Legal Question in Business Law in Maryland
I would like to start selling homemade bath soaps online? Do I need a business license?
2 Answers from Attorneys
As a Franchise Attorney I can say this. Whenever you start any business, you need a business license at a minimum. This is fairly easy to obtain and usually through your City Hall. It doesn't matter that the business is online; the critical issue is where is the hand that clicks the mouse. Consult with a good business or franchise attorney in your area for specific advice.
Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.
Franchise Foundations, a Professional Corporation
Hello. I am a Maryland barred attorney - starting a new manufacturing / retail business is exciting but involves a bit of front-end planning. You'll need a sales and use tax account and a traders license among other things. A critical question is whether you want to run your business through an entity to insulate yourself from liability. A sole proprietor can register a trade name in this state but that will offer no protection from consumer claims. If you plan on hiring any employees (even part-time) the law requires additional registration.
You may also need to comply with FDA and other rules regarding labeling and sales of certain cosmetics (soaps may fall under the rules in some cases). Depending on the county where you are located your business may need to register to operate out of a home.
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