[RESOLVED] E-Commerce Business License

[dclamp]

Do you need to have a business license to sell software online?

[mendhak]

You just need a website to showcase your software and a payment gateway. They will host your software for you for download and do the payment processing as well, for a certain cut of the sales or in some cases a flat monthly fee. The only example I can think of right now is Yahoo stores. For yahoos.

[RobDog888]

Hello! Of course you do. Unless you want to get fined and pay back sales and income taxes.

Go to your City Hall of the city where you are going to base your business from and apply. Oh and I did tell you before that you need to be 18 to get a license and sellers permit and internet sales permit.

The payment gateway, like PayPal, requires a business license in order to sell since you are going to be doing commercial sales.

Or you could learn the hard way


Thread Moved

[dclamp]

ok, thanks rob! I just needed to prove my friend wrong, once again. He thinks you dont need a license. Also, he is under 18 (14).

oh, and where were you on my birthday rob!?

[RobDog888]

I was writting c0d

See if you were in a different state or country then things may be different. But in CA it also depends on the city if they want to require you to get a Internet Sales Permit too. Its just an additional add on to your regular Sellers Permit. They want to make sure they collect sales tax from internet purchases too from you.

I had one before with my previous business but with my new one that I started about 2 years ago I havent had the need for the Sellers Permit yet as I have been doing Contract work. A Business License helps get you on your way to Incorporating your business as to isolate you from law suits.

Basics of starting a business:

Business Address (do not use your home or a PO box (po box is illegal as the only address for a business))
DBA Name (Doing Business As or aka: Fictious Name Statment)
Business License (obtain at city hall)
Sellers Permit (obtain at Hall of Records)
Internet Sales Permit (check with Hall of Records if needed)
Business checking account
Payment gateway (PayPal or via your bank business checking account)

Then you need to get Business Insurance or a Bond. This insurance is what customers/clients will sue against if there is any issues. You can usually take the risk and wait til you start generating decent income or sales before you purchase it (its expensive).

My first UserControl is almost done and ready for sale but I need to get the Sellers Permit first and the software to prevent reverse engineering of it.

Including the $100 to open the business checking account, you can start a business and all the paperwork for less then $500

Disclaimer: I am not a lawyer so this is in no way legal advice.

[dclamp]

Disclaimer: I am not a lawyer so this is in no way legal advice.

does this mean i cant sue you if i get sued?

[RobDog888]

Correct. I make not warrenties or claims. For business advice you need to consult a business attorney

There is nothing stopping you from selling something on ebay etc but for what you are wanting to sell as a re-occuring sales you would really need to become a business and insured. It only takes one fool to cause you thousands on dollars of damages and years of headaches. Also, it will keep you inline with uncle sam. They do chanrge fines and interest for back taxes not reported or paid.

[dclamp]

ok, well thanks rob for warranty-free advice.

and now call this thread... RESOLVED (gavel thump thump)

[RobDog888]

Oh, if you were to give your software for free and provided a disclaimer giving no warrenties then you could do that.

[dclamp]

Oh, if you were to give your software for free and provided a disclaimer giving no warrenties then you could do that.

i have one already:
http://subsoft.net/tos.php

think you can check it out and give me some warranty-free advice on that too?

[Hack]

I would think that the the only warranty you need on free stuff is that their is no warranty and you use this at your own risk.

[RobDog888]

Yes, thats what Im saying. A disclaimer stating that they use at their own risk and no warrenties are given or implied but then that will also scare them away from trying your software.

[Shaggy Hiker]

Keep in mind that a business license can have other uses. Tax write-offs for business expenses, etc.

Of course, not only am I not a lawyer, I don't have a business license, but I've talked to people who do. Once you go that route, you should have a serious discussion with a good tax lawyer, as you would be foolish not to take advantage of it to its fullest extent within the law.

[RobDog888]

Yes, definately. I actually got a great refund last year with the first year of my business being in business. I have more write offs then you could shake a stick at.

Now this year I have probably even more. Im buying a few more things that I can write off before Tuesday. More memory, study guide software, Flash video conversion software for one of my sites, and some more marketing materials to promote my consulting/component site.

Next year I hope to lease a new car under the business so it too can be a write off. The possibilities are endless

[dclamp]

Well, now that i know the facts (non-warranted), i will take them and apply them to the real world..... as soon as i turn 18