Legal Question in Business Law in California

Re: Internet business startup

If you are truly going to conduct your business as a general partnership, I'd suggest a written partnership agreement. You'll need to check with your cities (or counties) about business licenses. A license may not be needed in a municipality where no money is received. If the business operates under a d/b/a, you'll need (at least in California) to register the fictitious name with the county clerk's office. If you have employees, you'll need to get a Taxpayer ID Number from the Social Security Administration.

If you incorporate or wish to operate as an LLC, there are formalities such as a filing with the Secretary of State.

You'll need to keep books so you can file the appropriate income tax schedules or returns with the IRS and the states in which you operate.

This is a partial list covering the most obvious requirements. There may be others. Obtain and read a couple of books about starting an operating a small (start-up) business. There are many available.