Legal Question in Business Law in California

Operating Small Buisnesses Online, Licensing and Taxes Help

I am 17 years old and would like to start an online retail buisness of tangible items and I live in California.

I would like to know all the legal requirements I would have to go through (such as licensing) and was wondering if I could buypass them because of my age (This is hopeful thinking)

I do not plan to ''make it rich'' or even make a lot of money, this is more for a hobby of mine.

So, what would I need to operate a small online buisness w/ me as the only worker? How do I obtain these and how much does it costs?

Thanks alot!


Asked on 3/28/08, 2:41 pm

1 Answer from Attorneys

Terry A. Nelson Nelson & Lawless

Re: Operating Small Buisnesses Online, Licensing and Taxes Help

"All the legal requirements"?

How long do you have and how much do you think you will have to pay for the legal help required to properly represent the company in accomplishing ALL the things it needs to do?

If you incorporate, you'll have: corporate filing and Articles and bylaws, stock issuance and notices and registration. With or without incorporation: you'll have registration with city and state and federal agencies, business licenses, dba filings, tax ID #, bank accounts, state and federal taxes, sales tax withholdings and payments, workmans comp insurance on any employees, liability insurance since homeowners insurance doesn't cover business use, etc.

Now, if all you're talking about is an eBay store with odds n' ends, then follow eBay rules, and the sales and income tax and business licensing rules. Go visit your local city business license department and ask them to point you in the right direction of other agencies you have to deal with and follow all their rules. They generally have handouts and summaries.

Once you develop to the point it is a real business, then you need to deal with all the listed issues with legal and tax advisors. Feel free to contact me if you get there.

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Answered on 3/28/08, 6:07 pm


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