Are there different requirements for starting an internet business than for starting a "storefront" business?

Question

I'm interested in eventually having an actual storefront, but can't afford the overhead until I'm sure the business is going to take off, so I thought I would start selling online.

BTW...I'm mostly asking about legal requirements.

Answer 1

There are significant differences in terms of legal requirements.

An online store is simplier to start in terms of all the regulatory requirements. In many states, all you need is to register your business and get sales tax. Note that business registration is different from business licensing, and online stores are typically not licensed (those where licensing is required includes daycare, etc.). All you need to do is to go to your county and ask them how to register a business and get a DBA or assumed business name if you are planning to use a name other than your given name.

With an actual storefront, you will need zoning approval, construction permits, business license, business registration, and in some states, you even need a permit if you are playing music in your store.

Ecommerce is certainly the way to go if you have limited resources.

Answer 2

This is a minor detail, but if you operate a business out of your home you probably still need to apply for an occupational home business license. Most people think you only need this if you have a storefront, but you need to check it out for your area. It just depends on where you live. Check your city, county and maybe even your state government websites and do a search for occupational licenses.

Answer 3

You just answered your own question-OVERHEAD.
A store front store is brick and mortar. You have to rent a facility that is large enough to accomodate the business. You need utilities for the store. In a store you also need a large inventory. If somebody comes in they want to walk out with the product.

The biggest difference as you said is OVERHEAD.

Answer 4

Requirement are pretty much the same...

Be sure to form atleast an LLC to protect yourself!

Answer 5

Try: http://www.exooom.com