online business — do I need a license in every state I sell to?

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Illustrative scenario prepared by my practice.
For informational purposes only. This is not legal advice. Laws vary by jurisdiction. Consult a qualified attorney for advice specific to your situation.
Hypothetical question

shopify store, sell home goods. based in IL. sales nationwide. starting to hit the sales tax economic nexus thresholds. do i need to register and collect/remit in each state? do i also need a "business license" in each state?

Illustrative response

sales tax registration: yes for any state where you exceed economic nexus thresholds (typically $100k or 200 transactions). no general "business license" required just to sell into a state — local licensing is for physical operations.

shopify + taxjar/avalara handles the registrations and filings for ~$50/month. cheap insurance.

Illustrative response

also: home rule cities (chicago, NYC, etc) have their own sales tax on top of state. additional registration there if you ship into them frequently.

Illustrative response

if you have inventory in fulfillment centers (FBA, etc), that creates physical nexus. that's a separate trigger from economic nexus and applies even at low sales volume.