📅 2026 Update: Key Changes Impacting Online Business

Since the original article was published, several significant updates have occurred in US business law that affect online businesses. Changes in subscription rules, sales tax requirements, and merger notification processes are among the most impactful. Readers can find the original article further down the page for foundational insights.

📜 FTC Subscription Rule Changes

In October 2024, the Federal Trade Commission (FTC) aimed to make it easier for consumers to cancel subscriptions. The new rules required that canceling a subscription be as straightforward as signing up. However, in July 2025, the Eighth Circuit Court vacated this rule, and the FTC formally withdrew it in February 2026.

Businesses can continue with their existing subscription models without having to comply with the proposed changes.

⚖️ HSR Premerger Notification Updates

The FTC's 2024 revisions to the Hart-Scott-Rodino (HSR) premerger notification form were struck down by a federal court in early 2026. This means that businesses involved in mergers and acquisitions must revert to the older filing requirements. Nevertheless, the annual threshold for reportable transactions has increased to $133.9 million as of February 17, 2026.

🌐 Digital Trade Law Developments

A new agreement on digital trade was finalized in late 2024 under the World Trade Organization (WTO). This agreement affects international e-commerce by setting new regulations that businesses must follow. Staying informed about these changes is essential for companies engaging in cross-border transactions.

💰 Current Fees and Costs

Recent updates also impact costs for online businesses. The Durbin Amendment caps debit card interchange fees for large banks at about 22 to 24 cents per transaction. Additionally, online sellers must now collect sales tax once their annual revenue exceeds $100,000 in most states.

📌 Summary of Key Points

  • FTC subscription rule changes were vacated in 2025.
  • HSR filing requirements reverted to older rules, with a new transaction threshold of $133.9 million.
  • A new WTO agreement on digital trade affects international e-commerce.
  • Debit card interchange fees are capped for large banks.
  • Sales tax must be collected after exceeding $100,000 in annual revenue.

💡 Tips for Starting Your Online Business

Consider reviewing the details of your situation with an attorney to ensure compliance with current regulations.

📝 Understand Subscription Rules

Stay updated on subscription service regulations. Even though recent FTC changes were withdrawn, businesses should still maintain clear cancellation policies to build consumer trust.

📊 Monitor Sales Tax Obligations

Regularly check your sales tax nexus status. If your sales exceed $100,000 in any state, you must collect and remit sales tax in that state.

🔍 File for an EIN Early

Obtain your Employer Identification Number (EIN) as early as possible. This process can be done online for immediate processing, helping you set up your business quickly.

📃 Register for a Sales Tax Permit

Make sure to register for a sales tax permit in any state where you have a tax obligation. This step is crucial for maintaining compliance with state regulations.

🔒 Create a Privacy Policy

Develop a clear and transparent privacy policy for your e-commerce site. This policy should explain how you collect, use, and share customer data to comply with legal requirements.

📈 Utilize Compliance Tools

Consider using sales tax compliance tools to help manage your tax obligations across multiple states. These tools can simplify the process and reduce the risk of penalties.

🏆 Online Business Services Ranked by User Reviews (2026)

This section highlights services that can assist you in starting and managing your online business. These services include legal document preparation, business formation, and compliance support. The following rankings are based on Trustpilot data checked in October 2026.

Ratings can change over time, and it's important to consider customer feedback as one of many factors when choosing a service.

🥇 1. LegalZoom

LegalZoom has been rated 4.6. It is known for its business formation services and legal document preparation. Some users report delays in processing times, which may affect time-sensitive business needs.

🥈 2. Bizee

Bizee holds a Trustpilot score of 4.8. It specializes in business formation and compliance services, along with registered agent services. Users have mentioned limited customer support availability, which could be a concern for those needing immediate assistance.

🥉 3. Rocket Lawyer

Rocket Lawyer has a Trustpilot rating of 4.5. It is recognized for online legal document creation and affordable legal services. Some reviewers find the subscription model costly for those who only need services occasionally.

🥈 4. LegalShield

LegalShield has been rated 4.4. It offers legal subscription services and access to a network of law firms. However, some users report challenges in reaching their assigned attorneys directly, which may impact service accessibility.

