This is kinda stupid but i'm really new to this thing.
I wanna start a web host reselling business(just for about 30 to 50 web design clients of mine), but I don't know how to get started in terms of legal issues and paperworks.

Here are my questions:
1. Can I use my personal bank account as my business account to accept credit cards payment? Or do I need to open a new business account with my business name?
2. What is a good company I can use to accept credit cards? Pay Pal, 2checkout, or WorldPay?
3. What is the best UNIX hosting company that offers reseller program?
4. What about tax issue? Is that like freelance or as a business account?

Thanks for all your help.
HD

Originally posted by hostdemon
This is kinda stupid but i'm really new to this thing.
I wanna start a web host reselling business(just for about 30 to 50 web design clients of mine), but I don't know how to get started in terms of legal issues and paperworks.

Here are my questions:
1. Can I use my personal bank account as my business account to accept credit cards payment? Or do I need to open a new business account with my business name?
2. What is a good company I can use to accept credit cards? Pay Pal, 2checkout, or WorldPay?
3. What is the best UNIX hosting company that offers reseller program?
4. What about tax issue? Is that like freelance or as a business account?

Thanks for all your help.
HD

Don't feel stupid, if you don't know....This Forum is the place to ask.

1) You can use a personal Checking account for a Merchant Account. (Depending upon your provider) - However, this is NOT a good idea. You'll want to separate business from personal.

2) Search this Forum for PayPal/2Checkout/Worldpay and read both the positive and negative comments... Then decide for yourself. You could also get a Real Merchant Account... But Your breakeven is about $1,200 in charges per month.

3) Every Person on this Forum will state that "They are the Best". I suggest you spend a few days doing several Searches on this forum and read the Positive & Negative about each possible host you would be dealing with.

4) Taxes ?? "No Comment" Remember, the IRS is not your Friend and I'd not want to piss them off. Better to do the right thing then explain to a tax judge why you didn't.

My 2 cents

Thank you, raq4less

That really helps.
HD

Originally posted by raq4less

1) You can use a personal Checking account for a Merchant Account. (Depending upon your provider) - However, this is NOT a good idea. You'll want to separate business from personal.


I don't agree here. If you are a sole proprioritor (spelling?) then its perfectly fine to use your own Checking account, as long as you file taxes under your social. If more than one person owns the company, then you are going to need to get an EIN and get a business bank account.

I asked a few places about this issue, and they told me that, all I need is an Internet Merchant Account which I can set up at 2checkout, worldpay..etc...And I can use my actual personal bank account when I sign up just to withdraw or deposit more $$

Is that true?
Thanks

Yes... the sites you are talking about, 2checkout etc, do not actually provide you a true merchant account. You are getting an account with them and they use their merchant account to process transactions.

Many hosts start out that way and there's nothing wrong with it. You can use your personal checking account with no problem.

Originally posted by gadget
Yes... the sites you are talking about, 2checkout etc, do not actually provide you a true merchant account. You are getting an account with them and they use their merchant account to process transactions.

Forgive me if I'm wrong, but wouldn't that be money laundering?

Let's see, laundering... "to wash"... no, "to make ready for use"... no.. Ah! Here it is:

"to transfer (as illegally obtained money or investments) through an outside party to conceal the true source"

No.

Oh, lmao. I've read somewhere that processing one merchant's charges through another merchant's account was 'laundering'.

Again, I wasn't sure. :o lol, if it was laundering then I guess 2CO's CEO would be behind bars

Originally posted by Chysical
Oh, lmao. I've read somewhere that processing one merchant's charges through another merchant's account was 'laundering'.

Again, I wasn't sure. :o lol, if it was laundering then I guess 2CO's CEO would be behind bars

We keep the BIG CHEESE behind bars. We used to let him roam free, but he kept sticking his nose into everything, Kristin had to chase him out with a rolled up newspaper.