Ongoing Compliance Requirements for E-Commerce Businesses in the US

What truly determines your long-term success isn’t just formation, it’s ongoing compliance.

In simple terms, knowing and understanding the ongoing compliance requirements for e-commerce businesses in the US means keeping your business legally active, financially responsible, and in good standing after formation. 

Unfortunately, this is where many e-commerce founders drop the ball. The startup energy fades, and the legal complexity grows.

Before they know it, they’ve missed a filing deadline, skipped a license renewal, or triggered penalties they didn’t even know existed. We’re talking about:

• Fines and late fees that pile up fast

• Loss of your company’s “good standing” status

• Being shut out of marketplaces like Amazon or Stripe

• And in some states, automatic dissolution of your LLC or corporation

If it all sounds overwhelming, don’t worry. doola’s Formation & Compliance solutions help e-commerce founders stay compliant year-round.

We handle filings, reports, alerts, and more, so you can focus on growing your store, not chasing deadlines.

But first, let’s break down everything you need to know post-formation, from compliance basics to advanced tips and overlooked requirements. 

Why Ongoing Compliance Matters for E-Commerce Businesses

Even having the most beautifully branded Shopify store or top-rated Amazon listing won’t protect you from the silent killer of growth: non-compliance.

Failing to meet ongoing legal obligations can hurt your business in more ways than you think. Here’s how:

Legal & Financial Penalties

Each state has its own rules and deadlines, and if you miss even one, you could face hundreds or even thousands of dollars in late fees. 

If you let it slide for too long, the state could administratively dissolve your business, which means your company legally ceases to exist.

Marketplace Lockouts

Major platforms like Amazon, Stripe, and PayPal regularly audit sellers for compliance. If they detect something wrong, they can freeze your payouts or suspend your account entirely.

For example, a California-based online skincare brand lost over $22,000 in Q4 revenue after Amazon temporarily delisted them for failing to update their business license info.

Reputation & Trust

Customers and investors alike want to know you’re running a legitimate, well-managed business. 

If your company loses its good standing or has legal issues on record, it can undermine buyer confidence and tank opportunities for funding, partnerships, or future exits.

Compliance Fuels Growth

The businesses that scale successfully aren’t just the ones that sell more. They’re the ones built on a solid foundation. 

Clean compliance unlocks everything from faster payment approvals to easier access to credit, investment, and brand partnerships.

Let doola handle it all for you. From annual filings to registered agent services and new federal rules, we help you stay compliant and stress-free.

Common Ongoing Compliance Requirements (by Business Type and State)

Once your e-commerce business is formed, staying compliant isn’t a one-time task. It’s a recurring responsibility.

Let’s break down the key requirements you need to stay on top of:

Annual Reports & State Filings

Most U.S. states require LLCs and corporations to file annual or biennial reports to confirm business details like your address, registered agent, and ownership structure. 

These filings keep your company in “good standing” and are usually due on the anniversary of your formation.

Mini-Table: Key State Annual Report Requirements

Federal & State Taxes

At the federal level, your business needs an Employer Identification Number (EIN) from the IRS to file taxes and open accounts.

But that isn’t the only tax obligation you have to worry about. For state taxes, compliance gets more complex:

You must register for sales Tax in a state where you have triggered a nexus (a connection). If you sell online in multiple states, you’re legally required to register, collect, and remit sales tax in those states.

Nexus can be created by physical presence (like storing inventory in an Amazon FBA warehouse) or economic presence (e.g., selling over $100,000 annually to customers in that state).

There’s also franchise tax and quarterly filings, which every e-commerce business must file to avoid penalties.

Registered Agent Services

Every U.S. state requires you to designate one, and using your home address (especially if you’re international) usually isn’t allowed.

This is not a role you want to skip. If your business is sued and you don’t respond because you missed the paperwork, you could lose the case by default.

doola compliance plan includes Registered Agent services in all 50 states, so you never miss a notice and stay protected year-round.

Business Licenses & Permits

Many founders assume forming an LLC is enough. In reality, you may need specific business licenses or permits depending on what you sell, where you sell, and how you sell.

For example, California has environmental and recycling fees for electronics. Florida requires e-commerce stores selling goods to register for a seller’s permit.

Start with your Secretary of State website or use doola’s eBook library for state-by-state license checklists.

How Compliance Differs for LLCs vs. Corporations

Not all business entities are created equal, especially when it comes to ongoing compliance. 

While LLCs are generally more flexible, Corporations come with stricter formalities that many founders overlook.

Let’s break down the key differences:

Since both of these structures are entirely different, doola’s compliance support adapts to your situation.

LLC founder? We’ll handle your state reports, sales tax registration, and more.

Running a Corporation? We’ll remind you of shareholder filing deadlines, help track board minutes, and ensure your business maintains proper governance.

One platform. Zero guesswork. Full protection.

