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Legal Structure for online business

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Legal Requirements for Online Business Ownership

 

Every city and state (and country) has different requirements in terms of business ownership. Most banks require you to have a business license and an EIN (employee identification number) to have a business bank account.  It is best to find out the rules in your area before proceeding. It’s not usually very expensive to get a business license, usually between 20 and 150 dollars to start out. You’ll need to get a new one each year to be legal and legitimate.

 

Apply for a Business License

Most times there are no issues regarding being approved for a business license regardless if you own your home or rent an apartment. If you do not keep inventory in your home, and people do not come to your home to do business, the zoning for home business is a lot more lenient than typical bricks and mortar businesses — so don’t be concerned if you have to fill out forms regarding zoning.

 

Do read your home owners’ association bylaws to be sure that there won’t be an issue, as well as ask your apartment manager before proceeding so that you won’t be disappointed if they say no.

 

Get an Employer Identification Number (EIN)

 

An EIN is very simple to get, and it’s free. Don’t be confused by the title of the EIN. The Employment Identification Number doesn’t really mean you hire other people, but it does identify you as a legitimate business to the IRS and to others who do business with you such as banks, your state, city and county licensing authority, and other businesses. You’ll have to provide that number to your payment processor, bank, and in some cases your clients for tax purposes. This is much better than handing out your social security number. It takes less than a minute to get your EIN online.  Before applying for EIN, look at ??????????????for different legal structures and which one you want to do…….

If you live in a different country please check with your taxing authority regarding your needs.

 

 

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