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How to Choose the Right
Business Entity for You
Main Index Page
Incorporate Online
Register Domain Name
Get Your Online Store
Get a Merchant Account
I-Business Resources
Main Index Page
How it Works
Start Your Business
Best Selling Products Intro
Best Selling Products Section
DropShip Distributors
Open Your Online Store
Marketing Your Online Store
Running Your Online Store
Frequently Asked Questions
Incorporate Online
Register Domain Name
Get Your Online Store
Get Your Merchant Account
Internet Business Resources
There are basically 3 types of business entities (business structures).

1. Sole Proprietorship
2. Corporation
3. Partnership

Sole Proprietorship

A sole proprietorship is owned and operated by one person - you. And many entrepreneurs choose this form of entity when starting their first business or a new business as well.

If the business grows then you can always up-grade your status to a partnership or a corporation.
Yet in the mean time, starting a business as a sole proprietorship continues to be the easiest, fastest and least expensive way to start an internet home business. However, a sole proprietorship may have its disadvantages as well. For example, when you form and run your business as a sole proprietorship you become solely responsible and liable for the business itself.
However, you should also know that the chances of anything going wrong with an internet business that sells brand new products are slim to none.

Legal problems are never heard of when it comes to selling brand new products online. And if a problem should arise then most likely it will be with the product and not with your business. And if there is a problem with the product then the customer can simply return the product back to you in exchange for their money, credit or a replacement product as well.
If there are technical problems involved, such as in the case with computer hardware and software products then the customer must contact and deal directly with the manufacturers’ technical support staff to resolve the matter. (Computer product manufacturers handle all technical support for their products).

However, if liability remains a concern then you may want to set up your business as a corporation, partnership or a limited liability company. But if it’s just you by yourself, and you’re selling brand new products online, then a sole proprietorship may be the best way for you to start your business from home.

A sole proprietorship is the simplest business structure for anyone to form and can easily be done by registering your business name as a DBA (doing business as) with your state government or county clerks’ office.

Although forming a corporation may seem a little more complicated than starting a sole proprietorship, there may still be some advantages in this type of business entity.

For example, in a corporation, the corporation itself becomes a separate entity from the individual owner of the business. And liability now falls upon the corporation instead of the owner. Furthermore, the process of forming a corporation is not that difficult as some may suggest. And you’ll be glad to know that you don’t have to pay an attorney to form your corporation. You can do it yourself for free.

All you have to do is fill out the articles (forms) of incorporation and send it in to the Department of Corporations for your state with the appropriate filing fees which differ from state to state. And if at any time you become confused on how to fill out the articles (forms), then you can always refer to your states’ government website as every state website provides complete step-by-step instructions on filling out your corporation articles.

A partnership is a legal business structure where two or more people share ownership, duties and responsibilities for the business. And a partnership is usually formed when additional start-up funds are required or expertise is needed.

Each individual partner should have some type of knowledge or skill that he or she may bring to the business in order to add value to the partnership and bring greater success to the business as well. And it is very important to carefully select who you choose as a partner and agree to go into a partnership with seeing that the success of the business will depend upon all partners involved in one form or another.

Partners within the business should also be able to work well and get along together without any major conflicts in order for the business to function and run smoothly. And if partners are carefully selected and agreements are made clear, then everything should go well.
Forming a partnership can become a little more complex as well. Furthermore, there are different types of partnerships such as general partnerships and limited partnerships.

Yet in either case, a contract and agreement must be made and notarized in order to be recognized as a legally binding contract. And any and all agreements must be made clear and worded carefully in order to avoid any conflict or legal complications.

