What do I need to do if I would like to start an internet based resale busines from my home?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What do I need to do if I would like to start an internet based resale busines from my home?
I have been doing some reasearch and am unclear as to whether I need to file as an LLC or sole proprietorship. And I don’t know what kind of lisencing that I will need. Where can I find this information for my area? Am I missing something? Is there a better way to about this?
Asked on February 5, 2013 under Business Law, Arizona
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
The best thing to do is to consult with a business attorney, who can discuss your plans, evaluate the options, and help you then set up the business in the proper way. Note that you do not have to set up as either an LLC or a sole proprietorship--it is your choice how to structure your business (you could also set it up as a corporation). There are advantages and disadvantages to each business structure, which an attorney can help you understand; that said, without even knowing any specifics of your situation, I would recomment against being a sole proprietorship. As a sole proprietor, you are personally liable for all business debts--e.g. loans; or judgments if you are sued by a customer or otherwise. Setting up as an LLC or corporation will protect you from most business-related liability (and conversely: protect your business from much personal liability or debts).
If it's not worth the cost to consult with an attorney to set your business up right, it's probably not a worthwhile business.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.