Legal Question in Business Law in California

Re: Internet Business

You will probably, but not necessarily, need a local (city or county) business license. Local ordinances vary, so it is not possible to say with certainty.

Generally, you will not need a product-related license, but there are exceptions, e.g. alcoholic beverages and prescription drugs.

Whether you need a resale permit and tax account with the franchise tax board may depend upon whether you collect, or are responsible for collecting, the retail purchase price. If the money passes through your hands or you are involved in invoicing or billing the end user or responsible for any unpaid invoices, you will need a resale permit and sales-tax collection account.

Whether you incorporate, form an LLC or do business as a proprietor may depend upon the projected size of your business and the financial risks. Corporations and LLCs involve costs and complexities not faced by sole proprietors, and insurance is an alternative way to protect against some kinds of public liability. If in doubt, ask a business lawyer for a free initial consultation.

Re: Internet Business

There are a few things you should do. Incorporate in Nevada or New Jersey because there is little if any tax liability. Then, you'll get a business license for that state. Then, you can place all orders you want via the internet. If need be, you can use a po box address in Nevada. You should also have a clear policy published on your website regarding return of merchandise. For instance, there are alot of business that require you to go to the manufacturer for complaints or return of product. You can have the purchaser acknowledge and agree to something like this prior to finalizing the sale. If you would like to discuss the foregoing in more detail, please do not hesitate to contact me. Good luck and thanks for inquiring.

Re: Internet Business

Thank you for your posting and your inquiry.

At minimum, you will need a local business license, and both the state business and professions code, contract law, and federal intercommerce laws will apply to your business. You may also need a sales tax license.

Additionally, I highly recommend you incorporate. I've incorporated several internet businesses, and some have found that is the best thing they could have done once the inevitable lawsuit comes against you.

I hope that this information helps you, but if you have further questions, want more information, or feel that you need legal representation, please feel free to email me directly at [email protected]. It's my pleasure to assist in any way that I can.