What if I told you that you can start a legal online business today?

Have you come up with a really cool concept and want to start an online business? Maybe you are just tossing around the idea and not sure where to start?

I am talking about getting the legal aspects in order not putting together a business plan or coming up with marketing strategies, that can come a bit later. What I want to discuss is how to start a new online business legally according to Federal, State and Locality in the US. 

The extra income would be nice; however, you have no idea what steps to take to legally start an online business and convinced it would take forever to get all the necessary paperwork taken care of to be a legitimate business.

I know some people like me just dive right in and start creating their own online business or maybe you created a fun hobby site and found that you are able to monetize it and start making money from your hobby. What’s next?

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Here is what happened to me, I built a website and found the perfect product and vendor and started filling out the form for the vendor in order to start making sales. Further down on the vendors form I found that I needed to put in my EIN number or a sales tax certificate.

I had never completed this step and was not ready for the legalities of the business world, I should have done my research in finding out How to start a new online business and put all the legal paperwork in place before trying to make money. “Whoa Nelly”, now what?

Are you like many people, procrastinating to and unsure how to start an online business because of all the legal paperwork and not ready to take on that burden?

Many people think starting an online business is shoulder-deep in paperwork and just don’t feel they have the time or knowledge to get everything accomplished.

I know several people have told me they just don’t know how to start a new online business and go about getting all the aspects of a legal business in place.

I know I thought there was a lot more involved in starting an online business that what there really is. After I found out that it was a piece of cake I wanted to help you get started in legalizing your own online business and take that plunge in a real online legal business.

Go ahead, let’s jump right in and we can have it completed in one morning or afternoon and you will be on your way to starting a successful business and becoming that entrepreneur that you have dreamed about.

Determine A Name For Your Business

The first thing that you will need to determine is coming up with a business name, don’t overthink this as it does not have to be anything perfect; in fact, I wish I would have just used my name such as Dena Briley Enterprises or something of that nature to start off with.

Business names can always be changed, or you can always use the d/b/a, which is doing business as, when you decide on a name for your business.

Get Your Employer Identification Number (EIN) In Minutes

So, now that we have a name where do you go from there? First off and most important, if you are in the US, you will need to simply go on-line and get a business EIN Number.

Generally, you just go to the federal website and fill out the information and boom, you have your EIN and ready for the next steps, it is really that fast.

The reason for securing an EIN is you are required to have one if you decide to become a partnership, LLC or Corporation. If you are going to establish your business as sole proprietary, and EIN is not required; however, because it takes just minutes, I would suggest getting one anyway.

The main reason for a small business owner to get an EIN is so you don’t have to put your actual social security number out there. I know I don’t like giving my social security number to just anyone.

Get Your Sales Tax Certificate From Your State

The next step is to check your States website to find out if you will need to charge sales tax and see if they have a form to fill out for a sales tax certificate.

I know in the State of Kansas, all I had to do was go online fill out a form, provide my EIN and they mailed it to my address I provided while filling out my form and, in a few days, I had my sales tax license.

I found that if I sale anything to anyone online in the State of Kansas that I will have to collect sales tax, I know other States have different policies and it also depends on the type of business you wish to create, so best to check it out and keep it legal.

Register You Trade Name

This is normally at the State or Locality level so there are not a bunch of businesses claiming the same name. This may or may not be required to move on; however, most times you will be approved immediately.

Secure any licenses that you may need

Continuing on, give your County or City Hall a call and see if there are any licensing or registration that is needed and find out how to secure those forms to file for your particular county, city or locality.

Depending on what you find out, check with them to see if that is something that can be completed online or if you need to jump in the car and go there. If it is online fill out the forms required and jump into the next step to get your online business legit.

Start a Business Checking Account

Moving on to the next step is go to your favorite bank and get a business account started.

This is important as you will need to have an account that you use strictly for business, it makes tax time much easier and keeps funds produced and spent by the business easier to explain if you are ever audited. Mixing personal funds with business funds is not a good idea when having your own business.

Put Together a Simple Spreadsheet

Starting the accounting process is quite easy and you don’t have to have an accounting decree or fancy software to get started. Simply create a spreadsheet where you can record any sales or expenditures related to your business.

You will have plenty of time in the future to switch over to something else, in the meantime this works quite well and will keep you on track and legal.

So now in a mornings time you have resolved all the legal mumbo jumbo, from the state level to your locality and finished everything, Now the question of how to start a new online business is a thing of the past and you have become that entrepreneur that you have always wanted to become and on your way to building something amazing.

Now that you have everything in order, Don’t forget to subscribe and download my Free Business Plan Template and put your successful roadmap together.

Have you got your legalities in order? How did it go? Let me know in the comments below or if you have a question you can post that and I will get you an answer.

I think it is time for lunch, want to join me?