses is the same: The Government allows you to run your business in the specific area.

A Business License for Online Business

It doesn’t matter whether you are going to run your business online or to set a physical store, you are still required to obtain a business license, since it is an essential part for establishing your business. However, if you intend to obtain a business license for your online business, you have to keep in mind that there are several additional requirements that you have to consider first.

Do I Need a Business License to Sell Online I am an Existing Seller?

If you are an existing owner of a brick-and-mortar store, there is no need in obtaining an additional online business license. Which drastically simplifies the process of migrating to the e-commerce platforms. You can also read one of our previous blogs about the importance of business license in your business.

If you intend to sell online, you have to reach out to your local jurisdiction and figure out what kind of you need to obtain in order to start selling online. Additionally, factors such as the category of the product that you are going to sell can affect the type of your business license. Therefore, it is so important to contact a business advisor who will help you handle this process and figure out which type of business license suits you more.

How to Obtain a Business License?

Once, you have figured out which online business license you need, it’s time to understand how to obtain it. Generally, there are two main ways for applying: online and mailing in forms. Another crucial aspect that you should keep in mind is that in some cases you can apply before you start selling and in other cases, you can apply for it only by growing your business to specific size. Again, here also you have to cooperate with a legal attorney who will help you figure out all the important aspects within this process.

The entire process of obtaining a business license is pretty simple. However, we strictly recommend that you contact a tax professional like Prestige Auditor’s team which will help you in this process from scratch.

By working with our team, you will be aware of the most vital aspects concerning e-commerce, since if you operate in e-commerce without proper documentation, you risk facing lots of issues like suspensions.

Our team will not only help you obtain a business license, but also figure out how to get Tax exempt on Amazon, and obtain an LLC for online business. Contact us and we will help you set up a profitable business within no time. You can visit our website where you can find lots of useful information concerning our services and read tons of interesting blogs about business, taxes and much more.