Have you ever wondered if you need a business license to sell on Etsy, Shopify, or any online platform? Well, in this informative video by Healthy Wealthy Skinny, the creator discusses the six steps you need to legally operate an online business, regardless of the platform. The video covers important topics such as registering your business, obtaining an employer identification number (EIN), and the need for a professional website and email address. It also mentions the requirement of obtaining a business license, insurance, permits, or professional licenses, depending on your location. This video is part of a series for Etsy beginners, offering valuable tips for running a successful Etsy shop, listing items, shipping orders, and increasing sales.
In this engaging video, the creator of Healthy Wealthy Skinny answers some of the most frequently asked questions from new Etsy sellers. The video covers the topic of whether a business license is necessary for selling on Etsy, Shopify, or any online platform. It provides a disclaimer that the creator is not a legal or financial professional, but shares personal experiences and research. The video also mentions a special bonus where Tailor Brands can assist with business registration and logo creation, offering a discount with a coupon code. So, if you’re curious about the legalities of selling online and want tips for running a successful Etsy shop, this video is a must-watch!
Steps to Legally Operate an Online Business
Starting an online business can be an exciting endeavor, but it’s important to understand the legal requirements involved. By following these six steps, you can ensure that your online business is operating within the bounds of the law and set yourself up for success.
Registering your business
Registering your business is an essential step in establishing its legitimacy. The process will vary depending on your business structure, whether it’s a sole proprietorship, partnership, corporation, S corporation, or limited liability corporation (LLC). Research the different types of business structures and choose the one that best suits your needs. If you operate as a sole proprietor under your legal name, registration may not be necessary. However, if you want to operate under a different name, known as a “doing business as” (DBA), you may need to file for a DBA with your local county. If you choose to incorporate your business, you will need to register with the Secretary of State in the state where you operate.
Getting an EIN and business checking account
An Employer Identification Number (EIN) serves as your business’s social security number. While not required for sole proprietors without employees, obtaining an EIN can provide your business with its own identity. Partnerships and corporations, on the other hand, are required to have an EIN. To apply for an EIN, you can easily do so through the IRS website. Having a separate business checking account is also beneficial for tracking business income and expenses separately from personal finances. It can simplify tax reporting and help you stay organized.
Creating a professional website and email address
Establishing a professional online presence is essential for any online business. A well-designed website can help build credibility and attract customers. Choose a reliable website hosting platform that suits your needs, and consider hiring a professional web designer if necessary. Your website should effectively showcase your products or services, provide clear contact information, and have a user-friendly interface. Additionally, creating a professional email address that matches your business domain can enhance your credibility and make communication more streamlined.
Obtaining a business phone number
Having a dedicated business phone number can add a level of professionalism to your online business. It allows customers to easily reach you for inquiries or customer support. There are various options available for obtaining a business phone number, including virtual phone services that offer features such as call forwarding, voicemail transcription, and contact management. Choose a solution that aligns with your business needs and budget.
Getting a business license
Obtaining a business license is a requirement for selling online, and the specific requirements vary depending on your location. Research the local regulations and licensing needed for your type of business and ensure that you comply with all the necessary requirements. Depending on your location, you may need to apply for a general business license or specific licenses related to your industry or products. Contact your local government office or licensing agency for information on how to apply for a business license.
Obtaining necessary insurance, permits, or licenses
Protecting your online business is crucial, and having the right insurance coverage can give you peace of mind. Business insurance can cover various risks, including liability, property damage, and product liability. Assess your business operations and determine the type of insurance needed to adequately protect your business and assets. Additionally, depending on your industry or the products you sell, you may require specific permits or licenses. Research the specific permits and licenses relevant to your business and ensure that you have obtained them before operating.
By following these steps, you can ensure that your online business is legally compliant and set up for success. Remember to consult legal and financial professionals for personalized guidance based on your specific circumstances. Best of luck in your online business journey!