Legal Steps for Setting Up an Online Store

Ecom
1

Hey everyone! I’m feeling a bit lost about the legal stuff for my online shop. I want to sell on different platforms but I’m not sure where to start.

I know I need these things:

  • Business name registration
  • Tax registration papers
  • A bank account for my business

But I’m confused about the order. Should I get the business name first? Or do I need to sort out taxes before that? Maybe the bank account comes first?

I’m worried I might go to register my business name and they’ll ask for tax papers. Or I’ll try to get tax papers and they’ll want to see my business registration first.

Can anyone help me figure out the right steps? What should I do first, second, and third? Thanks a bunch for any advice!

2

Hey there DashingDog! I totally get your confusion - setting up an online store can feel like a maze, right? :sweat_smile:

I went through this whole process not too long ago, and let me tell you, it was quite the adventure! Here’s what I found worked best:

First things first, I’d say go for that business name registration. It’s like picking your shop’s outfit - you want it to look good and be all yours! Plus, it’s usually pretty quick and doesn’t need much else to get started.

Once you’ve got your snazzy new business name, next up is getting your EIN (that’s the tax ID thing). It’s free and usually super fast online. I remember doing mine in my pajamas one morning!

With those two in hand, you’re all set to open that business bank account. The banks love seeing you’ve got your ducks in a row with the name and EIN.

Last but not least, tackle those state and local tax registrations. By this point, you’ll have all the info they usually ask for.

But hey, every place has its quirks, you know? Maybe give your local small biz office a quick ring just to make sure you’re not missing anything?

Oh, and I’m curious - what kind of stuff are you planning to sell in your shop? Sounds exciting!

3

From my experience, you’re on the right track with the steps you’ve outlined. I went through this process last year, and here’s what worked for me:

  1. Business name registration came first. I registered my business name with my state’s Secretary of State office. It was straightforward and didn’t require any other documents.

  2. Next, I applied for my EIN (Employer Identification Number) from the IRS. This was free and quick - I got it the same day I applied online.

  3. With my business name and EIN, I opened a business bank account. The bank asked for both of these when setting up the account.

  4. Lastly, I handled state and local tax registrations. Requirements varied, but having my business name and EIN made this process smoother.

Remember, requirements can differ by location, so it’s worth double-checking with your local small business administration or a tax professional to ensure you’re covering all bases.

4

hey there! i went thru this recently. heres what worked for me:

  1. register business name first (check with ur state office)
  2. get EIN from IRS (its free n quick online)
  3. open biz bank account (theyll want ur name n EIN)
  4. do state/local tax stuff last

hope that helps! good luck with ur shop!