When starting an online business there are a few things we recommend you do.
1) Contact your state’s Small Business Association: http://www.sba.gov/regions/states.html
2) Choose a Structure
3) Obtain Licenses
A) State
B) Federal
Contact your SBA
Because the rules and regulations are different for every state it is best that you contact the Small Business Association for your home state.
Please visit below for specific contact information
http://www.sba.gov/regions/states.html
Remember, the SBA is used to helping people who have never owned their own business before. They are the experts for your state and will help make the legalities of a personal business quick and painless.
Choosing a Structure
When starting up your new business one of the first decisions to make is choosing the structure of your business. There are several factors that should influence your decision about your business organization:
1. Legal restrictions
2. Liabilities assumed
3. Type of business operation
4. Earnings distribution
5. Capital needs
6. Number of employees
7. Tax advantages or disadvantages
8. Length of business operation
Structures Intro.
While there are many different ways to structure your business, the five most common include: sole proprietorship, general partnership, limited liability partnership, limited liability company, and the corporation.
As mentioned above there are several things that ought to be taken into consideration when making your decision, such as financing methods, ownership structure, liability, taxes etc. Based off of these and other factors you should be able to find a structure that is best suited for your needs.
Below you will find a “Business Structure Wizard” provided by the businesslaw.gov website.
"Based on your response to questions designed to elicit information concerning these factors the wizard that starts below will help you weigh the pros and cons of each the five basic structures."
"The wizard can provide you with information on the business structures that appear to best suit your needs and goals. It cannot, however, make a final decision for you since it does not take into consideration the unique aspects of your particular situation or unusual variations in state laws. Therefore, your final choice should be made only after consultation with a qualified attorney, accountant, or other professional business advisor."
"Finally, keep in mind that you can always change later. For example, if you start as a sole proprietorship, you can change to an LLC or corporation if your business grows or your need to limit your personal liability increases."
Start the "Choosing a Business Structure" Wizard!
Obtaining Licenses
As we mentioned earlier, there are many types of licenses, both federal and state. You will need these to operate legally almost everywhere. If you are located within incorporated city limits you will want to visit the city offices to obtain a license. If you are outside city limits you will want to obtain these from the county.
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State license information:
http://www.abanet.org/legalservices/lris/directory.html
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Taxes
Because tax laws can be extremely complex, small business owners are strongly encouraged to seek professional assistance. A good accountant or CPA (Certified Public Accountant) will help navigate through local, state, and federal laws and also explain how to minimize future tax obligations.
Even if you retain professional tax assistance, your tax responsibilities are still solely your obligation. You should understand how the various tax systems impact your business. Although the following information is not comprehensive, it does provide an overview of the most common business tax requirements.
Business Laws
Complying with business laws and regulations can be a burden on small businesses. To help businesses overcome this hindrance the SBA in cooperation with multiple Federal agencies developed BusinessLaw.gov, an online resource designed to provide legal and regulatory information to America's small businesses.
Because laws and regulations affect every aspect of business strategy, topics covered on this site range from the most basic and crucial such as choosing a business structure or hiring a lawyer to highly specialized issues such as e-commerce and exporting. The site also acts as a gateway to federal, state, and local information that affects small businesses. From the site business owners may quickly check zoning codes for their local area or file a complaint with the Office of the National Ombudsman.
One of the main reasons small businesses fail is because they don't seek legal help at critical development stages. Learn more about the legal aspects of starting and running a business.
http://www.sba.gov/starting_business/legal/buslaws.html
Getting Started
http://www.sba.gov/starting_business/startup/guide2.html
Regulations
http://www.sba.gov/starting_business/startup/guide4.html#buslic
Business Plans
http://www.sba.gov/starting_business/planning/basic.html
Writing
http://www.sba.gov/starting_business/planning/writingplan.html
Samples
http://www.bplan.com/samples/sba.cfm
