I am new here and new in e-ecommerce too! So pls pardon my newbie questions...
I am planning to start an online store to sell food products. Like many individuals who just want to TRY OUT first without investing arms and legs, I want to setup this online biz without having a formal company.
So my questions are:
1) I am planning to use CandyPress Shopping Cart, anyone had experience with CandyPress? Or can someone suggest other free, economical and good shopping carts?
2) I know I can go with provider like paypal's Website Payment Standard, which doesn't require me to signup for a merchant account (merchant accounts required my SSN or EID). But the tradeoff is, my customers will have to be re-directed to paypal site to comlete their online transactions.
Do u guys know any other good providers that offer similar service without requiring a merchant account? Or Paypal is so fast the BEST in the market?
As a starter, would u suggest me to start-off with Paypal Website Standard Payment Standard?
3) I found out that some providers eg: Verus or Paypal's Website Payment Pro, will accept my application as long as I have a SSN#. And they mainly use my SSN# to check my credit history. So say if i signup such account, since i submitted my SSN#, will IRS finds out i am running a business without registering a business? A friend of mine said if my transactios are over $400 a year, than by law i should report that as personal income...etc.
You do NOT know what you are talking about. That is incorrect information. Nearly any of the Merchant Account providers on this board, or anywhere in the U.S. at least can ALL offer better rates than Paypal.
Maybe he meant Paypay Website Standard - which does not require a registered business entity to setup? Other providers provide lower rates but they do need my SSN or EID to approve my account.
What's the problem setting up a business/sole proprietorship? Makes you look a whole lot more credible to potential customers, in my opinion.
While I'm not a PayPal expert, I *think* you're going to have to supply them with a SSN anyway. Either that, or you're going to have to supply them with banking information (account number, etc). Either way, the Feds will have a way to track the money coming into one account or another. And they will.
From my experience in setting up an online business, cutting corners when you're just "trying the waters" is not necessarily a good idea. If things work well and you continue, you've instilled in yourself some bad habits that will be hard to break. (Not reporting income to the IRS is not a really good business practice to start out with.) Go after something assuming you'll succeed... you have a better chance of making it and if you don't, then you've learned a bunch of stuff you can use for the "next time."