This is the permit that affects the widest swath of online businesses, so let's start here.

If you sell physical goods online, you almost certainly need a seller's permit (sometimes called a sales tax permit or sales tax license) in your home state, and potentially in other states where you have a tax "nexus." A nexus is a significant connection to a state that creates a tax obligation — historically this meant a physical presence, but the 2018 South Dakota v. Wayfair Supreme Court ruling opened the door for states to impose sales tax obligations based on economic activity alone.

As of 2025, virtually every state with a sales tax has enacted economic nexus laws. Most use a threshold of either $100,000 in annual sales or 200 separate transactions in the state in a 12- month period — though thresholds vary. Once you cross those thresholds in a state, you're required to register for a sales tax permit and begin collecting and remitting sales tax on sales to customers in that state.

This is not optional and it's not a small-business exemption. States have been actively auditing online sellers since the Wayfair decision, and back taxes, penalties, and interest can be substantial.

How to get it: Register with your home state's Department of Revenue first, then track sales by state. Platforms like Avalara, TaxJar, or TaxVault can automate nexus tracking and filings if you're selling in multiple states.

Digital products: Many states now tax digital products — software, ebooks, online courses, and subscriptions. The rules differ by state and product type. Texas taxes most digital products.

California generally doesn't tax digital goods. This requires its own research if you sell digital products.

Food entrepreneurship has exploded in the era of solopreneurship — homemade baked goods, specialty sauces, meal prep, catering. The regulatory picture here is more complex than most food entrepreneurs realize.

Cottage food laws govern the sale of homemade food products and vary significantly by state. Most states permit the sale of certain "non-potentially-hazardous" foods (items that don't require refrigeration, like baked goods, jams, and candies) made in home kitchens, but with restrictions. Some states cap annual revenue from cottage food sales. Others restrict online sales, requiring direct sale at farmers markets or similar venues. A handful of states have more permissive laws that allow online orders and third-party delivery.

Before selling any food product online, you need to:

Research your state's specific cottage food laws Determine whether your product qualifies as cottage food or requires a licensed commercial kitchen Check whether online sales are permitted under your state's law Determine if labeling requirements apply (most states require specific label disclosures on cottage food products) If your product doesn't qualify for cottage food exemption — because it requires refrigeration, contains meat, or exceeds revenue caps — you'll need to produce it in a licensed commercial kitchen and potentially obtain a food handler's permit or food facility license.

The FDA also has jurisdiction over certain food products sold across state lines, particularly those regulated as "foods for special dietary use" or that make health claims. The Federal Food, Drug, and Cosmetic Act requirements for labeling, safety, and facility registration can apply to small online food sellers.

Selling alcohol online is one of the most heavily regulated areas of online commerce. There is no pathway to selling alcohol — wine, beer, spirits, or anything in between — without navigating both federal and state licensing.

At the federal level, the Alcohol and Tobacco Tax and Trade Bureau (TTB) regulates alcohol producers, importers, and wholesalers. If you're producing alcohol (a winery, brewery, or distillery), you need a federal Brewer's Notice, Winery Basic Permit, or Distilled Spirits Plant (DSP) permit from the TTB.

State licensing is layered on top of federal requirements, and every state has different laws governing who can sell, ship, and distribute alcohol. Some states permit direct-to-consumer wine shipping from out-of-state wineries; others do not. Most states require retailer licenses for anyone selling alcohol to consumers. If you're operating an online alcohol marketplace, subscription wine club, or alcohol delivery service, you need to map out your state-by-state compliance requirements carefully.

This is an area where working with a beverage alcohol attorney is genuinely worthwhile given the complexity and the severity of violations.

If your online business sells dietary supplements — vitamins, minerals, herbs, protein powders, or similar products — FDA regulation applies.

Supplement manufacturers must comply with the FDA's Dietary Supplement Current Good Manufacturing Practices (CGMPs), found in 21 CFR Part 111. These are detailed quality control requirements covering facility conditions, testing, record-keeping, and employee training.

Facilities that manufacture, process, pack, or hold food (including supplements) for commercial distribution in the U.S. must register with the FDA under the Bioterrorism Act, now codified in the Food Safety Modernization Act (FSMA). This registration must be renewed every two years.

