How to Set Up an Online Business – Structure and Legal Aspects |

Setting up your own business will always give you some important matters to think and study about. Businesses have different structures that you must be familiar with. This applies to both putting up your business in your actual community and having it on the internet world. Along with business structures come legal issues that you have to deal with at the present time or in the future. So this is one fundamental truth in knowing how to set up an online business.First, let us talk about business structures.1. Sole-Proprietorship. A very common business structure. This simply means that you own the business and nobody else does. All the assets and responsibilities came from you.2. Partnership. Just from the name itself it tells you that a business is owned by two or more people. These people who agreed to be partners will share profits, losses and liabilities etc at all times.3. Corporation or Limited Liability Company (LCC). It is a fresh concept of business and a much more complex structure. Amazingly, this is recognized by the law as having the same rights and responsibilities of a real person. Therefore, this kind of business has its own tax to pay and complexities to handle. Especially, there’s the double taxation problem. If you are wondering what’s with double taxation, it means that you have to pay tax on both the profits earned by your corporation and the income you gained as an individual. Aside from this, your corporation needs to pay a yearly tax on all outstanding shares of stock.

4. S Corporation. It is similar to LCC but doesn’t have double taxation. The Internal Revenue Service (IRS) allows this kind of corporation to be taxed as a “partnership” and not as a corporation. But, for you to have the S status, your business must achieve the 3 prerequisites proposed by the IRS. Number 1: limited number and type of shareholders in the business. Number 2: limited stock issued. Number 3: limited sources of revenue.The aforementioned different structures hopefully give you an idea on what business concept suits you best.Next, let us talk about legal issues concerning how to set up an online business. Frequently asked questions when it comes to putting up an online business are: “When do I need a lawyer?”or “Are the legal aspects still the same for old-fashioned businesses and online businesses?”. Let us find out.As mentioned earlier, there are different structures you can choose for your business, and when it comes to deciding what structure you want certain legal matters need to be addressed. Say for example, you decide to have a corporation. In this case, you have to know the legal benefits as well as tax implications of your business. Remember the difference between LCC and S Corporation? Well, that’s what we’re talking about.There are also other factors you should consider, like patents, trademarks, and copyrights. You have to be careful because intellectual property is a domain you should be aware of when building a business, and it’s even more important when you want to learn how to set up an online business. For instance, you have to be careful while choosing a website address for your business’ online presence. Make sure not to use a copyrighted or trademarked phrase. Always aim for originality!Next are licenses and contracts. If, by any chance, you are about to sign a contract or other physical document never sign without reading it. I know that it might sound like an obvious advice, but tell me, when was the last time you read the iTunes license agreement before hitting the “I Agree” button? Exactly. If you do not clearly understand what the terms and conditions are regarding the contract, or if you have any doubts whatsoever, then you have to call your lawyer and ask for assistance.

Last but not least, it’s good to get some knowledge regarding internet specific law. You can find lawyers specializing in such a field widely in your state. But just to give you an idea on what this is about, internet specific law is a field that covers not only the issues of intellectual property, but also legal matters that deal with domain name licensing, trademark violation or infringement of such right, “cybersquatting” (which means the illegal registration and use of a domain name based upon another registered trademark) and all other legal problems that are found online.Now you know some facts and important considerations that you have to remember when you want to learn how to set up an online business. After you make the decision on what business structure suits you best you can start working on the business itself, which is the real fun part.

Best Online Business Ideas in 2013 |

The truth of the matter is that the best online business ideas are really the most simple. If you are new to online business, or even if you do know your way around a little bit, you don’t want to try and start competing with the likes of Amazon or eBay. These are established online businesses that have massive infrastructure and experience in creating new business models.The secret for the best online business ideas are not to try and invent a new product or service but to find the ones that are most popular and sell them to the people who are looking for them. This business model is known as online affiliate marketing and is a very simple concept. You find a target market of people who are looking for something to help them solve a problem or enhance their life and get them to buy it from you. So, for example, it could be somebody looking to lose weight or somebody trying to find a partner for a new relationship. If you have the right product solution for them at their time of need, they will be more than happy to buy it from you, as you have solved a problem for them.

Your task as an affiliate marketer is to find a product that will fulfil the needs of people and let them know that the products is available. When a person buys the product, you get paid a commission by the product owner.Why is affiliate marketing one of the best online business ideas?Primarily, the main reason that affiliate marketing is one of the best online business ideas is that you you do not have any of the overheads that are normally associated with a new business. You do not have to spend time and resource creating a product, that somebody may (or may not( buy. You do not have to buy stock, you do not have to pay rent for any premises, you do not have to fulfil the supply of the product as the product owner will do this for you. All you need is a computer and access to the internet.But, if affiliate marketing is one of the best online business ideas, why isn’t everyone doing it? Good question. The answer is that you do need to learn how affiliate marketing works and have a certain set of skills to enable you to achieve the financial rewards you want.

You have to know the right places to find the best products to sell (hint: try Clickbank, Commision Junction or Market Health).

You have to be able to find the best place to find for customers via paid advertising and free methods.

You have to know how to build a list of potential customers and how to establish a relationship with them so that they trust you. If they trust you, they will buy from you.

You have to understand that the best online business ideas work on the principle that to give is to receive. In other words, you have to provide your potential customers will relevant and valuable information so that they will see you as an authority in your market. If you just constantly try to sell, sell, sell, it will put people off.

The online entrepreneurs who have had the best online business ideas know that they have to invest in their online education. It is possible to have a successful online business, but you do need to take time to learn as you earn.