I am starting a hosting company and don't have much in the line of cash. I have an awesome reseller program, and need to know how to do business online legally and cheaply.

Just want some advice :)

- James

Well regarding the topic of legally.
First, if you live in the U.S. it would be a wise ideal to file for a DBA/Fictious name (with the county clerk), or go abit futher with a LLC or INC. (Depends on how you want to go and which best fits your company).

I would recommend 2CheckOut.com or Revecom for the online cc processing. (2CO charges $49 setup fee, and Revecom charges around that price as well).

And as always it would be a good ideal to consult with a lawyer and/or a fanicial advisor.

I just spoke with a business lawyer (a friend), and he said that it is really not neccesary to file any real papers at all with an online business, and that you can just start up and that an LLC or a DBA is not neccesary?

Is this true, that they are only reccomended?

I'm not so hot when it comes to business legalities. :)

- James

I would call that bad advice for several reasons..

Mainly for the fact that you're going to need a biz liscense to get any decent merchant account, or a business bank account. Also it depends on what your local laws are as far as the city you live in. Some cities will require a liscense for any type of business. I'm not a corporate laywer and don't claim to be but it also adds yourself some protection and a level of seriousness to your business. Most DBA's or County Business Liscenses are only but a few dollars, I know here in Alabama I can get one for aboutt 20-25 dollars. LLC's and Other Corporate Entities are more expensive.

DBA = Assumed Name, Right? That's only $25.00 here in MN too. :)

That's not too bad. When would a good time be to become an LLC though? Why is it prefered?

- James

Originally posted by zRedDice
I just spoke with a business lawyer (a friend), and he said that it is really not neccesary to file any real papers at all with an online business, and that you can just start up and that an LLC or a DBA is not neccesary?

Is this true, that they are only reccomended?

I'm not so hot when it comes to business legalities. :)

- James
You can do that if you don't have much cash now. But should consider them when your business starts making profit.