How to Establish an Ecommerce Business in the USA?
E-commerce businesses are growing at an alarming rate across the world. The huge market exposure, amazing start-up ecosystem, best-in-service payment gateways and a lot of online buyers in the US makes the market aptest to start a business. As per Statista, e-commerce sales in the USA is estimated to cross the figure of 735 billion USD in 2023. The figure of e-commerce retail sales in 2018 amounted to 504.6 billion USD.
Such a quick growth rate of commerce businesses is enough motivation for business enthusiasts to get started. However, the idea of starting a business isn’t enough to bring profits. Building your e-commerce venture anywhere in the world involves creating the business plan, looking for investors, business registration, market analysis, building early marketing strategies, stocking and managing inventory and so on. When you build your e-commerce business in the USA, it will add certain tasks in your checklist.
· Name and register your business:
Organize your thoughts about the business on a piece of paper, put the theme of your business and name it. The name of your business can be product-based or branding based. Just keep the name that is simple to remember and connects with your business. The trademark name and the brand name for your business need not be the same.
Now, check for the registration process and documents required by the government bodies of your region. You can register your business as a sole proprietor, partnership firm, LLC or the corporation. The company registration type depends upon your business architecture. If you are an individual running the business, your firm will be registered as a sole proprietor. If you are opening a business in the partnership, it can be a partnership or LLC. When you register your business with greater than 50 employees, you can go ahead with corporation registration.
· Get your EIN & business licenses:
EIN is the Employer Identification Number. In the US, it is a must-have for opening a business account of your firm. Using the same account you can pay off your taxes in the next year. EIN can be considered as holding the same values as that of your Social Security Number. If you are selling the goods from your location, EIN is compulsory to run your business. If you don't have the staff and running your business individually, then to you will need EIN for business.
In addition to EIN, a business license can be required for selling certain products in your location. The product category that needs licensing varies from region to region. So, you need to check with your local bodies before getting started with selling the goods online.
· Evaluate the Sales Taxes
The Sales tax rules vary from country to country. The USA follows a distinct tax pattern, in which businesses are charged taxes based upon their connection or nexus with the state/country.
Earlier nexus was counted as a physical presence of your store in the countries. After June 2018, the taxation rules were revised because of online sellers. Now, the taxes are evaluated based on destination location as well as the origin location. If the origin and the destination are not connected in any way but the business has nexus with the state of that place, then origin-based rules will be applied. If you want to make the most out of your business, you must be well aware of the taxes to applied and never miss on the dates of paying them.
· Check for the payment gateway benefits:
PayPal being the renowned payment gateway is the choice for many businesses to get paid for their orders from across the world. However, there are many other successful and secure payment gateways and the shipping providers you can count on. If you want to get benefited at large you must be aware of the rules applicable within your region. This helps you in building your shipping, payment and return policies; they can be equally favorable for you and your customers.
Now, you are ready to explore more about scoping the information to get your business online. You can startup with ecommerce platforms like Builderfly for your ecommerce website and native mobile apps. Such platforms let's you to manage your business efficiently and that also at no cost to startup.