Chapter 6 · 5 min read
Getting Set Up: Names, Registration and Taxes
The Online Business Web Book · Published
Setup is where many first-time owners either freeze (doing nothing) or overshoot (buying everything). The middle path is to do the few required things properly and leave the rest until revenue exists.
Checking and choosing a name
- Search your state’s business name registry to see whether the name is already taken or reserved.
- Check whether a matching domain name is available. A workable, simple domain beats a perfect name with an awkward address.
- Check that the name does not obviously conflict with an existing trademark in your field — when in doubt, ask a professional.
Business structure, in plain terms
Many small online businesses start as a sole proprietorship: no filing required, simplest taxes, but no separation between personal and business liability. Forming an LLC or corporation changes liability and tax treatment — and adds filing and maintenance requirements that vary by state. Which structure fits you depends on your situation, your state, and sometimes your industry.
The U.S. Small Business Administration maintains a clear, current overview of business structures and how to register your business. Read those two pages before paying anyone to file anything.
Licenses, permits and taxes to research
- Most cities and states require some form of business license or registration — requirements vary widely, so verify locally rather than assuming.
- Self-employment income is generally taxable, and self-employed owners typically pay self-employment tax on top of income tax. The IRS maintains a Self-Employed Individuals Tax Center covering the essentials.
- An Employer Identification Number (EIN) is free directly from the IRS and is often needed for business bank accounts and certain filings — see Get an EIN.
- Some banks and payment processors require your registered business details before opening accounts or processing payments — another reason setup comes before selling.
Setup checklist
- My business name is checked and available in my state.
- I know which structure I am starting with and why.
- I have read the SBA and IRS pages linked in this chapter.
- I have a record-keeping plan ready before my first sale.
Setup done — now for something people will actually see. Chapter 7 builds a simple, credible online presence.
Sources
About this chapter
Written by the AdvertisingBusiness.us team with the help of AI drafting tools, then edited by our team for accuracy against our own current pages and the official sources linked in the chapter. It is general education, not legal, tax or financial advice. Examples are illustrative, not customer results.