Legal Question in Technology Law in Texas

Re: How do I start an online business?

If you are going to do this for a living, there are several areas to think about.

Taxes: The income you receive is reportable on your federal income tax return. It sounds like you are operating individually as an independent contractor, which would require your income (and expenses) to be listed on Schedule C.

Business entity: Do you want to work just as an individual ("John Doe"), as an individual who has registered a fictitious name ("John's Website Design"), or a corporation or limited liability company (LLC) ("John's Website Design, Inc.," or "John's Website Design, LLC")? The corporate or LLC form keeps your personal assets from being at risk if your company is sued. The typical choices for incorporation are Delaware (because it gives great flexibility in operation and has such a well-developed body of corporate law) or wherever your company's home state is.

Contracts: You probably will need a contract to submit to potential clients, covering such issues as payment terms, work schedule, scope of work, limitation of liability, and choice of law. You want to make sure that the client does not try to make you liable if the website works fine but no one gives them any business from it.

This is information for general discussion purposes. We would have to have an attorney-client relationship for me to give legal advice. You may contact me directly if you want to pursue this matter further.