Thanks for all the help, I'm going to form an LLC, it seems relatively easy. One more question- I found this website which will do it for me (though it seems easy enough to do it myself), but with it comes things like an EIN and an LLC Operating Agreement. Do I NEED to purchase these things additionally? Thanks!

Thanks for all the help, I'm going to form an LLC, it seems relatively easy. One more question- I found this website which will do it for me (though it seems easy enough to do it myself), but with it comes things like an EIN and an LLC Operating Agreement. Do I NEED to purchase these things additionally? incorporate.com/doIncOrderStart.do?partner=NOLOXT&entityState=ID&pseudoEntityType=LLC&entityType=LLC Thanks! ---This post was edited to remove a commercial link. Read our discussion policies for more Community best practices.

I guess that you are in the same position like a freelancer... i am not sure, but I thing that LLC is enough.

The only reason (and probably the best reason) in forming an LLC is to protect yourself, in case of any liability or law suit. You personal assest meaning your (bank account, property and etc.) can't be targeted. They can only target assest that you declare that is associate with the company. Example : If your company failed to pay a debt (or check bounce) they can only go after the company and not you personally.

Like phanio said, a LLC can protect you because it separates you and your business. You can read more about LLC and Sole Proprietorship at Business.gov Incorporation Guide. JimD

As of right now, it is just me working on this company. Should I/can I form an LLC if it just consists of me running a website and selling through it and through ebay?

It is great that you have done so much - it seem that you are right there on the cusp.   Do know this - having been in your situation a few years ago - it really is not going to matter so much the level of products and quality of products that you sell in the beginning.  You have to start thinking about how you are going to market you business online given the hundreds of thousands if not millions of businesses already out there doing what you are attempting to do.  The saying 'if you build it they will come' does not relate to online businesses.  Trust me - I wasted years and tons of money figuring this out.  It will really all come down to your SEO and search engine marketing efforts.  Once you begin to drive solid traffic to your site - then you can really start focusing on your product line and offerings.

You should not need a license per say - but, it really depends on your state. I would suggest that you file or form an organization within your state. The reason is to protect your personal assets from lawsuits. If you operate as a sole proprietorship - you are your business and if someone sues your business - they also sue you. But, if you form an LLC or C Corp - they can only sue your business. Plus, it shows that you are that much more legitimate to your suppliers, customers and taxing authorities.

Pls follow the link for starting online business - http://www.business.gov/start/online-business/ & rest it is your choice if you are selling less products then go with ebay.

Which ever way you go LLC- Corp etc. Be sure to do one thing. DO NOT, NEVER EVER, UNDER NO CIRCUMSTANCES use your company checking account for any personal items. If you run to the store for milk and bread and have no money or personal credit cards and the only thing you have is your company check book or company Debit Card or company Credit Card... go home and get money...DO NOT use your company debit or credit cards!!! The reason for this is once you use your company money for personal business then your company bank account becomes a personal account according to the IRS. And then you can be personally liable if someone sues your LLC or your Corp. I learned this the hard way!