Close Menu
    Facebook X (Twitter) Instagram
    Running Wolf's RantRunning Wolf's Rant
    • Home
    • Explore
    • Categories
      • Entertainment
      • Facts
      • General News
      • Hacks
      • Opinion
      • Photography
      • Quotes
      • Technology
    • Featured
    • Buy Us a Coffee!
    • Contact Us
    • Privacy Policy
    Facebook X (Twitter) Instagram TikTok
    Subscribe
    Running Wolf's RantRunning Wolf's Rant
    Facebook X (Twitter) Instagram TikTok
    Subscribe
    Home » Hacks » eCommerce Business: How to Legally Start One

    eCommerce Business: How to Legally Start One

    Staff WriterBy Staff Writer Hacks 4 Mins Read38 ViewsDecember 22, 2021
    Share Facebook Twitter WhatsApp LinkedIn Copy Link

    In case you are looking to begin an eCommerce business rest assured that you are venturing into a business that has a promising future. If statistics are to be believed, the number of shoppers online is expected to rise to 230 million by next year.

    NetfloristOfferforge

    But, keep in mind that, similar to any business, beginning an eCommerce business requires you to perform research, plan, and do a lot of hard work.

    eCommerce

    Here are the 7 Steps to Legally Start an eCommerce Business

     1. Writing your business plan: Having a business plan helps in capturing the details of what is entailed by your business and how you are going to operate it. This business plan will serve as a roadmap for your organization guiding you through a startup process and beyond it. Keep in mind that with time, competition, and targets, you will be required to update the business plans. These business plans have to be dynamic documents that will evolve with your organization.

     2. Select the type of business entity: The business structure you have selected decides the personal liability of the owner for the debts, taxes, and administrative difficulty for keeping your organization legally compliant. Some of the usual business entity types are sole proprietorship, limited liability company, corporation, and S corporation. The organizations that will not register with the government for forming a corporation or LLC can be considered to be a sole proprietorship by the IRS for tax purposes.

     3. Registering the business: The business entities are created at the state level. Therefore, the required forms have to be submitted to the government where the organization will be operating from. The complexity and cost of registering a business vary from one state to another. You can also do the company registration online but it is a good idea to verify with the secretary of state to make sure that you are aware of all the requirements. Most states will have the forms available online.

    Support us! Buy us a coffee!

     4. Get an EIN: The long form of EIN is Employer Identification Number and it is a nine-digit number issued by the state or IRS more specifically. This number is used for reporting and tax purposes. It doesn’t matter whether the organization employs people or not, it has to obtain the EIN. Almost all financial institutions need the EIN before opening their business accounts. Even multi-member corporations and LLCs are required to have the EIN. The partnership businesses also need the EIN for filling the distribution forms.

     5. Setting up your credit and bank accounts: One of the more difficult missions for a business is keeping the business funds away from the owner’s funds. This not only makes your bookkeeping less confusing but, it also helps in showing the courts that this organization is a separate financial and legal entity. This reduces the liability risks the owner has to face if the business is sued or runs into financial problems.

     6. Obtaining business permits and licenses: Similar to brick-and-mortar businesses, the eCommerce business has to obtain the necessary permits and licenses for operating legally. These requirements keep on changing depending on the organization’s location. For finding out what permits and licenses are required, the business owners have to check with their local bodies. Keep in mind that there is a certain gray area between state sales taxes and eCommerce sales in the state lines.

     7. Be ready to stay on top of the legal business compliance responsibilities: After you have started your eCommerce business, you will be required to fulfill some ongoing compliance obligations. Some of these responsibilities are universal for all kinds of organizations. While the others depend on business location, type of products, industry, and business structure. Being late or failing to comply with these responsibilities will result in penalties, fines, and it can get worse.

    NordVPN

     Conclusion

    You need to begin your eCommerce business on the right foot. You can get in touch with professionals to get assistance for all the formation settings of your business. They can make sure that the paperwork is accurately completed, and is done affordably and fast.

