Legal Requirements for New Internet Business

What are the essential legal requirements to start a business?

- Choose a type of business you want to start.
Sole Proprietorship
General Partnership, Limited Partnership
LLC (limited liability company)
C Corporation, S Corporation

- Choose a business name.
How can you choose a good business name?

- Choose accounting period and method.
The choices for accounting period are calendar year and fiscal year. Fiscal year is an accounting year that is used to calculate annual financial statements in business. Taxation laws require accounting reports generally once per every twelve months or once per every 52 or 53 weeks, but the year isn’t required to be the same with the calendar year.

Accounting method can be cash-basis or accrual-basis.

- Get business licenses.
Most state, county, or city governments require business owners to acquire business licenses. Most cities actually call it “business tax” and the fee can vary from $30 to $150 in most US cities.

Federal business license is typically required for highly regulated business such as drug manufacturing, sales of firearms, interstate truck business or meat preparation companies.

- Get necessary business permits.
Not all business need to obtain permits. In general, permits are required to regulated safety. Here are the types of permits that business owners should look into to see if they need to obtain them.

Seller’s Permit: for business that does resale
Health Permit: for business that prepares food
Zoning Permit: To show business site is properly zoned
Building Permit: For remodeling or building a commercial building

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