Most consumers use a credit card when making online purchases.
Most of the developed world has access to the Internet. According to Nielsen Net Ratings, three out of four people in the United States have access to the Internet. So it is no surprise that more and more businesses want to operate online. The question of whether or not a license is required to sell products online that can often a concern for those looking to expand into the world of e-commerce.
Legality
The online world, that includes e-commerce, is not regulated by any government agency, therefore, does not require a business owner to be licensed to sell goods and or services online. However, a person is required to obtain a license to conduct business in a face-to-face setting, an online business owner is also required to have his business registered for it to legally operate, that may include doing online sales. In most states, if you are doing business using a name other than your own, you need to file a "doing business as," or DBA, form with your state.
Store and Online
If you are a business owner who is interested in opening a physical store, and offering some of the same goods and or service online via a website, you need to have a business license for the store. Likewise, if you are the owner of a service-oriented business, you may be required to obtain a professional license. Laws concerning what professions require a professional license vary from state to state, so it is best to contact your state's department of labor for specific information.
Taxes
As a rule, the responsibility of paying sales tax falls to the buyer not the seller. Some states have begun to impose tax laws for online sales; however, because the Internet is not regulated by any federal tax laws, most people do not pay taxes for purchases made online. When a person buys a book from an online bookseller with a physical store, they do not pay sales tax because the store they are buying from online is registered as a separate entity from the physical store, i.e. one without an actual location, and, therefore, not subject to state sales taxes. Business owners are, however, responsible for state and federal taxes on the revenue generated by their businesses.
The Future
The Internet is still a largely unregulated area of the business industry. As a result of the explosive growth of the online industry and e-commerce, it is entirely possible that regulations concerning online sales licenses may be enacted in the future. For now, business owners are free to take advantage of the relative freedom of online sales.
Tags: online sales, business owner, physical store, access Internet, doing business, from online