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What permits does your online business need?

On Behalf of | Sep 27, 2021 | Business Formation, Business Law

You have everything ready to get your online business up and running. You created a product or service, designed a fantastic website and have excellent social media marketing skills.

You are ready to start making money from home. Or are you? Before you begin, there may be a few more steps. Do you have the correct permits and licenses required by Texas law?

Local permits

Depending on the county or city you reside in, you may need to acquire a home occupational permit in addition to other licenses required by regulatory agencies. The statutes and requirements differ throughout Texas and are specific to your area.

Seller’s permits

The state considers digital sales taxable commerce. If you plan to sell goods with your Texas-based online company, you must obtain a seller’s permit. To file for this license, you will need:

  • The legal name of your business
  • Your Social Security number or employer identification number
  • The company’s taxpayer identification number
  • The business address

Tax permits

If you sell taxable services or items online, you need a Texas sales and use tax permit. This statute applies regardless of your formal business structure.

Local restrictions

Your city or county may restrict certain business activities for a home-based business. For example, if your online company sells products and ships them, the state laws may limit how often shipments occur.

Operating an online business can be a rewarding venture. It is crucial to have a thorough understanding of your area’s laws and regulations for your specific industry to avoid potential legal problems down the road.