USA compliance for ecommerce brands
USA compliance for ecommerce brands
USA compliance for ecommerce brands
High-level findings (actionable points for ecommerce owners and LLC founders): 1) Sales tax & nexus: Economic nexus rules (post-Wayfair) require remote sellers to register, collect, and remit when they exceed state thresholds (most commonly $100,000 in sales or a transactions threshold; a few states use $500,000 or other amounts).
States vary in lookback period and whether marketplace sales count toward a seller’s threshold. Marketplace facilitator laws typically require marketplaces (Amazon, Etsy, Walmart, etc.) to collect and remit for facilitated sales, but sellers remain responsible for sales outside marketplaces and should monitor whether marketplace activity still creates registration obligations.
Use authoritative state-by-state charts and automate with trusted providers (Avalara, TaxJar, Tax automation services) to track thresholds, local rates, and product taxability. 2) Business formation, registration & BOI: Forming an LLC still recommended for liability protection; maintain registered agent, operating agreement, and required state filings.
FinCEN BOI: Starting in 2026 new LLCs must file a Beneficial Ownership Information report within 90 days of formation (identify individuals who own or control the company). Confirm filing obligations and deadlines.
High-level findings (actionable points for ecommerce owners and LLC founders): 1) Sales tax & nexus: Economic nexus rules (post-Wayfair) require remote sellers to register, collect, and remit when they exceed state thresholds (most commonly $100,000 in sales or a transactions threshold; a few states use $500,000 or other amounts).
States vary in lookback period and whether marketplace sales count toward a seller’s threshold. Marketplace facilitator laws typically require marketplaces (Amazon, Etsy, Walmart, etc.) to collect and remit for facilitated sales, but sellers remain responsible for sales outside marketplaces and should monitor whether marketplace activity still creates registration obligations.
Use authoritative state-by-state charts and automate with trusted providers (Avalara, TaxJar, Tax automation services) to track thresholds, local rates, and product taxability. 2) Business formation, registration & BOI: Forming an LLC still recommended for liability protection; maintain registered agent, operating agreement, and required state filings.
FinCEN BOI: Starting in 2026 new LLCs must file a Beneficial Ownership Information report within 90 days of formation (identify individuals who own or control the company). Confirm filing obligations and deadlines.
Licenses & permits
Federal permits for regulated products (FDA registration for food, cosmetics, medical devices, FCC for RF devices, ATF for firearms, etc.). State and local seller/home-business licenses and sales/ seller permits vary by jurisdiction—check the Secretary of State and local city/county.
Consumer protection & advertising
FTC rules enforce truth-in-advertising, influencer disclosures, and telemarketing rules. The INFORM Consumers Act affects marketplace transparency and verification requirements. Ensure accurate product claims (especially for health/supplement/cosmetics), clear refund/returns, shipping timelines, and subscription cancellation flows.
Data privacy & security
No single federal privacy law yet; states continue to pass consumer privacy laws (CA/CPRA, VA, CO, CT, UT, and others). Regulators now expect honoring universal opt-out signals (GPC) and functional consent/opt-out mechanisms. Maintain a clear privacy policy, Data Subject Request processes, and cookie/consent tooling. If you accept card payments, maintain PCI DSS compliance. Prepare for breach-notification obligations (federal and state rules vary).
Product safety & regulated goods
FDA regulates food, supplements, cosmetics, and medical devices (labeling, registration, claims). CPSC and CPSIA regulate consumer & children’s products (testing, General Certificate of Conformity). Shipping hazardous materials requires compliance with carrier and DOT/IATA rules.
ADA website accessibility
Websites should implement accessibility best practices (alt text, semantic headings, labeled forms, keyboard navigation) and consider remediation and monitoring to reduce litigation risk.
Shipping, returns & international compliance
Follow USPS/FedEx/UPS restricted items lists, customs/CBP guidance for imports/exports, accurate HS codes and product descriptions, and correct labeling (country of origin, dangerous goods marking).
Unclaimed property / escheat
States require escheat reporting of unclaimed customer property (gift cards, refunds). Rules and dormancy periods vary—use NAUPA/state unclaimed property offices to track obligations. Practical next steps & checklist (minimum recommended actions): Immediately: run a 12-month sales-by-state review to identify nexus; register where thresholds are exceeded; confirm marketplace reporting/collection status. Legal formation: ensure LLC filings, registered agent, and file BOI with FinCEN for new entities. Policies: publish/update Terms, Privacy Policy (DSR process), Refunds/Shipping/Returns, and ADA/accessibility statement. Security & payments: confirm PCI DSS compliance, enable HTTPS, implement breach response plan, and use tokenized payment processors. Product compliance: verify FDA/CPSC certifications, labeling, and testing for regulated items; ensure hazardous materials classification for shipping. Tax automation & recordkeeping: integrate Avalara/TaxJar/other automation to calculate tax at checkout and retain records for audits; review unclaimed property processes annually.
Enjoyed this article?
Subscribe to our newsletter for more expert insights on compliance and business formation.