This is my first sole business venture and its an online based business in NY.

My question is, is how to get started legally. I have the domain and everything but where abouts do I start with the tax ID and registering the business entity with the government?

I am a sole owner and its low risk so just a simple sole-propietership (Spelling) is all I need right now. Also, anyone have prices to register this?

After some searching and digging, I was able to find a great page for anyone looking for this information and requirements of registering a business.

Here is the link:

http://www.nolo.com/article.cfm/objectID/3FD19141-DB91-4FCA-BDB93416A4D05479/111/182/147/ART/

Depending on the type of business you might just need to register the name, which would give you a tax ID and count you as a sole proprietorship, but this should be checked out locally with your government of NY.

Contact a CPA in your area - They will be able to hand you all the details you need to get your business registered and running legally.

Depending on the type of business you might just need to register the name, which would give you a tax ID and count you as a sole proprietorship, but this should be checked out locally with your government of NY.

As a sole prop. your SSN is your tax id.

Registering allows you to use a DBA for bank accounts, ect.

you need a business license if you work out of an incorporated area.

Sole-pros offer very little legal protection. I highly recommend that you consult with an attorney / accountant to find the best option for you.

Unless you are hosting a large corporate site, I doubt you need anything above DBA. But, don't take my word for it. That's just my thoughts.

For me I'm going sole proprietorship for now and the incorporate a bit later down the road. 1000's of businesses run under sole proprietorship's and as long as you deliver what you advertrise there should be no problems.

Unless you are hosting a large corporate site, I doubt you need anything above DBA. But, don't take my word for it. That's just my thoughts.


A *very* good example of why you should *never* get tax or legal advice from WHT. Please, please, please consult with a local CPA immediately.

--Tina

Tina,

I actually agree with a lot of your posts and admire you. But, this is one thing I would have to disagree about a little. Web hosts can be a number of sizes. Some have thousands of customers, and some are doing it for just a few locals with a reseller account (not that I have one).

Best Regards,
Jason

You can disagree, but neither you or I are qualified to give tax advice to anyone here...and that's the only thing that really matters, which was my point.

By suggesting that only "large corporate sites" need anything above a DBA is could potentially cost the OP a huge amount of money. There are huge benefits and protection by filing as an LLC or S Corp and the OP should not be taking advice or suggestions from anyone other than a CPA or Tax Attorney.

--Tina

Tina,

I actually agree with a lot of your posts and admire you. But, this is one thing I would have to disagree about a little. Web hosts can be a number of sizes. Some have thousands of customers, and some are doing it for just a few locals with a reseller account (not that I have one).

Best Regards,
Jason

Well think of it this way. In California to create an LLC costs about $100 plus $800/yr in taxes (its less in other stats. Consult an attorney.) If you get sued, do you think your legal fees + any monies the court orders you to pay to the plantiff will be less than $800. :rofl:

I thought about skipping forming an LLC but when someone asked me that same question, I saw the wisdom in it. Plus, as an LLC you are legally protected from losing your personal assets. All that someone can sue you for is for what your business owns. So no one is going to be taking your house, car, savings, etc.

You don't have to form an LLC, but I think it would be like buying a house and never insuring it.

Right. I look at it as - this is only information in advance. Then, do some consulting.