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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 118772
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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Im starting a sole proprietorship online business. What are the bare bone essential

Resolved Question:

I'm starting a sole proprietorship online business. What are the bare bone essentials I must complete to make it legit?
Submitted: 6 years ago via Nolo Press.
Category: Business Law
Expert:  Law Educator, Esq. replied 6 years ago.
For online businesses there is very little to do to actually make it "legit." Many people just operate the business without registering anything and do so for years and simply claim their income on their income taxes. A sole proprietorship is by definition is an unregistered business entity so for online business there is little to no formality required. If you want to form a corporate entity, a Limited Liability Corporation which is simple to form online with your secretary of state's office and you can then get a tax ID from the IRS website for your LLC and then you can operate the site under the LLC, but that is a bit more than bare essentials.


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Customer: replied 6 years ago.

If I ever need help, can I hire someone under a sole proprietorship, pay them, and still file my income taxes the same way? Or would I have to start an LLC the minute someone else is working for me?

Expert:  Law Educator, Esq. replied 6 years ago.
Yes, you could hire someone as a sole proprietor, but then you have to pay employment taxes and workers compensation insurance on them in compliance with the law.
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