Operating in the virtual space is no exemption from legal obligations. Obtaining ecommerce business licences not only makes you a legitimate entity, but protects you from possible federal lawsuits as well.
As discussed in our previous blog about Registering E-Commerce Businesses, there are various variables to go about when registering your online company in the US, such as the industry, business size, nexus state and others. Aside from the complex taxation system of different state areas, acquiring e-commerce licences and permits also abide by the same guidelines which initially ticks off your entrepreneurial zeal.
But there is no need to bury your head in the sand. Though the process may be tedious, adhering to the law yielding the e-commerce industry means you’re starting your business in the right foot.
There are several prerequisites to accomplish to get your legal documents. Before heading to your designated federal government agency, make sure to finalize the following:
Under the federal permits, it is best to check with the US Small Business Administration (SBA) where your business is categorized then head to the right federal agency to start the license acquisition process.
However, the state issued permits will be based on your business’ core operations and your location. These licences often come with a termination date so make sure to keep tabs on your due dates and renew these documents ahead of time if you don’t want to get troubled getting a new one.
The e-commerce license cost will depend on the nature of your business and the corresponding agency you are assigned.
Licenses issued by the state are usually costing from $50 and $400, with an additional $25 for the processing fee. These business licences are usually terminated by September 30 which is the end of the fiscal year.
DBA, on the other hand, varies from every state. They normally cost between $10 and $50, though most are under the $20-$25 bracket. DBA licences last for 3-5 years.
There’s more than just the legality of obtaining an e-commerce business license. If you have a viable business to grow, these paperworks is going to be your starting point in growing the entity.