Legal requirements for a social networking site?

**CollegeComa** · 07-14-2009 04:06 PM

A friend and I are in the process of starting up a user-driven college stories type site (collegecoma.com) and we are starting to think about the legal requirements for having a site of this kind. Our revenue would come entirely from ads in the beginning, hopefully with an addition of an online store later.

Question is, would it be necessary to apply for a business license so early in the game? I would assume that we might need to fill out a tax form in order to register to pay taxes on whatever income we make from our ads, but would you guys suggest that we file for our business name and the whole works? We are located in California.

If you guys could point me in the right direction it would help out a lot with my research into this topic.

Thanks.

**CollegeComa** · 07-16-2009 05:43 PM

bump........ ?

**LSnyder** · 07-17-2009 01:20 PM

If you are bringing in income from ads you should be registered as a business. It's a very simple process.

**bizdev** · 07-17-2009 02:47 PM

Since the goal of your new business is to generate income and you are working with a partner, then you should choose a business structure (partnership; LLC; etc) first. Then register your business name with your local government office (county office likely). Very quick and inexpensive.
Then you will take your DBA certificate (given to you when you register the biz) and open a business checking account. Also quick and easy.

Now you will be ready to accept payments and pay your taxes.

Since you are not selling products yet you don't need to worry about sales tax. That's another step. When you are ready, you simply fill out a form with your state tax department and you're set.