New Business

[BMC_Ryno]

Ok, Thought someone on here may be able to help me out.

I am starting a Web Design/Graphic Design business. I myself live in NJ. The co-owner lives in Alabama. We have been working on the start of our business for quite a while. (Web site, Business Plan, Marketing Ideas, etc.)

My question is, What type of business license(s) would we need to start on our venture? Would we just need to register the business name and that is all? I've done alot of research in my state but come up with a lot of dead ends when refering to a web based business. We would like to do work internationally to expand out market and I myself do not plan on staying in the USA myself. Eventually I will be moving to the UK (England) and would like everything to be able to go with me without having to apply for new licenses.

Does anyone have information on this matter? It would be a great help and much appreciated as the search for such information has been a long frustrating path that I would like to get past so we can get business started.

Thanks ahead of time and I will be looking forward to hearing your comments and information. :)

[tracknut]

Basically the answer is to see your accountant. You'll need to decide if you're going to incorporate or to form a partnership, first. Then you'll probaby need to register for a business license either in NH or in Alabama, and also file a DBA in the two counties you're operating in. I can't imagine you could do this in the USA, and then "not have to apply for a new license" in the UK. There's bound to be some licensing required, but I don't know what it would be.

I would suggest not dealing at all with the UK issue today. Just get setup here in the USA, and then deal with the UK when it happens.

Dave

[BMC_Ryno]

Basically the answer is to see your accountant. You'll need to decide if you're going to incorporate or to form a partnership, first. Then you'll probaby need to register for a business license either in NH or in Alabama, and also file a DBA in the two counties you're operating in. I can't imagine you could do this in the USA, and then "not have to apply for a new license" in the UK. There's bound to be some licensing required, but I don't know what it would be.

I would suggest not dealing at all with the UK issue today. Just get setup here in the USA, and then deal with the UK when it happens.

Dave

Thank you very much for your information Dave. I appreciate it. You can understand my confusion on the issue at hand. I've been trying to learn more and more about business in the USA and I may be a PC geek but when it comes to business etc I can get kind of confused lol. Well, not so much the business aspect I would like to consider myself to have a good mind and eye for business but when it comes to the licenses that is when I get lost. If you or someone could answer, what is the difference or definition of "incorperating" and "forming a partnership? Also, what is a DBA? These may seem like simple things for most but as I said I am trying to learn as much as possible about business. Would it be better to seek an accountant on these types of things or a business lawyer?

Again thanks ahead of time for any responses

[tracknut]

No problem, you've gotta start somewhere :)

While I've formed several corporations and partnerships, the legal definition is not on the tip of my tongue. So I'm sure someone could easily find fault with my description... but anyway...

If you form a corporation, that's a taxable entity of it's own, and comes with all the advantages or disadvantages. So *it* makes income, *it* must pay taxes (as opposed to you and your partner paying the taxes), *it* carries the liability of any suit (within bounds), *it* may hire employees (like you and your partner), *it* may provide its employees with benefits, etc, etc.

If you form a partnership, *you and your partner* receive income, pay taxes, carry liability, etc, etc.

There are very different tax ramifications to those two options, and typically your accountant is the best positioned to help figure out which is better in your situation. And there's nothing that says you need to commit to a decision forever. You could start as a partnership, and incorporate a couple years later, for example.

A DBA ("Doing Business As") is a notification to the public that instead of doing your business as "John Doe" you've decided to call yourself "Really Cool Web Design Co". You need to do one if you don't use your own name as the business name (at least in California you do, I don't know for NJ).

Dave

[Compguy Pete]

I'm going to hit on a couple of other sides of this topic...

you asked about "Web site, Business Plan, Marketing Ideas, etc."
- Web site: Surely... would be kinda funny to not have one
- Business Plan: Not really needed unless your looking for investment from other people or a bank.
- Marketing Ideas: I'm sure that your going to be pretty hard pressed to find a developer here who wouldn't support me in saying "network Marketing" It's a matter of getting to know people and letting them know what you can and will do for them or people they know. Additionally I would say that your website is going to be more for people who hear about you vs. random traffic from a search engine.
- etc.: Business Cards are a must! I've considered making a postcard sized card that would highlight my offerings.

Keep in mind that Just about anything you do here to make youself successful will transplant anywhere.