I personally think and LLC is best.  Shields you from any liability and has good tax benefits. lose weight fastsun auto salesminneapolis landscapingonline car auctionscar auctions online

I would suggest that you find a local Small Business Development Center (SBDC) - they can answer your speific questions about the laws of your state. You should not need an EIN based on the information you provided here - in fact, I think the IRS discourages EIN unless you plan to hire employees. For more: http://www.irs.gov/businesses/small/article/0,,id=98350,00.html

Although in most states you don't need to specifically register as a sole proprietor, you still need to register your business name with your state or local agency that handles DBA registrations. Doing so gives notice to the world that you are in business. To pay taxes, when you file your personal income taxes you will also file a Schedule C to report your income and expenses from your business activity. Whether you need an EIN or not will depend on what your bank requires. If you have your personal and business accounts at the same bank, they can't use your Social Security number on both accounts. Each must have a unique number. You would use the EIN number on the business account. If you have not yet set up a business bank account, it would be to your advantage to do so. By keeping the business income and expenses separate from your personal ones, you will simplify tax reporting. Contrary to what someone else posted, having an EIN will not separate your business income and liabilities from your personal ones, nor will it make it easier to apply for a loan at some futuer time IF you are a sole proprietor. Legally, a sole proprietorship is an extension of you. The assets owned by the business are considered your personal assets. Likewise, the debts of the business are considered your personal debts. Having an EIN simply simplifies tax reporting and record keeping. Message Edited by BizResearcher on 09-22-2009 02:23 PM Message Edited by BizResearcher on 09-22-2009 02:25 PM

Welcome to the exciting world of Internet commerce, Cassie! Now, I'm not a tax expert, so I'll leave that to other, more qualified, contributors. Needing to Register What I do know is: To start a 'business' in a more generic, 'philosophic' sense, it is not necessary to register as an LLC, Partnership, Corporation - or anything else. That lemonade stand you made as a kid was a bona fide business. People start businesses all the time without this legal and fiscal machinery, and do quite well. In the broadest sense, a business is nothing more than a medium for the exchange of goods and services for money. However, there are certain legal and fiscal benefits to having an LLC. Virtual Storefront My main reason for registering as an LLC was for the credibility and 'prestige' of the designation. As we are primarily a 'virtual company' - that is, we obtain virtually 100% of our business from Internet marketing, and do most of our transactions with clients via the Internet - we see our website as our 'virtual storefront.' Thus, it is very important to us that this storefront induce credibility, trustworthiness and competence - right from the start. Having an LLC shows others that you are serious about your business and that you have plans to grow it into something. (It at least shows that you were serious enough to pay the government for the registration fees involved!) For me, when I visit an online company's website, I look for things that give it credibility. I look for things like 'Inc.', 'Corp.', TM (trademark) and LLC, and the like. I also look for certifications, reviews and other credibility-enhancing items. Other people do the same. EIN Number If you create a legal entity for your business (i.e.., an LLC is a type of legal entity) then you can apply for a separate EIN. The benefit of having a separate EIN for your business: Think of your business as a separate 'person'. (The legal term is 'juristic fiction', I think.) It has an EIN number of its own (sort of like a social security number but not quite the same thing). This may be important down the road, if, for example, you try to apply for a business loan. As your business' credit will be tied to its EIN - separate from your SSN - this may have a bearing (whether positive or negative will depend upon the success of your business, of course). Just something to think about. The Psychology of Business I am not an expert in Business Law or Finance or Taxes. But I am a business owner now going on three years. I assume you're serious about starting your business, else you wouldn't have taken the time to join Business.Gov or post this forum thread. That said, one thing that has helped me tremendously is to start thinking about my LLC as a separate entity from myself. This mindset helps achieve objectivity and pragmatism with respect to running your business. It helps me make better decisions concerning business purchases, hiring contractors, contracts. In short, it infuses my whole attitude about my business as that of someone fitted for success. Tools such as creating a separate identity for your business via a legal designation, a separate EIN, a separate business account, etc. - these are all helpful to that end. Another thing: If you have no legal designation for your business, then you can't open up a bank account for your business or secure a loan for your business, I don't think. (I could be wrong about that). As your business becomes (hopefully) more profitable, it becomes increasingly important to keep its revenue separate from your other sources of revenue. (Trust me on this one!!) Tax Reporting As an LLC, you have the option of filing a separate schedule for your LLC on your yearly income taxes. It is called a Schedule C, I believe. (Actually, I think there are two or three other schedules you can use as well). This helps you see whether your business is profitable or not easier. Another benefit of having an LLC is that the LLC - being a 'legal entity or person' - can make business purchases, and those expenses can be deducted from the revenues the LLC generates (in certain cases and to a certain extent). So, for example, the LLC could purchase a printer and this expense could be written off at the end of the tax reporting year. I think you can do this with a Sole Proprietorship too, but not sure the proper procedure. Message Edited by petrosianii on 09-21-2009 05:37 PM Message Edited by petrosianii on 09-21-2009 05:41 PM

Business.gov has several helpful resources for starting a small business. I suggest first taking a look at the Steps to Starting an Online Business. I also suggest the pages for Women Owned Businesses and Home Based Businesses. For State and Local information check out the Florida Small Business Guide. For help staying compliant with laws once your business has been established I suggest the Online Business page. I hope you find these resources helpful. I am moving this post over to the Loans, Grants, & Taxes board where I believe more tax experts will be able to respond to you. Please check back and keep us posted about your progress! Good luck! Message Edited by CharlotteW on 09-21-2009 01:34 PM

I personally think and LLC is best. Shields you from any liability and has good tax benefits.