For many years now, most businesses have had some sort of online presence, but it’s common for them to also keep a brick-and-mortar facility as well—if only as a place where employees work together. In recent years however, with changes in the market and the workplace, entrepreneurs may wonder if they need an office outside of the home or a brick-and-mortar facility at all. They may consider opening a business that is online-only.
Starting an online-only business requires many of the same initial steps required for any business. To begin, you should determine the type of business entity you want to create. Whether you want to form a sole proprietorship, partnership, an LLC or a corporation, there are necessary steps and considerations for each business type.
With regards to an online business, you will need to create a unique business name and file the proper paperwork with the secretary of state’s office. Once a name is established, a unique domain name is needed. This will allow your business to operate on-line and guide customers to your site.
Next, you will need to create a unique name for your business, ensuring the name is not already in use. Your website must also avoid defamation. This not only guards you against defamation lawsuits, but it is a good business practice to attract customers.
Other considerations
When starting an online business, there are some initial questions you should ask yourself prior to diving into the process. Depending on the type of business you seek to establish, you may require a specific business license.
When it comes to sales, operations and customer information, it is important to address the collection of sales tax nationwide, obtaining a seller’s permit, creating a refund and return policy, understanding any shipping restrictions, protecting customer data and privacy and the types of payment that will be accepted.