Critically: the FDA does not "approve" dietary supplements before they go to market the way it approves drugs. But the agency actively enforces against products that make unsubstantiated drug claims, contain prohibited ingredients, or are manufactured in facilities that don't comply with CGMP standards. The FTC also has jurisdiction over advertising claims for supplements.

If you're dropshipping supplements manufactured by a third party, the manufacturer's compliance obligations are primarily theirs — but you still have responsibility for the claims made in your marketing.

The Modernization of Cosmetics Regulation Act of 2022 (MoCRA), which took effect in phases through 2024 and 2025, significantly updated FDA authority over cosmetics in the United States for the first time in decades.

Under MoCRA, cosmetics facilities that manufacture or process cosmetics for U.S. distribution are now required to register with the FDA and pay associated fees. Small businesses (with annual sales under $1 million) have some exemptions from facility registration requirements but must still comply with safety substantiation, labeling, and adverse event reporting requirements.

If you're creating and selling skincare products, makeup, or hair care items online, you need to understand whether MoCRA's facility registration requirement applies to your situation. Products manufactured at a contract manufacturer are registered by the manufacturer; if you're making products yourself, you may need to register directly.

The FDA's MoCRA guidance documents, updated through 2025, are the authoritative source for current requirements.

Online businesses offering financial products face some of the most complex multi-layered regulatory environments in the U.S. commerce landscape.

Money transmission: If your online business facilitates the transfer of funds — whether you're operating a peer-to-peer payment platform, a marketplace that holds customer funds, or a business that transmits money on behalf of customers — you may be subject to state money transmitter licensing requirements. Money transmitter laws exist in 49 states plus D.C., and compliance requires separate licensing in each state where you operate. This is a significant undertaking; many startups in this space work with specialized licensing firms.

Mortgage and lending: Online mortgage originators, personal loan platforms, and similar businesses must comply with federal regulations including the Truth in Lending Act (TILA), and typically need individual state lending licenses through the Nationwide Multistate Licensing System (NMLS).

Insurance: Selling insurance online — including through comparison sites where you earn referral commissions — typically requires a state insurance producer license in each state where you're doing business. The requirements vary but generally involve pre-licensing education, a state exam, and background checks.

Here's something that catches a lot of solopreneurs off guard: delivering a professional service online doesn't remove the licensing requirement that applies when delivering it in person.

A licensed psychologist who provides teletherapy to clients in multiple states may need licensure in each state where their clients are located, not just where the therapist lives. Many states have enacted interstate compacts for specific professions — the PSYPACT compact for psychologists, the Nurse Licensure Compact (NLC) for nurses — that allow licensed professionals to practice across member states under a single authorization. But these compacts don't cover every profession, and they don't cover every state.

If you provide licensed professional services online — therapy, counseling, speech-language pathology, occupational therapy, and others — check whether your profession has an interstate compact and which states have joined.

Rather than approaching this as a one-time research exercise, treat permit compliance as an ongoing business function. Industries change. Regulations evolve. Thresholds shift. A sales volume that didn't trigger nexus last year might trigger it this year.

Here's a practical approach:

1. Identify your business category. What do you actually sell or do? Be specific — "online store" isn't specific enough. "Online store selling homemade soy candles shipped nationwide" is.
2. Map the regulatory layers. Federal requirements, state requirements in your home state, and potentially state requirements in other states where you exceed sales thresholds. 3. Research your specific requirements. The SBA's license and permit lookup, your state's Secretary of State or Department of Revenue, and the relevant federal agency (FDA, TTB, FTC, etc.) are your primary sources. 4. Consult a professional for complex areas. For anything involving securities, money transmission, alcohol, or multi-state professional licensing, the cost of legal consultation is small compared to the cost of non-compliance. 5. Set calendar reminders. Many permits require annual renewal. Many regulatory thresholds reset annually. Build in time to review your compliance status each year. The permits that apply to your online business are out there, clearly documented, and obtainable. The only way they become a problem is if you ignore them.

Ready to get started? Identify the single most important regulatory category for your business type and spend 30 minutes today researching your specific state's requirements. That first hour of research is the difference between a business built on a solid foundation and one that's perpetually playing catch-up.

Start with whether you need a basic business license at all, then layer on sales tax registration where you have nexus, and professional licensing if your service touches a regulated field.