How to Start an Online Business
One of the most transformative aspects of the Internet has been the introduction to e-commerce. Buying and selling goods online has become the norm, and brick and mortar stores have to do more to keep up with the convenience of the point and click world.
As an entrepreneur, getting into the online business game is life changing. You’re expanding your reach to an audience much bigger than your town, however, managing the details of starting an online business can be overwhelming.
You’ve determined a need, you know your niche, and you’re confident that you’ve got a product that people want. You’ve outlined your business plan, but, how do you become an official online business? Let us walk you through the steps so that you’re creating an online business that meets all of the legal requirements.
Consider forming your e-commerce business as an LLC or Corporation
The number one advantage to forming your e-commerce business as an LLC or Corporation is personal liability protection. If you choose not to take this step, you’ll automatically be considered a sole proprietorship which means that any debts or liabilities of the business are also your personal debts and liabilities.
For example, perhaps you are being sued because someone who was injured from your product, or the name you chose is very similar to another business selling the same product. If you are acting as a sole proprietor and the judge rules against you, your personal assets are at risk. Let DoMyLLC help you determine whether an LLC or Corporation is the right formation for your business. We can walk you through the steps to ensure you have completed everything necessary to legally form your business.
Choose a Name
Just like a brick and mortar business, your name says a lot about your company. Think of something that is direct, doesn’t mislead the public to what you’re offering, and can be translated into a domain name. Let DoMyLLC help you determine if your business name is available through our free business name check, so you can avoid spending money on branding materials that can’t be used.
Understand the Legalities
There is so much more that goes into starting a business than just developing a product. One of the most important aspects of owning a business is understanding the law. There are rules and regulations for everything from what you can do with customer information to intellectual property. Visit the U.S. Small Business Association (SBA) website to better understand your legal responsibilities.
Another legal aspect of running an online business is understanding your tax obligations. The IRS offers a comprehensive website to help small business owners learn everything from starting and operating a business to determining which types of taxes you must pay, such as income, self-employment, and excise taxes.
With these basics under your belt, you’re ready to build a website and get your business up and running.