Hello,

As you can see by the number of posts I am a newbie, so be gentle. Anyways, I have a question. What would I need to do to start a web design business. I mean, since it is online, do I need to file with my local goverment or not.

Anyone have experience with this? I live in the US, so laws may vary.

Thanks for any help you may provide.

Jim

check with your local laws for business licensing issues, etc

If your in the US, then look up the SBA in the phone book.
or on line..

The Small Business Assc, is set up to help you learn what you need to know. Most states don't have specific internet business ststus's yet, so will tell you to license as a "service" company. Many will not require it, but a merchant account to accept CC's will.

Get with the SBA and they will give you all the info you need, and even have mentor programs for many things. It's a great place to start.

Tim L

Choose a cool name

Register the domain

Go to your local county courthouse and file a dba

Go to your bank and get a checking/savings account with your dba paperwork

Get a Tax ID

Get a web host

Set up a website

Start selling!! your all set. Once you get big enough you may want to incorporate your business.

cptkirk has the right idea. His response pretty much sums it all up if you're just starting out.

cptkirk does have the right idea...

But, every state is different (even some cities have different laws) and you may have to get a state sales tax permit in some states (I believe Texas collects sales tax on web hosting - but not 100% sure). Most states, however, do not collect sales/use taxes on web hosting services.

Also, you may not have to get a Tax ID (Federal Employer Identification Number) from the IRS if you don't have any employees (other than yourself). Avoid it, if you can, because it will cause a lot of unnecessary forms to fill out (SS-4, Quarterly 941's, etc).


Best of Luck,

Keith

One way that you might want to start out, is the non business route...

You can sign up for a reseller account, get your website setup (you should not be advertisiing hosting at this time) and sell accounts to your friends/family/co-workers etc. Word of mouth can get you a fair ways, and this will allow you to start making some money before you take the plunge.

cptkirk's did a fine job of summing it up.

If you want to go into the hosting biz, or any business for that matter, take a good read through your state, county, and city tax information. And 4solutions's got the rest of it. Here in Idaho I have to file my ABN (Assumed Business Name, Doing Business As, Fictitious Business Name, etc) with the state, and my name is protected against someone else using it over the entire state. However I have worked with business in Oregon and Washington... things are different everywhere.

Don't go incorporated right away. Stay a sole-proprietorship until you hit a reasonable income. Without going as a corporation you avoid the need for a lot of tax forms as stated above. And as a sole-proprietorship, your TaxID is just your SSN. Simple.

Do, go with a business bank account, get a check/debit card. Use this for all your transactions, get access to online banking, get a program to keep track (I use QB), and then use a program like TurboTax to file taxes..... simple, no accountant necessary, all in house, and efficient.

Good Luck!

You can also start a LLC - Limited Liability Company. The IRS treats you like a private person and it protects your personal assetts very good. It's a mixture between a corporation and a sole proprietor.

The Fish

by the way - make sure you check prices before you incorporate. Doing it on-line may save you a big bugs.. local law dudes usually charge more :) check out www.corporate.com for very competitive pricing (used them before). And check out other on-line incorporation sites as well - maybe you will save even more :)

for registered trademarks etc, you may want to check out US Trademark and Patent Office web site and search on-line

http://www.uspto.gov

thx

By the way, TheFish is correct... LLC is better for start-up firms, but the are some minuses: usually 30 year company age limit, a bit harder to go public... :) But advantages are that you do not pay double tax.. e.g. corporate income and then income you get from shares..... You can also avoid it by paying high salary to yourself.. but please check with some accounting dude :) It also depends from state to state, from country to country:)

The best advice I could give...is to find a good accountant or CPA firm that works well with a small business. Your going to have enough on your plate, don't try to tackle tax laws at the same time. I would recommend finding a small CPA firm with 3/4 employees...Interview them, ask what software they use and how you can communicate with them. Then, have whoever you select do both your business and personal tax returns (as they tie together so tightly when starting a small business).