🆓 Free Government and Nonprofit Help

The IRS provides free resources for obtaining an EIN and understanding tax obligations. Additionally, state revenue departments often offer guidance on sales tax compliance. Organizations like SCORE also provide free mentoring and resources for small business owners.

🔎 Key Factors to Compare

  • ⭐ Trustpilot scores and review counts.
  • 📄 Types of services offered and their relevance to your business.
  • ⏳ Processing times and ease of use.
  • 💬 Customer support availability.
  • 💰 Cost structures and potential hidden fees.

❓ Frequently Asked Questions

❓ What is the FTC subscription rule?

The FTC subscription rule aimed to make it easier for consumers to cancel subscriptions. However, this rule was vacated in 2025, meaning businesses can continue with their existing subscription models without the proposed changes.

💲 How do I understand sales tax nexus?

Sales tax nexus means you have a tax obligation in a state. This occurs if you have a physical presence or exceed $100,000 in sales in that state.

📄 What documents do I need to start an online business?

To start an online business, you'll need to file formation documents with your state, obtain an EIN, and register for a sales tax permit where applicable.

⏰ How long does it take to get an EIN?

If you apply for an EIN online, it is processed immediately. Mail or fax applications can take up to four weeks.

📊 How often should I check sales tax compliance?

Regularly review your sales tax obligations, especially when your revenue changes or if you expand into new states.

🔍 Where can I find free resources for my business?

The IRS offers free resources for EIN applications and tax obligations. Additionally, many state departments of revenue provide free guidance, and nonprofits like SCORE offer mentoring services.

⚖️ Recent Cases Impacting Online Business

Recent court rulings, including changes to the FTC subscription rules and HSR notification requirements, can significantly impact online businesses. These decisions shape how businesses operate and comply with regulations.

For more recent rulings, browse more rulings on the news page.

End of October 2026 Update





What is an Internet Company?

An Internet company is an online business that is run through the Internet. The business models can be varied. An online business may include outsourcing of services, retailing, reselling items to other companies, supplying information, etc.

An internet company is a business that initiates and conducts its business model through the use of the Internet. Typically these companies are referred to as “dot-com companies” and are available through accessing a website that uses the top-level domain “.com”, which is means for “commercial use”.

Through the advancement of computer technologies the Internet has offered various companies with the ability to reach a maximum consumer base through the investment of a minimal cost. Although Internet companies typically provide a tangible good or service, the platform, or their mechanism to reach their intended demographic is primarily conducted through cyber space. 

How to Start an Online Business?



How to Start an Online Business



Establishing an online business is a lucrative means to sell, market, and advertise a particular good or service. Before you start an online business, however, you must follow the basic rules of starting a business. 

Before you create your online business you must construct a business model that specifically states the focus of your intended business. If you would like to monetize your site, understand the various advertising and marketing strategies that are present in the Internet community.

The first step to starting an online business is registering a domain name. A domain name is the web address of the online business. It is the tangible website where consumers or clients go to access your particular products or services.

Choosing and registering your domain name is the first step to establishing your online marketplace. To do this, you must choose a name that is aligned with your product or service and conduct a search to observe if that particular name is available for purchase. After you have chosen your desired web address, you must access a certified registering authority to purchase the domain name. 

It is essential to understand the laws associated with domain names. The Internet Corporation for Assigned Names and Numbers is the non-profit corporation that presides over the Internet protocol address space allocation. In addition, this corporation regulates the protocol parameter assignment, the domain name system management procedures, and the root server system management functions. 

When choosing a domain name, be sure to avoid trademarked names. As is common with traditional businesses, trademark laws will apply to businesses and their respective domain names. Using a domain name that is trademarked or similar to an established company or existing product is referred to as “cybersquatting” and carries significant legal implications. 

Once you have established your online business, you should hire a web developer to assist in the physical creation of the website. 



Warnings

Be sure to watch out for website building services and hosting services that do not handhold you through the process of constructing your online business.

The Internet is regulated by law. Privacy laws and trademark issues must be understood in order to run a legal online business.