There is no greater freedom for a business owner than being able to choose the number of hours to work and from where to work; this is only possible when you apply technology in business. While the low set up and operational costs are attractive, it is important to follow the law to ensure that that business remains operational. Here is a step-by-step guide on areas where law compliance is required in online businesses;
Structure of the business
Anything can happen in business and people naturally want to be on the safe side of life. A business can either be a sole proprietorship, partnership or LLC. Either of these structures has advantages and disadvantages so it is best to weigh in on each to find out which best suits your individual circumstances.
Name of the business
Any form of business that conforms to the law must have a name. Since online operations are accessible by people from different areas and backgrounds the focus should be in a name that is easy to pronounce and remember. What are the features of a good internet business name?
- Easy to spell
- Conforms to state regulations
- Free of duplication as social media names or domain names
Take this step seriously because it will form an identity for your business. If you think a name is good, get the opinion of friends, relatives and advisors before going ahead to register it.
With the respective state regulations out of the way, it is time to claim your location on the internet. You need to purchase a domain name and hosting package. The most affordable in the market right now are GoDaddy and Bluehost. WP engine offers more dedicated hosting packages and is the best choice if that is what you need. Are you new to claiming your spot on the internet? Get a web designer to help you get started on your first website.
Licensing and sales tax
The collection and remission of sales tax varies from jurisdiction to jurisdiction. If you are selling your merchandise online, you are responsible for the collection of tax on every transaction. Speak to the local authorities to find out legal requirements to apply tax to your prices and how to remit what has been collected.
There is so much hype about starting a business that is based and operated online. While it is definitely cheap to start, it requires a lot of time to prepare and plan. To reap a successful venture, consult as much as possible from online trade experts, legal professionals and financial advisors.