Private members-only forum

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

Started by ecomm_starter_p · May 2, 2026 · 134 views · 3 replies
For informational purposes only. This is not legal advice. Laws vary by jurisdiction. Consult a qualified attorney for advice specific to your situation.
EC
ecomm_starter_pOP

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?

CP
cpa_off_duty

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.

RE
reno2025

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.

CN
cynthia_h

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.