Most don’t talk about business licenses and permits when it comes to online businesses. This is because answers can be gray depending on where your business is at.
Ultimately, it falls down to what you are doing as a hobby or for-profit. What this means is, if you are making a certain amount and have employees, you need to have a business license. If you already have an LLC and EIN, then you definitely need one.
Let’s take etsy and ebay for example. These websites don’t require sellers to have a business license to sell products. In the beginning, you may have been doing it as a hobby, but if it grows, then you will need to treat it as a business and get the required licenses from your state.
Licenses and permits are legal requirements. Requirements are set at the local, state, and federal level.
To get the full answer for your business type and the state it is registered at, I recommend getting an expert like a CPA as this post is purely informational. You will need to discuss this with a professional. For example, if you are selling alcohol or nicotine online, you area going to need more licenses.
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