Yet starting an internet business does not have to be that complicated. And it’s something that anyone can do.
However, the easiest, fastest and least expensive way to start an online store business is to form your business as a sole proprietorship. And if the day comes when employees or partners are needed, then you can always re-structure and upgrade your business to a corporation or a partnership as well. But for now, starting your business as a sole proprietorship may be the best way to go. 
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Main Article Index Page
How to Succeed in Your Online Store Business
How to Start Your Online Store Business
How to Choose Your Niche Market
How to Create an Effective Business Name
Check for Domain Name Availability
How to Register Your Business Name
Should You Use a PO Box or Home Address
How to Choose the Right Business Entity for You
Sole Proprietorships Explained
Corporations Explained
Partnerships Explained
Limited Liability Companies Explained
Incorporate Your Business Online
How to Obtain Your Sales Tax License
The Best Selling Products Online (Intro)
1. Books
2. Computers, Computer Hardware
NEW:Start a Computer Reseller Business Online
3. Computer Software
4. Consumer Electronics
5. Apparel, Clothing
6. Toys/Video Games
7. Videos DVD’s
8. Health and Beauty
9. Music
10. Jewelry
11. Office Supplies
12. Linens/Home Décor
13. Flowers
14. Sporting Goods
15. Footwear, Shoes
16. Small Appliances
17. Tools and Garden
18. Gifts
About Distribution
Choosing the Right Distributors
How to Get Signed-Up With DropShip Distributors
Books Distributors, DropShippers, Wholesalers
Computers, Hardware, Software DropShippers
Apparel, Clothing Distributors, DropShippers
Toys/Video Games DropShippers, Wholesalers
Video DVD  DropShippers, Wholesalers
Health and Beauty Distributors, DropShippers
Consumer Electronics DropShippers
Music Distributors, DropShippers, Wholesalers
Jewelry Distributors, DropShippers, Wholesalers
Office Supply Distributors, DropShippers
Linens/Home Décor DropShippers, Wholesalers
Flowers Distributors, DropShippers, Wholesalers
Sporting Goods Distributors, DropShippers
Footwear, Shoes Distributors, DropShippers
Small Appliances DropShippers, Wholesalers
Tools and Garden DropShippers, Wholesalers
Gifts Distributors, DropShippers, Wholesalers
How to Find More DropShippers, Wholesalers
How to Open Your Online Store
How to Build Your Own Online Store
How to Build Effective Product WebPages
Building Your eStore with Website Templates
Designing, Planning and Organizing Your eStore
Implementing Graphic Elements
How to Create Your Own Company Logo
Create Search Engine Optimized Product Pages
How to Create a Content Rich Website
Choosing Your Web Host Provider
Create a Search Engine Optimized Domain Name
Check for Domain Name Availability
Top Web Building Software Programs
Top 10 Web Host Providers
Top 10 Complete eCommerce Solutions
Top Website Developers
All About Shopping Carts
All About Payment Processing
All About Merchant Accounts
Using PayPal as a Payment Processing Solution
More Merchant Account Providers
All Merchant Account Providers
Setting Your Prices
Setting Shipping Charges
Maintaining Your Online Store
Your Internet Marketing Master Plan
All about Search Engines
The Top Search Engines
Search Engine Optimization Guide Pt.1
Search Engine Optimization Guide Pt.2
All about Building and Exchanging Links
Purchasing Text Link Ads
All about Press Release Marketing
All about Pay-Per-Click Marketing
All about Discussion Forum Marketing
All about Article Marketing
All about Email Marketing
All about Banner Advertising
How Offering Free Shipping Can Boost Sales
All about 800 Toll Free Numbers
How to Beat the Competition
How to Run an Online Store Business
Dealing with Customers
How to Minimize Interaction with Customers
How to Deal with Customers via Email
How to Take and Place Orders
Paying for Products with Your Customers’ Money
How to Collect Sales Tax for Internet Sales
Avoiding Credit Card Fraud
How to Ship International and Overseas
How You Get Paid Each and Every Day
Dealing with Product Returns and Exchanges
Sample Return Policy and Procedures
Sample Privacy Policy
Sample Terms and Conditions Policy
Internet Business Resources
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