Business question

Post by **Gogeta70** » 31 Dec 2008, 01:33

My brother asked me a question earlier today because he doesn't know how to go about this exactly. What he wants to do is open an online store for environmentally safe products (for those that want to 'go green'). What he wants to know is how to go about becoming a reseller for the products he has found from various manufacturers. I assume he needs to contact them, of course, but what else would be involved and how would he accomplish this?

Thanks in advance for any help.

n3rd · Post by **n3rd** » 31 Dec 2008, 04:23

-create a company (otherwise tax authorities will rob u blind for not paying taxes)
- open a bank account for the company
- write a business plan if needed for the bank
- marketing plan (how to promote your website to generate customers)
- do market research in to where your customer group lives (so that u can better target that audience)

Thats a start.

Post by **bad_brain** » 31 Dec 2008, 05:24

yeup!
I don't know how it works in the US, but here all you need is a registered company, registration cost just about 50 bucks and when done you will get your company-tax-ID number....then you can contact other companies and make business on reseller-level (the first thing they ask for is the tax ID).

Still_Learning · Post by **Still_Learning** » 31 Dec 2008, 08:10

some people prefer a corporation instead, because if some reason someone sues your business, then your business takes the hit. If you start a company or business instead of a corporation then you personally get hit by the lawsuit damages instead of the corporation.

n3rd · Post by **n3rd** » 31 Dec 2008, 08:20

a corporation is more expensive

besides, by having excellent terms and conditions you can prevent being sued over small things.

u start your business small any way so there is no use in making a corporation (as a corporation can be taken over aggresivly (as a corporation does not have 1 owner, it has multiple) so if u want to stay in control u best start with small business practice)

Post by **DNR** » 31 Dec 2008, 10:16

There is also LLP Limited Liability Partnerships. I also have(had) a business registered so I could open a business account. This part was important as it separated my money in my personal account from the business account. The next step is expensive - liability insurance.
Laws vary by location, but any lawsuits on the website will be based on the laws of where it is hosted.

DNR

Still_Learning · Post by **Still_Learning** » 31 Dec 2008, 10:37

well... yeah they are more expensive.. i know a small business lisence is only 50$ to get then you have to report earnings to pay tax ussually quarterly, cant escape the irs

i think what our looking for is probuly a DBA (Doing business as) lisence, depends on what state your in , on how you get it. here there is a office and it costs like 50 to 60$ or you can do it online legalzoom.com is a pretty good service