Urgent !! how to LEGALLY open ecommerce site

by serdok
7 replies
  • |
hey guys,
NO ONE in the whole warrior forum explained how to open up an online business or any type or ecommerce site (not a personal site)..
to open up an ecommerce site, you need at VERRY FIRST consider the legal stuff before jump to the building and designing your site (which is very easy in nowadays with softwares and plugins,..etc).
because if you run a profitable site using a business paypal account (for exemple) as a shopping card merchant means you are gaining money which it means you need to be legal business with legal tax papers and stuff like that AND file out your IRS tax income including your online earnings...etc.

my question is:
what is the exact steps to open an ecommerce like fiverr like site (for exemple) ?

between, I really wonder how all those people who launch a profitable websites to make money online without registering their business legally and they don't get banned or get charged like On February 25, 2010 the FTC announced a settlement with ControlScan.com of FTC charges that ControlScan had misled consumers about how often ControlScan monitored websites, including steps taken by ControlScan to verify the websites' privacy and security.
#ecommerce #legal advice #legally #open #site #urgent
  • Profile picture of the author ShoppingSignals
    The "exact steps" to open an ecommerce site vary widely depending on your needs and business goals.

    However, it's important to note that in the US, you can run a business as a sole proprietorship. You do not even have to file to be a sole proprietorship. The IRS presumes that you're a sole proprietorship unless you file otherwise. Of course, your assets are not protected as they would be for an LLC or S Corporation, but it's certainly the easiest way to set up a business. And, you can always transform your business into a separate entity once you begin making some money and can validate that it's worth the time and expense. I think this is what most people do when starting out with any kind of money making website. You just claim any extra income on your tax return and get back to business.

    Now, if you insist on covering your ass up front (see what I did there)... You can set up an S Corporation or LLC for nothing more than the IRS filing fee. I know, I have done it. I set up an S Corp. for abut $90 bucks. No lawyers, no business plans...just some Googling and the IRS fee.

    Hope that helps.
    Get a FREE Conversion Optimization Consultation. No B.S. No upsell. Beta service needs testimonials!.

    - Check Here For Details -
    {{ DiscussionBoard.errors[9262239].message }}
    • Profile picture of the author serdok
      thank you very much ShoppingSignals you really clarified it to me
      so basically I can run my e-commerce site claiming in my privacy and policy and terms of use that is a sole proprietary and to just include all my earnings from my website to my regular job's earnings and file out the total to the IRS in the end of the year
      and since I will use paypal, then I can just collect all my earnings data from my paypal account in a Excel file or doc file or whatever and file out my taxes of my day job including these earnings from my website
      Am I correct ?
      {{ DiscussionBoard.errors[9262300].message }}
      • Profile picture of the author mikehermy
        Sorry, only saw this just now. We have an amazing article about this topic specifically. It goes into the details of all of your options and the pros and cons of each. http://storecoach.com/source-product...iness-entities
        {{ DiscussionBoard.errors[9262733].message }}
        • Profile picture of the author serdok
          thank you guys for your great help
          really appreciate it
          {{ DiscussionBoard.errors[9264881].message }}
          • Profile picture of the author celestmark
            Why not just get your feet wet with Azon FBA?? Yeah, you'll need to get your legal name situation, but Amazon is still (successfully) fighting the states on collecting sales tax until it becomes a fed mandate.
            {{ DiscussionBoard.errors[9264907].message }}
  • Profile picture of the author Trankuility
    I run an ecommerce site that sells physical goods (Women's MMA and Boxing Gear).

    As Shopping mentioned, the exact steps will vary on your state/city/county regulations. But here's what I had to do for my Sole Proprietorship and Resale License, as best as I can remember:

    Went to city website and filed for a business name. This only allowed a part of the process. For the second part, I had to actually go into the city office and speak with a rep. She then gave me some paperwork to fill out.

    I then had to fill out the forms and go to a Tax office in a completely different city. Had to get them to sign the paperwork. They grilled me on what I planned to do and how much tax I was expected to pay. They signed it then told me to go back to the previous city and turn in the signed paperwork.

    So I went back to the first city and turned in the paperwork. But not finished yet. They then told me I had to go to the County office so I could apply for the business name. So I went to the county office and applied. They gave me more paperwork, I paid a fee, and they told me I had to put an ad in the newspaper declaring my intent to operate a business within the county and it had to completed with 30 days. Once completed I had to get paperwork signed by the newspaper office.

    So I got that done then had to go back to the county office and turn in the paperwork showing I ran the ad. They signed off and told me had to return once more to the first city office and get some more paperwork signed. So I did that too, paid another fee, and finally was done. Whew!

    Huge pain in the ass. And that was just the start. Then you have to go through the process of setting up your shopping cart, shipping, taxes, inventory, etc.. ****, it's crazy haha. Once you get through all that it gets better. But it sucks when you're going through it!
    {{ DiscussionBoard.errors[9262289].message }}
  • Profile picture of the author IMStrategus
    just register an llc and your good to go

    I lie on marketing forums. Social media is for fun, pics & hook ups.

    {{ DiscussionBoard.errors[9265165].message }}

Trending Topics