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What do I need to start an internet business? - Startups.com | Your Business. Your Questions.
When I start an internet business with a website, do I need to register a business name first?
Also, do I need to incorporate as well?
Or can I just start off with my own TaxID and then register the business name and incorporate later when it starts to generate more revenue?
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If you are in the U.S, the best place for you to check is the IRS official site.
Business.gov is an interesting site where you can get the data you need about this kind of companies in a simple way.
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If I understand your question correctly, then it's most important that you don't violate someone else's trademarks -- I think whether you need a trademark yourself is a different issue (and I think it doesn't have much to do with the web / internet -- but see also my question: What things are different about online startups than “IRL” startups?
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Generally speaking, there are no regulatory filings related to starting an Internet business (in the US).
However, as good measure, you may want to think about the possible tax issues and structure yourself from the beginning.
It all depends on the type and size of business you will be operating.
If you will be distributing & selling products you may be subject to collecting sales tax revenue, not only for your state, but any state you sell product to.
If it's collecting commission income or charging for services (advertising, etc), you'll have less reporting requirements.
It's all relative.
Regardless, here are the three regulatory areas you may need to address:
Federal: IRS filing status (sole proprietor, corporation, partnership, etc) State: Sales tax permit, Employment Withholding Municipal: Business license It's all treated as personal income until you file a corporation.
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Just get started.
Don't worry about forming a business name, etc.
Until you start making money.
Alot of people spend all their time figuring out these questions that will eventually becoming important, but then can't build a business.
As Nike says, Just Do It!
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Get a .COM domain name from GoDaddy.
Use a coupon code to get it for $8.
Or if you have the funds get a high quality domain name from aftermarket sites or private owner.
Get a reliable webhost that is around $8-$10 per month, a simple account is all you really need to start!
Install WordPress.org and start blogging or create your business.
Get on Twitter and other social sites and start networking with people of interest to your business.
If you're interested in specific WordPress ecommerce plugins or themes which can help start a business consider checking out my site or connect with me on Twitter @DotSauce for more online business resources.
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It depends on your goals.
After starting a number of web businesses I've learned that when you're at the "idea" stage its much more economical to start as a DBA and then move up to incorporate after you've either A) found business partners B) generate $50,000 or more in revenue or C) are seeking outside capital.
Websites frequently go foul very quickly.
Personally I have a "holding company" that I lump all my projects into w/ the same bank account etc.
If one of the properties hits one of the ABC criteria I mentioned, I'll incorporate it.
But if they don't its no big deal, I don't have an extra business entity to deal with at tax time
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I would avoid getting too much into the technical details of setting up the legal framework for your website.
The reasons are clearly stated in the posts above and I agree with Ron that you need to be generating at least a minimum amount of revenue before you start dealing with the headaches of incorporation, minutebooks, shares, etc.
(I too have a holding company which owns several websites, and I spin them off into separate corps once they become moderately succesful).
One critical piece of advice that I would like to share and that I wish someone shared with me when I was starting out: Figure out what your users/customers want first!
This is the most important part of your business, and once you have cracked this nut, everything else will follow.
It will be much easier to build a business model around your idea once you have established a solid user/customer base.
Then you can hire lawyers to deal with the paperwork for you.
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