Your Questions About Business Online Services

Joseph asks…

What Kind Of Business License Should I Get?

Hello,
I am a freelance content writer for the web. I operate strictly online and service clients from all over the USA. I just started offering services at the beginning of January 2010 and I want to know what type of business license I should get or do I even need one?

Also I live in California and the business is run and operated by myself only.

Please give real information and do not post websites. Thanks!

Jere answers:

I do something similar and also started in January for tax purposes. At most, you’d need a federal EIN number. You can get it free online. Some vendors require one. Then you’d be able to open a business bank account with a name, such as American Freelancing or such.

Daniel asks…

Im 15 years old and I want a business career?

Hello,
I am 15 years old and I want a business career, I feel I should take advantage of technology and kick start my business online at first, any ideas or help of what businesses I can get myself into online, websites etc

And any more information would be great,
Liam.

Jere answers:

You really need to ask yourself a lot of questions

what experience do you have
What qualifications do you have
You will need skills and knowledge about your product or service
you will also need money to start up any business
how are you going to market it
who are your potential customers
what can you offer that is better or more unique than your competitors

Do you homewor first, and then see what you some up with

Robert asks…

Is there any way to add my old digital copy dvds to an online account like Ultraviolet or Sony?

I have a bunch of older DVD digital copies, and I was looking at my Ultraviolet account, wondering if there was any way to add these physical copies to an online service? I know Vudu/Walmart does, but for $5 for HDx. Even at $2 for SD this could get expensive. Any other options?

Jere answers:

You could use an on line file storage service like Justcloud: Moxy; Carbonite etc…most of these are used for business back up things like that but files are files so I don’t see why you can’t store video on these as well, some are paid services and some are free the free ones usually offer less storage more advertising and less features, some have a basic free service and if you want more you then have to pay just like a lot of other free programs available…

Charles asks…

Are consulting fees for my business tax deductible?

I have a business that needs online marketing services and I found an independent consultant who is capable of handling the work. She charges a monthly fee. Is this fee tax deductible?

Jere answers:

Yes it is. Marketing is a valid business expense.

George asks…

What all legally is involved with e commerce?

I am wanting to open my own business online selling things I make, up cycle, & buy online to resell.
What do I need to do to set up my business legally besides LLC it? Do I need to obtain a license to do what I do? Trademark? Register my name? Help please ?

Jere answers:

You don’t generally need any license to “open” an online business. As a sole proprietor, you would simply file a Schedule C on your federal tax returns for business profits, using your personal SSN. Local zoning may indeed restrict the types of “at home” business you can have, but usually only if there is some external impact to the “health, safety or general welfare”, or a specific regulation for purposes of extracting a fee or collecting statistics. For instance, if you “do business” in a residence, it doesn’t necessarily convert your “occupancy” to “mercantile”, which requires fire inspection.

Some states require you to obtain a “seller’s permit” once you start selling things that are taxable, if you’re selling to people located in your own state. If you only sell to out-of-state buyers, you have no legal obligation to collect any sales tax and therefore may be exempt from having such a permit.

Some states also allow you to avoid paying sales and use tax on your own “stock” that you purchase locally, provided it is for resale. You apply for a resale certificate in your state.

If your online business name does not include your surname, your state may also require you to file a certificate with your personal identification, indexed under your business name, sometimes called a “d.b.a.” or “fictitious name” registration so customers and tax authorities can find you, if necessary. Some states require you to register at a state office, others at a municipal office.

Trademarks in the USA are not generally registered. You obtain trademark rights simply by being the first to use a distinctive brand on your particular goods or services. You can optionally register your brand in one or more states or in the federal USPTO, once you have proof that you are using it. Your registration is only valid for as long as you (or a successor) continue to use the brand.

You do not need an LLC or corporate entity to do business, although there are tradeoffs in limited personal liability and accounting/management complexity. If you do form a new entity it will need its own tax number (EIN), bank accounts, tax filings, meeting minutes, etc. Be very careful about how you deal with entity property versus your personal property, including the domain name and any trademarks you have.

If you have specific questions about any of these, for your particular state, feel free to come back with more new questions and perhaps someone can help point you to the right information.

Edit: To contradict some of the information in the @elegance answer: you cannot register any trademark until you HAVE a trademark. An LLC name or company name or domain name, by itself, is not registrable as a trademark; it is only a trade name or functional identifier.

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