    Even after the launch and growth of your organization, these professionals can help you out all the time. They are especially useful with compliance requirements.

    I trust that you find this info about starting your eCommerce business legally useful. Feel free to leave a comment below.

    Watch this space for updates in the Hacks category on Running Wolf’s Rant.

    SA Gig Guide

    Like what you just read? Subscribe To Our Newsletter to stay in the loop.

    Feel free to explore our website, check out our Featured Articles or scroll down to see the articles that are related to this article below. We've been around since 2008, so there's plenty of content.

    eCommerce Business: How to Legally Start One 1

    eCommerce Business: How to Legally Start One 2

    Looking for a gift for that special person in your life? Check out Netflorist.co.za, South Africa's top online florist and gift service. They offer flowers, gifts, and hampers for all occasions AND reliable nationwide delivery.

    Business Ecommerce Useful Tips
    Share. Facebook Twitter LinkedIn WhatsApp Copy Link
    Previous ArticleOnline Credit Card Generators: What Are The Best Ones?
    Next Article 9 Tips for Better Sports Betting
    Staff Writer

    Running Wolf's Rant's correspondent who chooses to remain anonymous...

    Related Posts

    By Staff WriterFebruary 20, 2024

    Remember: You Are Never Too Old To Start Your Own Business

    4 Mins Read24 Views
    By Pete CampbellDecember 28, 2021

    Business Structures: Aron Govil Explains Different Types

    5 Mins Read38 Views
    By Sujain ThomasJune 17, 2021

    Essential methods to get your business name right

    6 Mins Read51 Views
    By Lucy JonesMarch 11, 2019

    eCommerce and Shopify: What are the best coaching options?

    4 Mins Read29 Views
    Leave A Reply Cancel Reply

    NetfloristOfferforge
    Latest Hacks
    June 3, 2025

    4 Ways to Boost Employee Morale in the Workplace

    8 Views3 Mins Read
    May 20, 2025

    What are the Types Of Home Furniture?

    19 Views3 Mins Read
    May 20, 2025

    3 Relaxing Books That Will Help You Unwind

    19 Views6 Mins Read
    May 17, 2025

    How Important is the Intent in Marketing?

    16 Views3 Mins Read
    Categories
    Latest in Other Categories
    June 9, 2025

    Why People Play Just for the Bonus Rounds

    9 Views3 Mins Read
    June 7, 2025

    Disney+ Releases Trailer for FX’s Alien: Earth

    16 Views2 Mins Read
    June 6, 2025

    What’s on DSTV in June 2025?

    17 Views5 Mins Read
    May 30, 2025

    16 Series you can stream on Showmax in June 2025

    45 Views7 Mins Read

    Global customers rely on Bloomberg Sources to deliver accurate, real-time business and market-moving information that helps them make critical financial decisions! Contact

    Featured Articles
    June 18, 2015

    Blogging: 25 Useful Tips for Beginners (from SA Bloggers)

    104 Views6 Mins Read
    June 16, 2014

    Capital Craft 2014: My Experience

    105 Views3 Mins Read
    March 31, 2024

    20 Random Funnies (March 2024 Edition)

    46 Views1 Min Read
    November 24, 2018

    Erlich Bachman: 30 Hilarious Quotes

    1,791 Views5 Mins Read
    Support us! Buy us a coffee!
    Subscribe to Our Newsletter

    Join The Wolf Pack!

    Get updates in your Inbox

    Check your inbox or spam folder to confirm your subscription.

    Recent Comments
    • Henno Kruger on Photo Album: Oppikoppi Photos from 2005, 2007, 2009 and 2010
    • Henno Kruger on Oppikoppi Photo Album: Editors, Rival Sons & Wolfmother
    • Tracey Sandenbergh on Oppikoppi Photo Album: Editors, Rival Sons & Wolfmother
    Facebook X (Twitter) Instagram TikTok
    © 2025 Running Wolf's Rant. Designed by ThemeSphere.

    Type above and press Enter to search. Press Esc to cancel.