Setting Up an Internet Business

For some reason many people think that running a business on the Internet is different from doing so in the real world. Many people are tempted to just set up shop and start dabbling in commerce.

I would like to give you a word of warning. Before you engage in any business, you need to think about possible legal issues. It’s highly recommended that you set up either a corporation or a LLC prior to engaging in business on the Internet.

Why? The main reason is protection. If you operate under your own name—D.B.A., partnership, sole proprietorship—your personal assets are at risk. However, by forming your own corporation or LLC, you limit your own personal liability.

Setting up a corporation or LLC isn’t too complicated, and it isn’t costly either. For instance, you can set up a LLC in Nevada for about $250—depending on your situation. If that seems like a small fortune, just think about what you have to lose.

You don’t need to live in the state you set up your company in. Nevada is a great choice, because of the lower fees and lack of taxes. The Nevada Secretary of State’s website has everything you need to setup any type of business entity desired.

Next in this series, I will go over how to set up a Nevada LLC. I will also be showing you how to set up a basic Internet business quickly—bank account, EIN and so forth.