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General information, not legal or tax advice. Rules differ by state and locality; confirm with the agencies named below.
Short answer
Often yes, but not because you sell online. Whether you need a business license depends on what you sell and where your business operates. The SBA says most small businesses need a combination of federal and state licenses and permits, and local rules can apply too. A license is separate from a tax registration and from an EIN.
Definition and scope
Three different things get called a business license. A license or permit authorizes a regulated activity. A tax registration, such as a state sales tax permit, tells a state you will collect or pay its taxes. An EIN is a federal tax ID. Selling through a website changes where your customers are, not which of these apply. This page is for lab and medical supply sellers who want to know which registrations to check before they list products.
Business license for an online store: federal, state and local layers
The SBA describes licensing in layers. Federal licenses and permits apply to business activities regulated by a federal agency; its examples are alcohol, firearms and aviation. It adds that states tend to regulate a broader range of activities than the federal government, that county or city licenses may apply, and that zoning ordinances can still apply even to home-based businesses (SBA, Apply for licenses and permits, checked 2026-11-03).
| Layer | What the source says | Source |
|---|---|---|
| Federal license or permit | Needed for activities regulated by a federal agency | SBA |
| State | States tend to regulate a broader range of activities than the federal government | SBA |
| Local and zoning | County or city licenses may apply; zoning can apply to home-based businesses | SBA |
| State tax registration | The need for a state tax ID ties directly to whether the business must pay state taxes. Texas example: apply if you are engaged in business in Texas and sell or lease tangible personal property there | SBA; Texas Comptroller |
| EIN | Needed to manage taxes; listed triggers include hiring employees, operating as a partnership or corporation, and paying sales and excise taxes | IRS |
| FDA establishment registration | Applies to manufacture, preparation, propagation, compounding, assembly or processing of devices; carve-out in 807.20(c) only for a wholesale distributor as defined in 807.3(t) that does not manufacture, repackage, process or relabel | 21 CFR 807.20, 807.3(t) |
License vs tax registration vs EIN
The SBA treats state tax ID numbers separately from licenses. It says the need for a state tax ID ties directly to whether your business must pay state taxes, and that a federal tax ID is needed if the business, for example, pays employees or operates as a corporation or partnership (SBA, Get federal and state tax ID numbers, checked 2026-11-03). The IRS says businesses need an EIN to manage their taxes, and its online application is for domestic entities with a US main location where the applicant is the responsible party or an authorized representative with that party’s SSN or ITIN (IRS, last reviewed 16 October 2026). For a walkthrough, see how to get an EIN for a business.
The Texas Comptroller gives a concrete state example: apply for a sales tax permit if you are engaged in business in Texas and you sell or lease tangible personal property in Texas or sell taxable services (checked 2026-11-03). Other states set their own rules, so check your state agency. For how a seller’s permit differs from a resale certificate, see resale certificate vs seller’s permit for medical supply businesses.
Selling lab and medical supplies: does FDA registration apply?
Under 21 CFR 807.20(a), an owner or operator of an establishment engaged in the manufacture, preparation, propagation, compounding, assembly or processing of devices in commercial distribution registers and submits listing information, unless exempt under section 510(g). Under 807.20(c), registration and listing requirements do not pertain to a person who acts as a wholesale distributor and does not manufacture, repackage, process or relabel a device (Cornell LII, checked 2026-11-03). The term is defined in 21 CFR 807.3(t): a wholesale distributor is any person (other than the manufacturer or the initial importer) who distributes a device from the original place of manufacture to the person who makes the final delivery or sale of the device to the ultimate consumer or user (Cornell LII, 21 CFR 807.3, checked 2026-11-03). So 807.20(c) covers only persons who meet that definition and do not manufacture, repackage, process or relabel. The definition describes someone who distributes a device to the person who makes the final sale to the end user, so do not assume the carve-out covers an online store that sells to end users itself. Whether your own setup qualifies is a question for a regulatory professional. Related reading: what a medical supply wholesaler is and how to get a medical supply license.
Business license for reselling
The sources cited on this page do not list reselling as its own federal license. The relevant checks are the same layers above: state and local licensing, a state tax registration where you sell taxable goods, an EIN if a trigger applies, and, if you handle devices, whether FDA registration applies to your role (see the FDA section above). Suppliers often ask for tax documents before they open an account; see resale certificates for medical supply distributors, how to get a wholesale license and the vendor application form guide.
Documents to gather before you list products
- Your state’s sales tax or seller registration confirmation (state agency).
- Any state or local license your city or county requires (SBA says these may apply).
- Your EIN confirmation, if an IRS trigger applies.
- A note of whether you manufacture, repackage, process or relabel any device (21 CFR 807.20).
- Your zoning status if you operate from home (SBA).
Common misunderstandings
- “Online means no license.” The SBA’s licensing layers are based on the activity and location, and the sources cited on this page do not exempt online sellers.
- “A tax permit is a business license.” The SBA and the Texas Comptroller describe state tax registration as tied to paying state taxes or selling taxable property, a separate matter from an activity license.
- “An EIN is a license.” The IRS describes it as a number for managing taxes.
- “Resellers are automatically exempt from FDA registration.” 807.20(c) covers only a wholesale distributor as defined in 807.3(t) that does not manufacture, repackage, process or relabel; a seller making the final sale to the end user should not assume it applies.
FAQ
Do you need a business license to sell online?
Possibly. The SBA says most small businesses need a combination of federal and state licenses and permits, and local licenses and zoning may also apply. Selling online does not remove those checks. Confirm with your state and city agencies.
Do you need a business license for an online store?
The same layers apply as for any business: state and local licensing, state tax registration if you sell taxable goods, and an EIN if an IRS trigger applies.
Do you need a business license for reselling?
Reselling is not listed as a federal license trigger in the sources cited on this page. State tax registration and local rules are the usual checks. For medical devices, 21 CFR 807.20(c) covers only a wholesale distributor as defined in 807.3(t), meaning a person who distributes a device to the one who makes the final sale to the ultimate consumer, and who does not manufacture, repackage, process or relabel. An online store selling to end users should not assume it qualifies.
Sources
- SBA, Apply for licenses and permits, checked 2026-11-03.
- SBA, Get federal and state tax ID numbers, checked 2026-11-03.
- IRS, Apply for an EIN online, last reviewed 16 October 2026, checked 2026-11-03.
- 21 CFR 807.20 via Cornell LII, checked 2026-11-03.
- 21 CFR 807.3 (definitions) via Cornell LII, checked 2026-11-03.
- Texas Comptroller, Sales tax permit, checked 2026-11-03.
