Permits for online business

[Calico]

COVID has undoubtedly introduced a new stage of online businesses. Some days I think about starting my own online shop, but I'm worried about the complicated legal steps. How difficult is it to get everything ready? Will it be less complicated if I use websites like Amazon or eBay?

 

[Eric]

COVID has undoubtedly introduced a new stage of online businesses. Some days I think about starting my own online shop, but I'm worried about the complicated legal steps. How difficult is it to get everything ready? Will it be less complicated if I use websites like Amazon or eBay?

There are online platforms that let you monetize on your own site, like Wix, and even Xenforo (the forum platform this site's based on). Not something I've ever tried or know too much about though.

Agreed, I think it'd definitely be less complicated to create an online eBay/Amazon/Etsy "store". There are lots of different vendors represented on those sites. I'm sure you have to share a lot more earnings with those companies but you also get more traffic... You just have to consider how those factors balance against each other for your particular use case.

 

[Calico]

Creating a seller account at those third-party websites does sound easier than starting from scratch alone. On the other hand, if I had to apply for related licenses and permits on top of paying the selling fees, I might as well set up a dedicated website from the beginning. It's all about timing and the business situation.

 

[Cass]

You could probably get your business running more quickly by using a platform that's already built, like Amazon, Etsy, or eBay. They take a cut of your profits, but if your priority is to get started quickly, then they're worth a look. Unfortunately, most states will still require you to get a seller's permit, which is primarily used to collect and track taxes. You might also need a sales tax license.

 

[Calico]

Unfortunately, most states will still require you to get a seller's permit, which is primarily used to collect and track taxes. You might also need a sales tax license.

If I'm not mistaken, a seller's permit and sales tax license are the same. I will double-check them after this. From what I understand, I probably won't need a business license, but I should look into building and environmental permits if the goods are produced at home.