Looking for some advice please

[lumina]

Hi,

I have an idea for online business and I am looking for answers to a few questions:

Background: The business will be based entirely online, the main concept is very simple, basically I want to bring together people who need a service with people who provide a service. In this case computers. The short story is that on my site independent computer techs will have their own profile and people in different states, cities, and towns, will be able to find them and do business with them. There is a lot more to it, however that is the base idea. Anyway, the only money I will make is from the small fee that the service providers will pay to use my site and possibly from advertising later on.

I assume I have to register such a site as a business, because I will be making money. However, it is not a traditional sales type business so I am not sure what to register as.

Should I register as an LLC? or maybe a DBA?

I would also love to hear from someone who has run a business online before.

Thank you in advance.

[vangogh]

Welcome to the forum lumina. There's no one way you have to register your business. An LLC is a popular business entity for small businesses, however not everyone will be able to take advantage of its benefits.

The main reason people file as an LLC is because it offers some liability protection. If you don't own significant assets like a house though then you may not have much that needs protecting. I think there can also be some tax benefits to being an LLC, but that too will come down to your specifics.

One of our members (David) has put together a great site with information about LLCs and I'd recommend taking some time to read through his Limited Liability Company Center (http://www.limitedliabilitycompanycenter.com/). Hopefully he'll come across this thread and offer some advice as well.

You could file as a sole proprietor, which is really the simplest way to form a business. You'd visit the website for the Department of State where you live and do a search for the name of your business. Assuming it's available you'd fill out a form and pay a small fee to register your business name and you'd be in business. You don't get the same liability protection and you'd be taxed as an individual as you are now.

There are other ways to set yourself up in business, though filing as a sole proprietor or LLC will probably be your best options when starting.

[lumina]

Thanks you so much. I'll take a look at that link.

[vangogh]

Glad to help. The site I linked to has some great information about LLCs and the person behind the site is a member here.