Do I have to incorporate my business to have my own web store?
Jul 11, 2009
in
Small Business Merchant Accounts
I plan on creating a web store using another website where the shopping cart, host domain name, etc would be provided. Do I still need a merchant account? Do I need to incorporate my business or can I sell my products (around 10) on my website? I’m not going to sell through ebay because I already have some loyal customers but my products are very cheap (around 10 dollars). So what else do I need to do besides creating the website using their software?
Thanks in advance
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4 comments
imisidro on July 11, 2009 at 1:36 am
Do I have to incorporate my business to have my own web store?
No, you don’t have to incorporate to operate a web store. Many website owners operate as sole proprietor, especially if you are just starting. When the income flow becomes better and the business grows, then you can start rethinking your legal structure and consider incorporating. But it is not necessary at the start.
Do I still need a merchant account?
With every web store, you need a means to accept and process credit card payments - which you can do by having your own merchant account or by using a third party processor such as Paypal. Since everything is going to be provided for you, check with this company if you still need a merchant account or if they will provide it. If they will provide it, check the rates and whether you have the option of using your own merchant account with better rates.
So what else do I need to do besides creating the website using their software?
It seems you will have to use a predefined web template if everything is going to be provided. If not, I suggest you study the big merchants and how the implement the look of their site — from the colors to the placement of the Buy It Now button to the shopping cart system. The thing you need to do is to market the site, and that can be a full time task.
Mister_fin on July 11, 2009 at 1:36 am
No you do not need to incorporate your business. First see if you will make enough money to incorporate, then do it. I.E. if you make less than $35,000 a year in CA, don’t bother incorporating your business.
The design of your web store is based on whatever you want to do with it. If you want to go through the hassle of taking credit cards, then go high tech and buy somebody’s software.
Mandy B on July 11, 2009 at 1:36 am
No, you can create a web store as an individual. You may need to open an account with another payment processor but you can do this in your own name (this will be referred to as your merchant account even though you are an individual and not a business). Other than that it really is just creating your website with their software and marketing.
emmettgolf on July 11, 2009 at 1:36 am
Just go to city hall and get a license for about $100.