Legal Question in Business Law in California

The answer doesn't depend upon whether the business is "on line" so much as the form of the entity conducting the business. Is it a sole proprietorship, general partnership, LLC or corporation? If an LLC or corporation, is it formed (or to be formed) in California or elsewhere?

Also, is it operating under the true name of the operating entity, or has it adopted a fictitious business name, also sometimes called a "dba"? If so, it needs to publish and file a statement with the county where it is headquartered.

Corporations and LLCs are "creatures of statute" and don't exist until registered somewhere. If they are registered (formed) in a jurisdiction outside California, they must also register in California, with the Secretary of State, in order to do business here.

An on-line business that sells advertising space would file tax returns and pay taxes the same way as a corner store that sells shoes. Obtain the state and federal forms (or business tax software) and start filling in the blanks.

Proprietorships and general partnerships may begin to operate without registering, except for the dba (if used), but very soon they, as with other forms of business organizations, will need to consider any number of actions that amount to a "registration" of some kind or other, including getting a taxpayer ID number, opening a sales tax account and getting a resale permit, employer-related registrations, and so on.

Starting and running a small business is not a trivial matter, and requires the founder(s) to know a lot of stuff in addition to how to make and sell the product or service. I recommend finding one, or better two different, paperback how-to books in the area of "how to start and run your new small business in California." Try Nolo Press.

Bryan is right - you're asking the right questions, and there's more information that you need to know.

I'm guessing you haven't formed an entity, but are rather simply starting a business. You'll need a business license in your city. Who will be paying you?? If you're being paid as your business name, you'll need to file a dba with the county in which you're located -- without it, you won't be able to open a bank account to deposit checks/receive funds.

You should consult a Business Attorney before you get too far down the road and make costly mistakes. Best of luck with your new venture.