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How To Start An Online Based Business And Is It Better Than A Traditional Business

Updated on May 6, 2013

Starting a company online is far easier and cheaper, than by ways of traditional brick and mortar companies. The paperwork is far less for online companies and with low to no investment is needed in its creation. Beyond monetary ease, online businesses give a global selling opportunity that would be hard to match in one physical location. Although there is no building to the company, an online-based business has to abide by business laws set out for the regular sort. All federal, local and state taxes are still the same for an online based business as well. Companies that are started and operated online have a few extra laws that have originated since problems from online business have risen. The Anticybersquatting Consumer Protection Act of 1999 was passed by President Clinton to protect persons from using personal names as a way of profit. There are also strict rules on delivery, that if a company can’t deliver within 30 days, they must notify the customer at time of purchase by way of backorder claims.

With little or no investment needed to start an online company, they will generally be sole proprietorship or partnership. Some many even start the business as a limited liability corporation, however since there is little start-up cost, it seems unlikely that a business would issue stocks and bonds for money. Some online companies go public, changing their status to a corporation like Facebook did recently.

To start an online based business the person must merely choose and register a domain name for their company, making sure that the certification is registered so no other will be able to use the name. Then, a web host will be selected to give space and support for the website. The website is then designed and the business should begin advertising and promotions to get the word out. All tax laws and operating laws are applicable for an online business, thus accounting and tax payments should begin like any other business.


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    • cheryschmidt profile image

      Chery Schmidt 5 years ago from Northern Wisconsi

      The benefits of an online home base business far outweigh a brick and mortar business.. I have had both and Vote for Online !! Thanks for sharing Chery :)