How to Set Up a Business?

Online Business or e-commerce is any type of commercial activity or business that involves sharing information online through the internet. Online commerce generally comprises the exchange of goods and services between people, companies and other groups and is considered as one of the most important activities of any business, aside from its traditional role of sales and distribution. It has been further divided into two main categories: Offshore E-Commerce and Onshore E-Business. Offshore E-Commerce is basically a trade or an industry whose main centre is located outside the country where the business is actually carried out. On the other hand, Onshore E-Business involves trading and communication with the country where the business takes place but the actual working infrastructure is based in the country where the company’s offices and other business structures are established.

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How to Set Up a Business?

Online Business or e-commerce is any type of commercial activity or business that involves sharing information online through the internet. Online commerce generally comprises the exchange of goods and services between people, companies and other groups and is considered as one of the most important activities of any business, aside from its traditional role of sales and distribution. It has been further divided into two main categories: Offshore E-Commerce and Onshore E-Business. Offshore E-Commerce is basically a trade or an industry whose main centre is located outside the country where the business is actually carried out. On the other hand, Onshore E-Business involves trading and communication with the country where the business takes place but the actual working infrastructure is based in the country where the company’s offices and other business structures are established.

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This is indeed a very interesting business idea that many people may want to consider. Aside from making you gain knowledge about how the business works, this will also allow you to interact with other online marketers and share ideas with them. If you are new in the world of online business, you might want to learn more about the intricacies of the whole system so that you will be able to understand and apply it to your own online business. In this day and age, many people are relying on the internet and would like to make money using their computers. With business online, they do not have to go out of their homes to go to the office and spend countless hours of time in their cubicles.

This is indeed very convenient since you can now work at your own pace. There are many business structures that are used online, such as sole proprietorship, partnership, limited liability and corporations. There are even online merchants who use auction business structures to make money without having any employees and incur minimal operating expenses. Each of these business structures has their advantages and disadvantages.

One of the simplest business structures that an online merchant can opt for is the sole proprietorship. With this kind of business structure, there is no need for you to hire your own managers. You only have to pay the necessary taxes and submit annual reports to the government. However, this business structure allows you to have much less personal assets than those ecommerce merchants who use corporation and limited liability.

Another structure that you can choose is the partnership. With this business structure, partners will decide the direction of the business and divide the profits accordingly. Partnerships may be limited in scope and have minimum requirements, but this may still be the best business structure for you if you are still starting out. This is because the profit of a partnership will still be lower than that of sole proprietorship. However, if your business is more successful and is able to sustain a larger profit, then it may be advisable for you to avail of the benefits offered by a limited liability company.

Aside from these two basic business structures, you can also choose limited liability company (LLC) or general partnership (GP). Limited liability company requires lesser paperwork and commissions compare to general partnership. However, you cannot eliminate the taxes on your income. With general partnership, you will have to pay for the entire taxes on your personal income and will not pay for the taxes of the business only.

Once you have decided which business structure is better for you, the next step is to make your application. To be able to do this, you must first decide which type of registration fee you will need. Usually, sole proprietorships require one-time registration fee while general partnership requires two-time registration fee. If you decide on having a limited liability company, you may have to pay a smaller number of taxes compared to general partnership. On the other hand, if you decide on a general partnership, you must pay a higher registration cost.

The documentation that you need to prepare once you have established your business entity are business checks and official certificates. For business checks, you will need to go to the county clerk’s office where your business is registered. For official certificates, you need to contact the provincial government offices first. After all the legal paperwork is complete, you can now register your business entity at the provincial, national or local tax offices. You can also update your business name, number of employees and logo using online services offered by different vendors.

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