How to Start an online business

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A lot of people want to start up an online business but do not know how.  To be recognized as a legitimate business you need to do several things.

1.  Register the name of your Business with your State Dept of commerce.  This will protect your business name so that no others can use it.  To do this go to your state name .gov.  Just look for areas about doing business in your state.  There will be a fee charged, but it is money well spent

2.  Go online to the IRS.gov site to obtain a Employer Identification Number (EIN).  Even if you do not have employees this will make your business a professional entity and it will keep you from using your social security number on tax and license documents.  There is no cost for this number. This unique number will give you credibility.

3.  If your state has sales tax then go to your state.gov and apply for a sales tax number.  This will be required. As the law stands now I only collect sales tax on products purchased in my home state.  You should not be charged anything for this account number.

4.  Go to your local city or town government and obtain a home business license.  You will need the registered business name, EIN and sales tax number to get a business license.  There will be a fee for this license./

5.  Keep accurate records.  I use Quickbooks.  Quicken Home and Business also will work.  There are other software packages you can choose from. 

6.  Don't be afraid to use the IRS rules on claiming a home office deduction.  Even if you do not use your room/ office all of the time for business you can still claim deductions for the space occupied, computer, printer, supplies etc.  I would suggest that you use a income tax software to file yearly tax returns.  Most of them will have the ability to determine any deductions available. to you.

7.  Get a PayPal account. It is a safe way to receive and send money over the internet.  www.paypal.com

8. Find a source of products to sell or have dropshipped for you and enjoy your profits.

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