What are the legal procedures for starting an online business?

Answer 1

There are no special procedures for online businesses. You should do what every other business does. Essentially, you need to decide if the business is to be a sole proprietorship, a partnership, a corporation, or an LLC. Once you make that decision, you should file appropriate forms with your county clerk (in case of sole proprietorship or partnership) or your state (in case of corporation or LLC). The details vary, depending on which county or state you are in.

Answer 2

The same as for any business.
1) Choose your Business Name
2) Create Business Plan
3) Choose Business Structure and register your company
The following table will help you to make a decision about business structure: http://www.blquest.biz/business_structure.htm

DBA is the cheapest one. But it is the worst way to save money. In taxes and liabilities you will pay more down the road. Chose between LLC and Corporation.

4) Apply for Employer ID Numbers (EIN) with IRS. http://www.irs.gov/businesses/small/article/0,,id=98350,00.html

5) Establish your business:
•Obtain all necessary licenses. Call your town and secretary of state for information about licensing. Licensing laws are different from state to state.
•Open physical location for your business. Can be you home office. Check with local government if you need special licensing or permit.
•Order business phone lines, fax line, 800 numbers and other communication tools
•Order business website and e-mail

6) Enroll your business in Better Business Bureau after 6 months of existence.

Good luck,
Marina Lando
President
Business Loan Quest
http://www.business-loan-quest.com