For retail businesses

Most retailers form as LLC for simplicity. As profit reaches $80K-$300K, S-Corp election (Form 2553) typically saves on self-employment tax. C-Corp appropriate when planning to raise capital, sell equity, or operate at significant scale. Multi-location retailers often use separate entities per location for liability and easier sale of underperforming stores.

Required after meeting economic nexus thresholds. Standard threshold: $100K in sales OR 200 transactions in a rolling 12-month period in that state. Some states (KS) have $0 threshold. Online retailers and DTC brands often hit thresholds in 15-30 states. File.Business handles multi-state sales tax registration + filing.

If you sell through Amazon, Etsy, eBay, Walmart Marketplace, the marketplace collects + remits sales tax on YOUR behalf in most states. This shifts the registration requirement: you may NOT need to register where the marketplace handles tax, but DTC sales from your own site STILL need registration. Distinguish marketplace sales from direct sales for correct compliance.

Standard: general liability ($1M minimum), product liability (especially for branded products), commercial property (inventory, fixtures), workers comp (if employees), commercial auto (if delivery), cyber liability (for online retailers + payment processing). Costs $100-500/month for small retailers.

Federal tax requires retailers maintaining inventory to use either Cash + Inventory (allowed for businesses under $29M in gross receipts) or Accrual method. Section 263A uniform capitalization rules apply to inventory for larger businesses. Common methods: FIFO, LIFO, weighted average. Choice affects taxable income and balance sheet - coordinate with a retail-specialized accountant.