Do I really have to go through all this to setup an online business?

BoldAsLove

Platinum Member
May 10, 2005
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I have been looking into starting a small online business, and have come across licensing. Do I actually have to get most of this stuff? I am going to be the only employee right now, and will be handling all shipping/sales.
Heres the link for my county
Text

Why are incenses required for online businesses?
 

AgaBoogaBoo

Lifer
Feb 16, 2003
26,108
5
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You don't need to go through all that. See if you can contact someone in your local area for detailed information, any of those would be a good starting place. You probably don't need to get anything and can operate under your own name if you wanted, but that puts all liability on you and your personal assets. Look at different types of busines corporations available to you and see which fits you best. I have an LLC that I operate my projects under and it's been working well so far for me.

Again, I'd find someone to talk to that knows more for your area, but I'm not sure the the things listed on that page will apply to you because it's an online business. I'm assuming that you're not starting out by setting up a business with a location outside your home, employees beside yourself, etc. though.

Drop me a PM with any questions you have, I'll be glad to help. I'm not sure how much of help I'll be to area specific questions, but everything else I can probably give some feedback.
 

nanette1985

Diamond Member
Oct 12, 2005
4,209
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No, you don't.

I assume you're working at home and by yourself - no employees. That eliminates most of the requirements.

The first thing you need is a customer. You do not have a business until you've sold something (not always true, but good rule of thumb).

Once you've sold something, you need an accountant to tell you how to set up your books. The accountant will know about taxes. You will be paying lots of taxes. Get used to it, and remember, the more you pay in taxes, the more money you have made.

Another rule of thumb (also not always true) is to wait until the state/whatever complains before you worry about licenses, etc. Focus on the business.

Best of luck!
 

aloser

Senior member
Nov 20, 2004
511
1
81
Originally posted by: BoldAsLove
I have been looking into starting a small online business, and have come across licensing. Do I actually have to get most of this stuff? I am going to be the only employee right now, and will be handling all shipping/sales.
Heres the link for my county
Text

Why are incenses required for online businesses?
:confused:

 

WolverineGator

Golden Member
Mar 20, 2001
1,011
0
76
Originally posted by: aloser
Originally posted by: BoldAsLove
I have been looking into starting a small online business, and have come across licensing. Do I actually have to get most of this stuff? I am going to be the only employee right now, and will be handling all shipping/sales.
Heres the link for my county
Text

Why are incenses required for online businesses?
:confused:

To smell good perhaps?
 

gsethi

Diamond Member
Feb 28, 2002
3,457
5
81
are you going to setup as a Corporation/LLC or Sole Proprietary ?

Sole Proprietary:
City Business License.
Fictitious Business Name
State Resale Permit (if you are going to be selling item)
EDD (for California) and Worker's comp if you have any employees

Corporation/LLC:
EIN Number (Federal ID Number)
City Business License.
Fictitious Business Name
State Resale Permit (if you are going to be selling item)
EDD (for California) and Worker's comp if you have any employees


Thats basically it. Even though it is an online business, you will still have a physical address and thats why you need the licenses since you are doing your "online" business from a physical location within a city/county/state.

EDIT:
If you are going to be making any structural changes, then you will need Zoning Approval. Basically, before giving you a city license, the city will tell you to get approved from Zoning. Zoning will ask if you are going to make any changes to the structure.

If you are going to, then you will need to first get a zoning permit, make the changes, get those changes inspected and only then zoning will give you approval. if no changes, then the person will take your word for it :p and give you approval on the spot.

Business Personal Property form will usually come in ordinary mail within a few weeks of you establishing your business. You just fill out that form and mail it back.

Fictitious Business Name: You will need to go to County Office and file for it and will need to get it published in a local newspaper.

Resale Permit: You will need this if you are selling any item in the state. Basically, the state wants to collect sales tax on anything you sell for retail consumer use (unless you are selling to resellers, in which case, it will be non-taxable and your customer will be paying sales tax and not you).

Let me know if you have more questions.

You will ONLY need EDD, Worker's Comp, Labor laws etc if you are hiring employees.

Corporate/LLC Filings: If making a Corporation, then you will need to file with your state before you do anything else. You will need a corporation number before you do your city license, resale permit, Fictitious name etc.