How to register a Web Business?

[BizZNasDreamer]

I want to start a website that provides a services to its users, (NOT PRODUCTS like most e-commerce websites)...What are the steps that I need to take to register a web business with the Government? Do I just apply for aN EIN number? Do i need a Business license?

[The Stealthy One]

This honestly depends on your country and locality. Where are you at?

[radreality]

depends on how much money you want to spend. First you don't need anything, but its smart to do something. Don't worry about an EIN/tax id right now. If you want to go the cheap route, just do a sole proprietorship to start out with, then as the business grows you might want to consider turning it into an LLC or a corporation (depending on what an attorney advises you to do for your situation).

If you are just doing a sole proprietorship, you don't need to worry about the federal government or the IRS. All the business licenses are done at the state level. They don't care if its a web business or not, its all the same to them.

If you don't know how to do these simple steps, you are probably getting in over your head unless you are willing to learn a lot and pay attention to the information that your state will give you regarding business procedures.

There are tons of variables as to what you need to do for your specific situation. No one on here will be able to tell you everything you need to do. Contact your state's department of licensing and get information about starting a business in your state.

You will also need to find out if your state requires any additional licensing for your type of business. If your city requires any additional licensing for your business. Any and all taxes that your state has on your revenues (often times there is a B&O tax off the top of revenues generated from within your state). This is all stuff that you will have to do the research on, unless you want to hire an attorney and/or cpa.

Your state's department of licensing and your state's department of revenue websites will be the most helpful to you.

______________________________
Robert Falk
Business Developer / Investor
Self Help & Success Forum

[BizZNasDreamer]

This honestly depends on your country and locality. Where are you at?

I'm in Illinois near chicago

[The Stealthy One]

Ok, so there are there sets of laws you'll have to follow:

1. federal
2. state
3. county (or city, depending on whether your city is incorporated or not)

Federal rules are pretty straight-forward: if you plan to hire any employees, you need an EIN, and even if you don't, it's just a good idea. Many suppliers will need your EIN before they extend credit. As for taxes, you pay them on Schedule C of your regular 1040 (if you're a sole proprietor, which is what I gather).

State laws vary, obviously enough, from state to state. Unfortunately, I am in Virginia, so I can't help you here. Additionally, county and city laws vary, within each state. Most localities require a business license. You will go to your local city or county courthouse to get this (usually in the clerk's office).

As for state laws, locate Illinois' Website for business owners (every U.S. state now has one), and see what it says. Even if you can't make sense of the info there, it will include a phone number you can call for help.

A sole proprietorship is not too hard to setup, so it should be pretty easy to get everything together.

Good luck!

[BizZNasDreamer]

depends on how much money you want to spend. First you don't need anything, but its smart to do something. Don't worry about an EIN/tax id right now. If you want to go the cheap route, just do a sole proprietorship to start out with, then as the business grows you might want to consider turning it into an LLC or a corporation (depending on what an attorney advises you to do for your situation).

Since I would be trying to pitch my web business to my customers in person and over the phone I felt I needed to try to make it as official as possible because the nature of my business deals with peoples personal and other sensitive information...I dont want them to think I'm trying to scam them, you know?...By the way how much does licensing cost of incorporating?

[radreality]

Since I would be trying to pitch my web business to my customers in person and over the phone I felt I needed to try to make it as official as possible because the nature of my business deals with peoples personal and other sensitive information...I dont want them to think I'm trying to scam them, you know?...By the way how much does licensing cost of incorporating?

every state is different, but usually falls between $150 and $250 for all the state startup fees, and a smaller annual renewal fee.

Depending on the nature of your business, it might be smart to have some type of insurance just in case something happens with a customer. It all depends on what types of services you plan on doing.

If you are thinking incorporating, I would highly suggest just pay the extra money and hire an attorney ($750-$1500 on average for business formation), at least for your first time. A lot of people are advocates for doing it on your own. I've gone through the process several times and I still prefer to hire an attorney, they are the experts, let them do it. Plus you can ask them any and all questions you might have, and they will give you advice you can fully rely on, instead of advice on here which is often questionable.

If you are going to incorporate, you will need an EIN/tax id for the business, but those are either free or very cheap, I forget lol.

Read this article: Are You an Entrepreneur?
it was written by my personal business consultant

______________________________
Robert Falk
Business Developer / Investor
Self Help & Success Forum

[BizZNasDreamer]

Thanks everyone... that was great advice and very helpful!!!