Starting an online business is much the same as starting any business. You should go to your local town hall and find out what the requirements are to form a business in your area. Also ask what is required at the state and federal level. In most communities you must register a trade name. If you will operate as a Corporation or a Limited Liability Company other registration requirements are required. Also, if you operate from your home you should inquire about the local zoning laws. All these steps are needed for any business.
Your business will likely fall under the category of a mail order business. Learn about the Sales Tax requirements. If you do not have nexus in another state you can sell and ship merchandise to residents of another state without charging Sales Tax. However, sales to residents in your state will require collection of Sales Taxes and remittance to your state’s Sales Tax Department. The Federal Trade Commission passed a rule in 1975 requiring you to ship merchandise within 30 days of receipt of payment. You must abide by the Truth in Advertising requirements which essentially require you not to be misleading in your ads. For example, when giving a guarantee, you must describe in detail how that will be carried out. It all boils down to the fact that you should operate your business honestly, which, by the way, is an essential key to your future success.
If you are going to be buying inventory for your online business from distributors you should:
- Make sure you are buying from a reputable source.
- Check references and call the Better Business Bureau and Consumer Affairs divisions in the distributors state concerning complaints.
- Try to obtain merchandise on consignment, thus conserving your cash.
- Look into companies that will drop ship on your behalf.
As a reseller you can then offer a larger selection. These techniques can supplement special sales of high mark up items you keep in inventory.
Do a business plan. Visit www.bplans.com. Look at all the valuable resources of information available to you in not only preparing a plan but also to learn how to market your product and how to operate successfully on the web.
Visit a local SCORE and SBDC office near you for free and confidential counseling. Call the US SBA for locations near you.
{ 18 comments… read them below or add one }
Hello:
I have a question. Do I need to pay in any state or local tax on an internet business that my customers order online and then the product is shipped to them and I don’t collect any money from them at all?
If I don’t have to collect any taxes. I wouldn’t have to have a tax ID# would I?
Hi Gladys,
That’s a great question. I would suggest first taking a look at the Nolo website, specifically this page concerning Sales Tax on the Internet.
I would also strongly suggest getting in touch with your local SBDC or SCORE office. They would be very helpful in making sure you have the most up-to-date information for your region.
I have not started my website yet because i don’t know what i have to do inorder to start, also my website is just going to be a database services that people pay a general fee to list there items and search for others so the only money i am dealing with it the general fee. Any suggestions on where i should start, i have the web design background but i don’t know how to do the money part with setting up taking credit cards/debit cards or what all i have to do as in getting a permit and what not first, any suggestions?
Hie i am looking at starting a website that people can get information about events,concerts,seminars and conferences happening around SA.Where people can buy tickets on line and also do cooperate bookings.How do i go about it?
hi , i am ENT surgeon.which type of business i can start on my website?
iyet i have not my website. how can i built and put on internet?
how much it expencive?
what is google cash.com? is it trustable site of google.com or fack site?pl. sand me information.
thanks
i want to open a media website which is interactive. clients pay a fee to access, and i promote events and sell tickets, jewellery and other services. what is the estimated set up cost?
i also want to host it in a fast,reputable and acitve server (reeasonably priced). any suggestions?
hello i am looking to open a site that will b focusing on communication connecting people eg like facebook although my strategy i quite different however i am quite confused on how to go about it
can i in any way talk to Gladys Lacaasse
shee sent a mail i hahe an ansaw too my mail is
seeslinky @ yahoo.com
Amazing software, very important for every people to start their business.
helo,
I am a Kenyan (U.S President’s-Obama country of birth)can you please tell me how can I earn cash by having a website for tourists who should log in and get nice places to visit in Kenya and maybe give them a little more information on what they expect when they come here???
i wenna launch my company specialized in E-marketing solutions , i need to lunch a website focus on advertisement ,free advertisement for all people in Palestine , the advertisement include : mortgage , cars , employment , goods and services , …etc , have any one of you an experience in this business module .. plz sent to my email
It is really very important to find out all the small issues before you start something.
hey am looking yo open up a business on electrical appliances Tvs ,stereo,DVS, COOKERS ETC FOR SALE. In UK Where and which companies shoud i coborate wiyh so as they can sell me second hand equipments?
What are the requirements for starting opening up a business web site
Hi i want to start a mail order business marketing and selling how-to information about starting your own business on line, also electronics. How would i get started, what would I need to do. I have little internet skills at this time. Can you help me?
ok what im looking to do is open a small pet store online nothing to big i plan on it growing but i need help getting it start i need to know about the business lic and also how much i have to pay for it i live in il
I am looking for a website designer for a site I would like up by the end of the year. I am looking for someone to do it for free. I know thats a bit much but I am unemployed at the moment. I can pay for domain registration and hosting.
Heres the info on the site idea : Real-Time Public Billboards
The mini pitch: “Your ad anywhere. Right now.”
What it is: A network of billboards, news stands and projectors linked to a single website that allows regular people just like you to place adverts in public spaces. Think of the “one million pixel” site but outdoors.
How it works: You register, upload your advert, choose a location, hit go and see a live webcam feed of your ad displayed in any public space in the world.
Why it’s hot: The cost of billboard advertising is prohibitive to most small businesses and individuals. A public, global, mini-billboard network of ads for regular people and businesses that updates at the click of a mouse could earn megabucks. Make it work, and I’m sure Google would want a word with you too.
Where the money is: Simply charge a flat fee or monthly recurring cost to place an ad. You could split your electronic billboards and projectors into small segments, or sell the whole space or network to one advertiser.
Starting online business is much easier than the offline business, online you don’t need to rent the office and pay salary to other people. You can start your online business alone and develop it little by little. Besides it is much easier to get more traffic and make more sales online than offline. It takes about 1 year to develop the online business and about 3 years to develop the offline one.