Mark, please re-read:   By the way, you are wise not to jump on the LLC bandwagon. Most people pay a lot of money for what they erroneously consider a magical cloak around their personal assets. This is a falacy. Even if you incorporate you are still wide open for lawsuits if you sign a personal gaurantee. And you will be 'asked' to sign that little personal gaurantee by everyone from landlords, bankers, credit card merchant companies, vendors, etc. That piece of paper renders the so-called protection void. Speak with an attorney for  more info.   This is advice I got from my attorney when I bought a franchise. Sure enough, even though I had incorporated, I got sued.   See an attorney before you decide on your business structure.

I will strongly, very strongly advise setting up the LLC. If cost is an issue then register it in Nevada, for free and give yourself the best chance of keeping your personal assets safe from any lawsuits. Best of luck!

Here is the IRS link to apply for in EIN

Thanks everybody for very helpful information! Time to sit and read more. I decided to go to our local Chamber of Commerce to see what they would suggest. I did think that I would be directly responsible either way because I am personally signing papers. Hopefully, I don't give any reason for anybody to sue me. Good luck to all!

Thank you bizdev for your input! alisapt, Since you are starting from scratch, please take a look at our Starting a Business Guide. Here are some laws governing online business, so feel free to check it out. The steps to registering a business that will answer some of your questions. In which state are you planning to start your business? Knowing your state will help you figure out specific laws, taxes, permits, and licenses that are applicable to you. Lastly, you should look into the logistics of importing from Europe to see if it makes good business sense before you do so. You are right to be nervous about diving into an LLC. You should definitely read up on different types of business incorporations. Are these suggestions helpful? Let us know how your business goes!

Great questions. 1) Register the business (same as registering the name or DBA...doing business as) with your local county offices. Very easy and inexpensive. In my area it is one quick page and costs $8 2) Yes, wholesalers deal with sole proprietors. 3) You do not need an EIN for a business bank account. Your DBA certificate is all you need. However, wholesalers do generally prefer an EIN. That is also a fairly simple form to fill out with the IRS. Just go to IRS.gov here: 4) I can send you a comprehensive step by step ebook. Contact me at my email address (see profile). 5) A business license is very different from a business registration or DBA. Only certain business types require a license. For example if you wanted to open a day care center or a nursing temp agency you would need a business license. Just google your state government offices and there will be a section for small business. There should be a listing of what businesses require licenses. By the way, you are wise not to jump on the LLC bandwagon. Most people pay a lot of money for what they erroneously consider a magical cloak around their personal assets. This is a falacy. Even if you incorporate you are still wide open for lawsuits if you sign a personal gaurantee. And you will be 'asked' to sign that little personal gaurantee by everyone from landlords, bankers, credit card merchant companies, vendors, etc. That piece of paper renders the so-called protection void. Speak with an attorney for more info. Message Edited by NicoleD on 11-30-2009 04:56 PM