Here’s the good news: it’s far easier to get a business license than you think. If you don’t and start importing your Italian wines anyway, you could face a huge fine that will bankrupt you and/or you’ll even have to close down your online store. While you’re deciding on your logo, you should also get in touch with the Alcohol and Tobacco Tax and Trade Bureau to get a federal permit for your business. Let’s imagine you’re a big fan of Italian wines and want to set up an online wine import store. And that’s not even the worst-case scenario. There are some big downsides to taking a risk and not getting a business license when you’re obligated to.ĮCommerce is big money, but if you don’t do your research properly, you could end up paying some hefty fines. You want to put your best foot forward when it comes to your small business, don’t you? Risks of not having a business licenseĮven if your eCommerce store doesn’t have a physical location, the types of licenses you will need to get depend on what you’re selling.ĭo you not think of eCommerce as being in the same category as traditional shops? It’s all just pixels and source code, right? Like we already mentioned, the licensing system is also used to regulate a particular industry and, in some cases, to preserve and promote responsible environmental practices.įor example, an online fishmonger that has a business license issued by the federal fishing and wildlife commission can boost both its branding and credibility compared to other, unlicensed vendors. Yes, we get it – just thinking about taxes, permits, and regulations bore someone to death.īut knowing which licenses and permits you need is just as important as picking the niche and industry for your business. They help to regulate the market and ensure everyone is playing by the same rules. And no one could guarantee that the products are legitimate and not harmful to humans. In general, a licensing system helps both the federal and the state governments to keep an eye on all the business sectors and collect the correct business taxes.įor example, if there were no licensing at all, anyone could sell products like tobacco and alcohol.
The fact that you operate your business online or have a brick-and-mortar store doesn’t make a difference. What is a business license?Ī business license is a formal permission to do business in your chosen field, granted by federal or state authorities.Įditor’s note ? – All entrepreneurs and businesses in the US must have a business license. And in some cases, you’ll need a seller’s permit too. TL DR: ?♀️Yes, you will need a business license to legally sell anything on your eCommerce website. Now, back to business: Should I have a seller’s permit? Do I need a business license to sell online?