Opening an online store in the United States comes down to ten tasks, from checking local permits to placing a test order. Some cost $0 and take minutes, like getting an EIN from the IRS. Others cost money or wait on a bank or a platform review. This checklist walks through what to do in the right order, breaks down the first-month launch budget for two typical founders, and outlines the shipping and tax deadlines you must meet.
Worked example: launch budget for two first-time stores
These two hypothetical stores show what launching actually costs in month one and across year one. Both use list prices checked on 2026-10-03, obtain their federal tax ID for free, and use built-in card processing rather than add-on apps.
Store A: a candle maker on Shopify Basic. This founder sells hand-poured candles. Shopify Basic is $29 a month on yearly billing ($348 upfront for 12 months) or $39 billed monthly. We budget $19.99 for a .com domain, which is Hostinger’s standard yearly renewal price (first-year promotions can be lower; Namecheap renews at $15.88 to $18.68 plus a $0.20 ICANN fee). The default myshopify.com address is $0. We assume $150.00 in candle supplies as starting inventory.
| Item | Monthly billing route | Yearly billing route |
|---|---|---|
| Platform plan | $39.00 (month 1) | $348.00 (12 months upfront) |
| Federal EIN (irs.gov) | $0.00 | $0.00 |
| Custom domain (.com) | $19.99 (annual registration) | $19.99 (annual registration) |
| Initial supplies (hypothetical) | $150.00 | $150.00 |
| First-month cash outlay | $208.99 | $517.99 |
On monthly billing, upfront software and domain costs are $39.00 plus $19.99 = $58.99, or $208.99 with supplies. On yearly billing, paying $348.00 upfront for Shopify Basic ($29 × 12 = $348.00) plus $19.99 for a domain and $150.00 in supplies brings month one to $517.99.
Over 12 months, paying monthly costs $39 × 12 = $468.00 for the plan. Yearly billing costs $348.00, saving $120.00 ($468.00 - $348.00 = $120.00). Total year-one software and domain costs are $367.99 on yearly billing ($348.00 + $19.99 = $367.99) versus $487.99 on monthly billing ($468.00 + $19.99 = $487.99).
Store B: a photographer on Squarespace Basic. This founder sells prints and photo sessions. Squarespace Basic is $19 a month on yearly billing ($228 upfront for 12 months) or $25 billed monthly. Annual plans include one year of free domain registration ($0), whereas monthly billing requires buying the domain separately ($19.99). We assume $75.00 for sample portfolio prints.
| Item | Monthly billing route | Yearly billing route |
|---|---|---|
| Platform plan | $25.00 (month 1) | $228.00 (12 months upfront) |
| Federal EIN (irs.gov) | $0.00 | $0.00 |
| Custom domain (.com) | $19.99 (annual registration) | $0.00 (included free year 1) |
| Sample prints (hypothetical) | $75.00 | $75.00 |
| First-month cash outlay | $119.99 | $303.00 |
On monthly billing, month one software and domain costs are $25.00 + $19.99 = $44.99 ($119.99 with prints). On yearly billing, paying $228.00 upfront for Squarespace Basic ($19 × 12 = $228.00) includes the domain free ($0), totaling $303.00 with prints.
Over 12 months, paying monthly costs $25 × 12 = $300.00 plus $19.99 for the domain, totaling $319.99. Yearly billing costs $228.00 total, saving $91.99 ($319.99 - $228.00 = $91.99). However, Squarespace Basic charges a 2% online store fee on sales. Above $500 a month in sales ($6,000 a year), that 2% fee exceeds the $10 monthly gap between Basic ($19) and Core ($29) because $500 × 2% = $10.00. Above $500 a month, Squarespace Core ($29/month yearly, 0% store fee) is cheaper than Basic.
Run it with your own numbers: Cash required to launch = platform plan + domain registration + initial supplies + local permits. After launch, card processing takes 2.9% + 30¢ per domestic transaction. Use the profit per order calculator to calculate what each sale leaves you after card fees and shipping, and see the monthly cost guide for ongoing costs.
