Legal Question in Business Law in California

internet business

If someone has a simple website, is it necessary to get a business

license. this particular website sells for another company. I do not

have to do any inventory or shipping they handle it, I simply do the

sales. They collect the taxes on the mechandise and I simply get

commission. If I don't get a business license will I get into trouble

or can I operate it without a license?


Asked on 8/07/02, 11:49 pm

2 Answers from Attorneys
Martin Snitow

Re: internet business

It sounds as though you are an outside sales person rather than an independent business. What complicates this are the special rules that apply to outside sales people under the wage and hours laws. You are not a typical employee but you may still be an employee on commission.

You probably do not need a business license. If you want a definitive answer you should have an attorney review your arrangements with the other ocmpany.

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Answered on 8/08/02, 1:49 pm
Timothy J. Walton Internet Attorney

Re: internet business

I would like to add that if you are in business for yourself, your need to have a business license depends upon the ordinances of the city in which you run your office. Typically, they are not expensive, and they may help in showing the IRS that you have a legitimate home office.

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Answered on 8/08/02, 2:15 pm


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