Internet Business License & Legal Documents

Lesson #3

Business License & Permit Information

Staying legal on the web has become a necessarily evil, but to protect yourself and your business you really need to know what is legally required.  

- Do you need a Business license?

Many folks operate online without a business license but my recommendation is that it's a good idea to have one.  Check into this carefully with your city/state because you don't want to conduct business illegally.

• Federal Trade Commission(FTC)
• FTC International
• FTC Canada
• Business Permits and licenses

- Seller's Permit

If you sell your own products you'll need a seller's permit or 'Certificate of Resale' which is different from a business license. You need this even if you are selling goods and services that are exempt from sales tax.

Sellers permits are distributed by state. To apply for a sellers permit simply type into your favorite search engine your state and the words 'sellers permit'. For example: New Jersey sellers permit 

- DBA or Fictitious Name

You can register a fictitious Business name with A DBA or (doing business as).   It's not required but there are a few benefits:

• You can accept checks written out to your business name.
• Give yourself a more professional image.
• You can prevent other businesses from using the same business name as you
• You can operate with a bank account under your business name. 

Here's where you can get started filing
 
  
- An Employer Identification Number (EIN) or Federal Tax Identification Number

All businesses MUST be identified by a Business Tax ID number.

If you don't have an EIN, you will have to use your social security number which is an option however I don't like giving out my SSN. Also I find it much better to keep my business and personal tax information separate.

I personally have set up an EIN number and a DBA (Doing Business As) with a fictitious business name.

Here's where to apply for an EIN

Important Legal Documents

Internet marketing is "coming of age" and catching the attention of Federal Regulators and Credit Card companies.

There's nothing wrong with that...it was bound to happen sooner or later...BUT, as internet business owners, we have to be ready.

We've all heard it before, ignorance of the law is not an excuse.

You need to get your websites and business in compliance and you need to help your customer's get their websites in compliance. Non-compliance could cost you your entire business.

"There are actually laws in place right now that require you to have certain legal documents in place, so to avoid putting your family and your business at risk it's advisable to review the legal documents needed." 

===>  Here's more on keeping your business legal.

 ===> Lesson #4 -   Finding Internet Home Business Ideas

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