Step 1: Check licenses and permits
Start with your products and location. The SBA notes that required state, county, and city permits depend on your business activities and physical base. Note permit expiration dates so you can renew on time. Activities regulated by a federal agency (such as alcohol, tobacco, or firearms) require federal licenses before you trade. USAGov confirms there are no federal grants for starting a business, so plan your own budget before buying tools.
Step 2: Choose and register your business name
Pick a name that fits your brand and does not clash with existing businesses. The SBA lists four registration routes: an entity name at the state level (LLC or corporation), a federal trademark through the USPTO, a DBA (trade name), and a domain name. Registering a DBA gives no legal protection by itself, though most states require filing one if you trade under a name other than your own. See business basics for a US online store.
Step 3: Get a free EIN from the IRS
An Employer Identification Number (EIN) is a federal nine-digit tax ID. You need one if you have employees, pay excise taxes, or form an LLC, partnership, or corporation. Sole proprietors without staff can also request one for banking. Applying at irs.gov takes minutes and costs $0. The IRS limits online applications to one EIN per day per responsible party. Avoid third-party sites that charge fees for this free form.
Step 4: Open a business bank account
Open a dedicated business account once you accept or spend business money. The SBA notes that business banking offers limited personal liability protection by separating business funds from personal money. Banks typically ask for an EIN or Social Security number, business formation paperwork, ownership agreements, and your business license. Keeping accounts separate simplifies bookkeeping and protects personal assets.
Step 5: Set up your custom domain
A custom domain builds trust. You can keep the default myshopify.com address for free, or connect a custom name. Squarespace includes one year of free domain registration on annual plans. If buying separately, Hostinger renews standard .com domains at $19.99 a year, while Namecheap renews between $15.88 and $18.68 plus $0.20 ICANN fee. Point Shopify DNS records by setting the root A record to 23.227.38.65 and www CNAME to shops.myshopify.com. See our domain and business email guide.
Step 6: Pick your store platform
Pick the tool built for how you sell:
- Shopify: Best for physical product retail. Shopify Basic is $29 a month yearly ($39 monthly) and includes unlimited products, abandoned checkout recovery, automated sales tax calculation, and fraud analysis.
- Squarespace: Best when your site combines a portfolio, appointments, and a shop. Squarespace Basic is $19 a month yearly ($25 monthly) and Core is $29 ($39 monthly).
- Wix: Useful if you want to build pages and list products for free before upgrading to accept payments.
Compare choices in how to choose an online store platform and Shopify vs Squarespace vs Wix.
Step 7: Set up built-in card payments
Use your platform’s integrated payments (Shopify Payments or Squarespace Payments) to avoid outside gateway fees. Standard domestic card processing starts at 2.9% + 30¢. If you use an outside provider on Shopify, Shopify charges an extra third-party fee of 2% on Basic, 1% on Grow, and 0.6% on Advanced. On Squarespace, Basic charges a 2% store fee, while Core charges 0%. Shopify Payments US payouts settle in 3 business days (plus 1 to 3 days to your bank); Stripe takes 2 business days, with first payouts taking 7 to 14 days. Read online payments, fees and chargebacks.
Step 8: Configure shipping rates and sales tax
Under the FTC Mail, Internet, or Telephone Order Merchandise Rule, if you state no shipping timeframe you must have a reasonable basis to ship within 30 days of receiving a completed order. If delayed, you must send a notice offering the buyer a revised date or a full refund. For taxes, configure destination rates in your dashboard. Platforms automate tax calculations, but Shopify advises consulting a tax professional to ensure state filings and remittances are accurate.
Step 9: Publish clear store policies
Shopify provides templates for return, privacy, shipping, terms of service, and subscription policies under Settings > Policies. However, Shopify notes you are responsible for following published policies. CalOPPA requires commercial sites collecting personal data from California residents to post a conspicuous privacy policy covering data sharing, while the GDPR governs European visitors. State clear return windows and shipping terms, and promise only what you deliver. See legal pages and policies for an online store.
Step 10: Place a test order and launch
Before removing the storefront password, run final checks: confirm your business address, test shipping rates, verify tax calculation, check links to return and privacy policies, and verify your domain SSL certificate. Place a live test purchase with your own card. Confirm the charge processes at 2.9% + 30¢, receipt emails arrive, and inventory updates. Refund the test order, remove the password, and open your doors.
