What do I need to do to charge for an online service?

[mrzeve]

Hey guys,

So I'm beginning to run an online website where users will have to pay for their organizations to use it.

Are there any kind of tax issues, do I need to establish as an LLC, Inc, etc?

Just want to make sure I have everything in order so when I start pulling in cash I don't shoot my self in the foot.

Thanks.

 

[DipDog3]

Hey guys,

So I'm beginning to run an online website where users will have to pay for their organizations to use it.

Are there any kind of tax issues, do I need to establish as an LLC, Inc, etc?

Just want to make sure I have everything in order so when I start pulling in cash I don't shoot my self in the foot.

Thanks.

Talk to a lawyer?

 

[SrWebDeveloper]

Excellent advice.

But do a little research first, to find out the following before talking to a lawyer or using business sites to help you start one up:

1) Make sure you contact your city, county, and state to see what you
need in terms of LICENSES to sell your specific product(s). In some states, selling intellectual property requires none. But it varies from state to state.

Note: You could do this on your own, it's not hard, but if you want to save time, not money, visit Bizfiling.com and pay $75.00 to use one of it's services which searches out all licenses you'll need based on product/location.

2) Determine how many employees or trusts you will have
3) Determine if you need stock options
4) Who will be the registered agent ( for tax notices, and annual filing notices) - usually you, but could be your accountant

Then talk to your lawyer who to work out if you should be LLC or not and the advantages and drawbacks of filing in Nevada or Deleware to save money on taxes vs. your home state.

-jim