Selling online: What permits do I need?

Whether you’re starting your online – business in the USA, UK or EU, getting the correct documentation together is a crucial step. To help you on your e-commerce journey, we’ve created this handy guide on the permits you need to sell your clothing, beauty or home brands online in these three markets. 

What is a business license or permit?

A business license is a permit from the government that gives you permission to operate your business and sell to consumers online. The country or the state where your business operates will determine the type of business license you’ll need. However they all do the exact same thing – these permits confirm that you’ve received approval from the government to run your business in a specific area.

Let’s take a look at the business licenses required in the USA, UK and EU.

Permits for selling online in the USA

Selling online in the USA does mean that you’ll have to apply for several licenses and permits, which will vary from state to state. However, don’t worry about this initial hassle of obtaining the right documentation. The USA is such a huge market with so many potential customers that it will be well worth the effort for your brand! 

Business Operation License

This license allows your ecommerce business to conduct business in your city, county, or state. Virtually all online businesses need a version of this license to operate legally.

The regulations surrounding these licenses and how to register for them vary by location. The best thing to do is check your state’s Secretary of State website to find and apply for the correct license. The good news is that it’s pretty easy to obtain this license, and you’ll only have to pay a small fee.

Doing Business As (DBA) License

You only need this license if you want to operate your online business under a name other than the legal name registered. 

For example, if you used ‘Sunny Days Apparel’ in your incorporation documents, but want to run your business using the name ‘Sunny Days Swimsuits’, then you’ll need a DBA certificate.

If you want to register for a DBA, you must apply with your county or state.

Seller’s Permit

Nearly all US states require a Seller’s Permit to legally sell products online, but the requirements, fees, and other details vary by state. Check with your state’s Licensing Office or Department of Revenue to make sure you get the right permits.

Sales Tax License

If you are selling taxable products and services, you must obtain a Sales Tax License. Note that sales tax differs from state to state, so you’ll need to check with your state to make sure you’re following their rules.

Note: Not sure where to get started? Check out the usa.gov website to find out contact info for your local government

Permits for selling online in the UK

If you’re planning on selling your fashion brand online in the United Kingdom, you’ll be pleased to hear that you don’t need a business license. In the UK, clothing is not a regulated space so you won’t need a specific license to sell it.

However, you must make sure that you register with HM Revenue & Customs no more than three months after you start trading. This is really important as the government needs to ensure that you’re paying the correct amount of tax!

Permits for selling online in the EU

The ease of doing business across countries in the European Union will give your brand access to a huge market of potential new customers.

As a business trading in Europe, you’ll benefit from the EU Single Market and the free movement of goods. This means that most goods, including clothing, can move freely within the EU without any extra costs or restrictions.

However, there’s a lot to consider when you want to register a business in the region. There are 27 countries in the EU and you’ll need to obtain the necessary licenses and permits in the country you’re registering in. We advise that you do your research on the pros and cons of registering your business in different European countries to find the best one that works for you. Then you can make sure you apply for the correct licenses and permits in that country. 

How BLANC can help make selling online easy and hassle-free

Although worthwhile, selling online directly to consumers requires that your business follows  all of the rules and regulations. Once all is set it is time to start selling via your e-commerce or social media channels. BLANC can help with shipping and stock management. Our D2C solution makes your brand competitive offering “next day delivery” and “returns” model that not all brands can offer (or afford) from the beginning. Contact our team and schedule a demo!