Starting a new online business is no longer a paperwork nightmare. Thanks to the adoption of technology, you can start a business with very little capital. In this article, we will provide you with the important steps to follow to ensure your new venture has a smooth sail.
If you opt for a sole proprietorship, there is no paperwork. But the downside is you have no protection from liability. Forming a limited-liability company or a corporation is a better alternative.
Location and name
Each state has its own tax laws so choose your state of incorporation. Before you put in the paperwork, come up with a name for your new venture. Ensure you do not infringe on anyone’s existing trademark. Check to make sure a domain name with top-level TLD is available with that name.
Set your financial house in order by getting federal tax id. Open a bank account and a merchant account to process transactions. If you are going through the sole proprietorship route, you can use your social security id to set up both the accounts.
Tax and Licensing
Get requisite licenses for your business and if you are selling products, get your tax id from the state to file sales taxes.
Once you have a domain name, you need to get a hosting account and create your website. You can do this on your own or outsource the whole setup. Integrate a shopping cart with your merchant account and create a distribution system.
Once it is ready, beta test your website to ensure visitors have a smooth flow from the desktop and mobile.
Use SEO and monitor
It will take a while for your site to get visitors. So, start social media and SEO campaigns to attract potential customers.