Also known as internet commerce, electronic commerce (eCommerce) is truly an idealistic business in this time of digital age and pandemic. Aside from it will give you the perks of having the virtual transaction while saving so many physical efforts, the system is also much convenient for those who are far from the markets. This type of business circulates to selling and buying of products or services using the internet.
Lots of businesses, even small or large, have shifted to this type of business as it is space-saving, expedient, and flexible to administer and manage. Just like physical businesses too, an eCommerce business is also required to be registered. To help you with the process, follow these steps:
Create Your Business Name
First, it is important to establish the appropriate name for your business as it will be the basis of your website or domain most especially for electronic mails.
Determine Your Business Structure
Moreover, the right business legal structure or entity is essential for this will be your guide on how you would register your business aside from how you want it to be managed. Limited Liability Company (LLC) entity requires a fee for Certificate of Organization. For instance, the Utah LLC cost is about $70 and it varies from every state in the country. On the other hand, sole proprietorships only require business licenses and permits and a cost of $5 if you are requesting a trading name.
Take Note of the Important Details Before Obtaining the License
Aside from knowing your business entity, there are lots of things you should prepare to completely get your business license without a hassle. You must ready: (1) A detailed information or description of your business’ activities; (2) Permits for inspection such as liquor or fire code inspection; (3) A sales tax license that you can get from your state agency.
Apply for the Employer Identification Number (EIN)
Acquiring this nine-digit EIN is a helpful thing as it seeks to separate your personal finances from your business. If you are thinking it requires fees, you can get an EIN for free in the Internal Revenue Service (IRS). You can acquire this either online, by fax, mail, or even by phone.
Secure your Business Permits and Licenses
Obtaining the necessary business licenses and permits will now officially make your business legal to operate in the state you have chosen. Just take note that each of the states in the country has its own rules and regulations. Some states require home-based businesses such as eCommerce businesses to attain a permit to legally operate. Moreover, some types of eCommerce businesses might also include sales tax permits, professional and trade licenses for certain industries, signage permits, and health, safety, and environmental permits.
Create Your Business Website and Databases
Now that your eCommerce business is legally registered, create your website and databases to fully make your internet commerce business functional. This must include the list of the products and services, the transaction processes, and other important commands for an eCommerce business.
Registering your eCommerce business is important to prevent future legal problems. Make sure that you comply with your state’s law and regulations to avoid the hassle of facing lawsuits and losing money because of penalties.