Legal Question in Business Law in Illinois

Question about website business

We are looking to start an online business that sells commemerative items for a famous baseball player. We are directly affiliated with him, and received permission from his team, major league baseball, and himself. We have now created our store (using paypal -paypal.com-), and are just about ready to publish it. I had discussed it with my friends, and they told me that I would need to register my business with the state, and get a tax ID. I pondered that, and thats what im asking you. It would be a strictly web business, no actual building, just run out of the house. Would I need to file with the state to become a business, or would it be fine to run the site without any registration with the state.

Thank you!


Asked on 5/13/04, 10:26 pm

2 Answers from Attorneys
Kenneth J. Ashman Ashman Law Offices, LLC

Re: Question about website business

The answer is: It depends.

Are you operating as a corporation, a limited partnership or a limited liability company? If this is your desire, you will need to create such an entity, which would require involvement of the Illinois Secretary of State and, most likely (depending on the county in which you live), "registration" in the county.

If you are not setting up such an entity, the question is: why not? These entities could be structured such that they are tax neutral to you, i.e., you would pay the same tax whether you operate through such an entity or whether you operate as a sole proprietor or in a partnership. Yet, these entities limit your liability, if set up and operated correctly.

Please feel free to contact me directly should you desire any legal services in this regard.

-- Kenneth J. Ashman; www.AshmanLawOffices.com; [email protected]; 312-596-1700

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Answered on 5/14/04, 1:25 am
Jonas Grant Law Office of Jonas M. Grant, A.P.C.

Re: Question about website business

You need to register to collect sales tax and to be taxed with the Illinois Dept. of Revenue - http://www.revenue.state.il.us/Businesses/faq/bit.htm

You also likely need a business license from your city or county - check these websites for information.

Finally, you should consider incorporating or forming an LLC for your business. If/when you decide to pursue this, please see my website at www.incorporatecalifornia.com for contact and pricing information. I am licensed in California and Illinois. If you were my client for a business entity formation, I would assist you with your other legal business requirements, as mentioned above, as part of the process.

Best of luck with your new venture.

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Answered on 5/14/04, 6:17 pm


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