DIGITAL STARTUP SOCIETY BLOG — Going Legit in Your Online Business

Whether you choose to take your online gig legit or not, please understand that there are already laws in place that require you to record all income you make - whether it’s from a job, from lawn mowing, babysitting, a hobby, or working online or offline in any capacity. If you earn a dollar, you’re supposed to report it. Since you are required to record all income (revenue), you are also allowed to record all “ordinary and necessary” expenses, along with the proof you spent that money, if you consider yourself a business. Since you cannot deduct expenses for a...

When you are in business, you automatically open yourself up to lawsuits. If your business is in a lawsuit with an individual, did you know that the individual often gets the benefit of the doubt as to damages done by a business? It’s true, but you can protect yourself if you engage the advice of a professional attorney when necessary. There are three types of lawyers you may need for your online business. You don’t need to pay them every single month to have them on your team, but you do need to identify them, possibly pay a retainer, and...

  When you started your side gig, you may have dreamed of turning into a real business all along. But for some people, they did not dream of business ownership. They just wanted to earn a little extra money, or perhaps they wanted to help pay for their hobby by selling some of what they make, but they weren’t really interested in starting a full-fledged legit business.  The problem is, if your hobby has turned into a business (you’re making profits), you may be required by law to get a business license or permits. If that is true, you could...

When you are ready to find a lawyer, it is essential that you find one who is familiar with the online business world. They also need to be comfortable with the type of business entity you choose.  Get Recommendations from Colleagues  The first place to go to find out who is best in your area is to ask local colleagues about it. If you have not yet met any local business owners, it’s a good idea to start going to local business meetings. Your chamber of commerce might even have subgroups for small home or internet businesses, or there may...

One way that you can set up your business structure is to use a service like Legal Zoom, Incfile.com, and Rocket Lawyer. If you know what you are doing, these services are perfectly legitimate ways to incorporate your business.  However, if you don’t know what you’re doing, and haven’t done your research, you could waste your time and money. By the same token, if you cannot afford any other way, do it this way - but do your due diligence.  The online legal services like Legal Zoom claim to be essential and easy to use services that help small businesses...