What changes for stores in the UK, Canada and Australia
Selling internationally introduces local tax thresholds:
- United Kingdom: You must register for VAT with HMRC if taxable turnover exceeds £90,000 over 12 months (voluntary below that). Sole traders register for Self Assessment when gross income passes £1,000 in a tax year. UK distance selling rules give buyers 14 days after delivery to cancel without reason, with a 30-day delivery default.
- Canada: The CRA requires GST/HST registration once taxable sales exceed the small supplier threshold of $30,000 CAD over four consecutive calendar quarters.
- Australia: You must register for GST with the ATO if turnover reaches $75,000 AUD, within 21 days of knowing you will reach it. Consumer guarantees cannot be excluded by store policies.
Who should pick something else
- Fewer than 10 orders a month: A marketplace like Etsy or Amazon lets you avoid paying fixed $29 or $39 monthly subscriptions while you test demand. Read sell on Etsy, Amazon or your own store.
- Existing WordPress owners: Add the free WooCommerce plugin to your existing hosting instead of buying a new builder subscription. See Shopify vs WooCommerce.
- In-person only sellers: A mobile card reader without an online store avoids recurring software subscriptions.
Common mistakes to avoid
- Paying for an EIN: The IRS issues EINs for free at irs.gov. Never pay commercial services for it.
- Treating a DBA as legal protection: The SBA notes a DBA is merely an alternate name and provides no liability protection.
- Mixing business and personal money: Use a separate business checking account from day one to protect personal assets.
- Paying monthly on a permanent store: Paying monthly for Shopify Basic costs $468.00 over 12 months ($39 × 12 = $468.00) versus $348.00 annually ($29 × 12 = $348.00), wasting $120.00.
- Missing the FTC 30-day shipping deadline: Late shipments without delay notices violate federal rules.
- Publishing template policies unread: Tailor return and privacy rules to what you actually do.
- Launching without a test purchase: A test purchase catches payment bugs before real shoppers see them.
What to do this week: a 7-day launch plan
- Day 1: Check local permits and pick your business name.
- Day 2: Apply for your free EIN at irs.gov ($0) and open a business bank account.
- Day 3: Register your domain and start a platform trial (Shopify gives 3 days free then $1/month for 3 months; Squarespace gives 14 days free).
- Day 4: Add your first 5 products with photos and prices.
- Day 5: Turn on built-in card payments (2.9% + 30¢), set shipping rates, and enable sales tax.
- Day 6: Publish return, privacy, shipping, and terms policies in your footer.
- Day 7: Place a live test order, refund it, remove your password, and launch. Download our free launch checklist for a printable review.
This guide provides general information, not legal or tax advice.
Sources (checked 2026-10-03)
- USAGov: start a business, overview and note on federal grants
- SBA: register your business, names, DBA and trademarks
- SBA: apply for licenses and permits, state, local and federal permits
- SBA: open a business bank account, when to open and what banks ask for
- SBA: pay taxes, tax laws vary by location
- IRS: employer ID numbers, who needs an EIN and how to apply
- Shopify: pricing, Basic plan prices, card rates, features, trial offer
- Shopify: new store checklist, setup order
- Shopify: getting started, product, theme and domain
- Shopify: domains, myshopify.com address and custom domains
- Shopify: policy templates, refund, privacy and terms templates
- Shopify: US tax guide, consult a tax professional
- Shopify: payouts, US 3-day payout settlement
- Squarespace: pricing, Basic and Core plans, trial, free domain on annual plans
- Hostinger: domains, standard .com domain renewal rate
- Namecheap: .com registration, standard renewal rate range
- FTC: Mail, Internet, or Telephone Order Merchandise Rule, 30-day shipping rule and delay notices
- GOV.UK: register for VAT, UK VAT threshold
- GOV.UK: set up a business, Self Assessment and company registration
- Canada Revenue Agency: GST/HST registration, small supplier threshold
- business.gov.au: register for GST, Australian GST threshold