Hidden Compliance Traps E-Commerce Founders Often Miss

Skipping even a minor requirement can snowball into fines, missed revenue opportunities, or even state-imposed dissolution.

Here are some of the most common (and costly) compliance traps e-commerce entrepreneurs miss:

Neglecting to Renew Domain Licenses or Business Permits

It sounds basic, but forgetting to renew your website domain can take your store offline overnight. 

Likewise, local business permits and seller’s licenses often have expiration dates. If you miss a renewal, you may be operating illegally without even realizing it.

Not Updating Your Business Address or Ownership Info

Moved to a new office? Changed ownership or added a partner? Most states require you to update your business information promptly. 

Failure to do so can lead to missed legal mailings/notices, lost good standing, or rejection of essential filings.

Overlooking Privacy Policy and ADA Website Compliance

If your store collects customer data or sells to California residents, you may be legally required to include a privacy policy under CCPA. 

And if your website isn’t accessible to people with disabilities (per the ADA), you could face lawsuits, especially in states like New York and California, where enforcement is stricter.

Failing to Collect or Remit Sales Tax Correctly on New Platforms

Adding a new sales channel like Etsy, Shopify, or Amazon? Each platform has different tax collection rules, and each sale can trigger new nexus obligations in different states. 

If you don’t register, collect, and remit properly, you’re opening the door to audits and penalties.

Poor Bookkeeping Habits

Inconsistent or inaccurate bookkeeping leads to chaos at tax time and triggers IRS scrutiny. 

Beyond taxes, messy records make it harder to understand your profit margins, secure funding, or sell your business down the road.

Missing just one of these? You’re not alone, and you don’t have to do it all yourself. Here’s a quick checklist to help you stay ahead:

• Double-check upcoming license, permit, and domain renewals

• Confirm that business address and ownership records are current with your state

• Audit your active sales platforms for tax collection accuracy

• Review your privacy policy and accessibility settings

• Reconcile bookkeeping and file transaction data properly

How to Stay Organized & Never Miss a Compliance Deadline

It’s easy to get caught up in product launches, inventory restocks, or new marketing campaigns, and forget about the silent threat lurking in the background: compliance deadlines.

Here’s how you can stay ahead:

Use a Compliance Calendar

A simple but powerful tool. Set calendar reminders for key filing deadlines for quarterly tax submissions, annual reports, permit renewals, and more. 

Use tools like Google Calendar to create recurring alerts so nothing slips through the cracks.

Also, color-code your compliance deadlines separately from marketing and operations to keep them top of mind.

Add Compliance Checks to Your Quarterly Business Reviews

Treat compliance like any other business metric. Every 3 months, schedule time to review:

• Business licenses and permit statuses

• State and federal tax filings

• Sales tax nexus triggers across new markets

• Business info changes that need reporting

Integrating compliance into your regular review process ensures you’re proactive, not reactive. However, there’s an even easier way to stay compliant: automation. 

doola’s Formation & Compliance service is designed to take this burden off your plate entirely. With doola, you get:

• Automatic compliance reminders and filings

• Registered agent service in all 50 states

• Real-time tracking of your business’s good standing

• Ongoing compliance customized to your entity type and state

We monitor deadlines, file on time, and keep your business in good standing, so you can focus on growing your e-commerce brand.

Don’t wait for a compliance notice to realize you missed something. View our pricing to see how easy compliance can be.

How doola Can Help You Stay Compliant Year-Round

Running an e-commerce business is hard enough; managing compliance on top of that shouldn’t be a full-time job. That’s where doola’s Compliance services comes in.

We built our solution to make ongoing compliance stress-free, automatic, and affordable for founders around the world.

Whether you’re managing a Shopify store from abroad or scaling a U.S. brand from home, we handle the filings, forms, and fine print so you don’t have to.

You get:

• Registered Agent Service

• Annual Compliance Filings

• Good Standing Monitoring

• Ongoing Support from our Compliance Team

Let us keep your business legally protected, tax-ready, and in good standing all year long.

Schedule a free demo to learn how doola can take care of compliance for you.

FAQs

Do I need a registered agent if I work from home?

Yes. Every U.S. LLC or corporation is legally required to designate a registered agent, regardless of whether you work from home, run an online store, or live outside the U.S.

How often do I need to file taxes for my e-commerce business?

It depends on your business structure and where you operate. Federal income taxes are filed annually, state income or franchise taxes may be annual or quarterly, and sales tax filing depends on your volume and nexus rules.

Can I handle compliance myself, or should I use a service like doola?

Many founders find that it’s not worth the risk or time. One missed deadline can lead to penalties, loss of good standing, or even business dissolution.

That’s why doola exists: to automate, manage, and simplify compliance so you can stay focused on growing your business.

How does compliance impact my ability to get funding or sell my business?

When seeking funding or preparing to sell, investors and buyers will review your compliance history.

Maintaining good standing with the state, staying on top of taxes, and keeping accurate records signals that your business is trustworthy and professionally managed.