You should consult with a business lawyer. This will be money well spent. That lawyer will probably suggest that you organize as an LLC, draft and operating agreement, help you chose an appropriate designation for tax purposes, and otherwise give you advise that will keep you safe, save you money in the long run, and generally give you peace of mind.
Hire a lawyer to help you now. Spending a small amount now could save you big problems and money down the road. Good luck.
I agree with the other attorney's answer. You should talk to an attorney now while you're getting set up. An LLC might be the best idea for you, as that would protect you from personal liability if a judgment was ever entered against the company. You can also find more information about forming an LLC in Wisconsin here: http://www.wdfi.org/. Good luck.
This answer is for information only. It does not constitute legal advice. This answer does not constitute, nor do they create, an attorney-client relationship between Joseph A. Larson Law Firm PLLC and any receiver. This site is governed by a Site Use Agreement that you accept by reviewing these pages. The information provided on these pages is general only, and you should not act upon this information without consulting with an attorney.
Q: "I am wondering if I legally need a DBA, or if I am fine doing business as myself."
R: Registering a fictitious business name and doing business under that name is a branding decision that's based on your assessment of your business and the marketplace. If you think doing business under a snazzy name will boost your credibility and drive business your way then you should do business under that name. If you think your personal name drives business your way then continue to do business under your personal name. Either way, unless you formally create a company [an LLC or partnership or corporation] then you are doing business as a "sole proprietor" regardless what you call your business. To put a fine point on the matter, a fictitious business name does not CREATE a company -- it just names the business that you're providing yourself.
As my colleagues note, you should speak with a business attorney licensed to practice in your state who will advise you on how best you should do business. Good luck.
The above response is general information ONLY and is not legal advice, does not form an attorney-client relationship, and should NOT be relied upon to take or refrain from taking any action. I am not your attorney. You should seek the advice of competent counsel before taking any action related to your inquiry.
You can do business under your own name or a fictitious name as a sole proprietor; however, you open yourself up to unlimited personal liability. A LLC or corporation provides you with numerous benefits including: limited liability, tax benefits, and others. Since, you are doing business as the sole owner, you should consider the LLC. Consult with a business lawyer who will assist you with business planning and due diligence, formation, market assessment, raising capital if needed, and all the necessary documentation to help your business be successful.
The information provided is intended for informational purposes only and should not substitute for the advice and counsel of an attorney. This information does not constitute legal advice. We ask that you consult with a lawyer, as your facts are unique and because each situation requires analysis from many different perspectives. We cannot be responsible if you rely on information based on this website without the consultation of an attorney.
Are You Planning on Opening a New E-Commerce Website?
There is much you need to know as you begin your new business. I suggest you do not attempt to write your own legal policies. This is not where your training and background lie, and though you are probably as smart as an attorney, you do not have their experience.
Below is a checklist for legal issues I use for new e-commerce clients.
1. Business Model – Is your idea viable as a web based business?
2. Business entity - Are you going to be a C corp, a sub-S, an LLC or a sole proprietorship?
3. Terms of Service - This is your contract with your visitors and is the most important item for any e-commerce site. A little work here brings big dividends in the future.
5. FTC guidelines - The FTC has been regulating business advertising for almost a century. All of their advertising guidelines apply to e-commerce sites.
6. Domain Name issues? Is your name available. Can you create a Trademark?
7. Trademark - Do you have a brand name free from conflict? Should you start with just common law rights? Should you register the mark, and when?
8. Copyright - If it is on the web, it already belongs to somebody. Did you buy a license for the images you are using?
9. Do you need a DMCA policy?
10. Web Site security issues?
11. Do you need and have an EIN? You can get that for free.
12. Do you need an arbitration clause?
13. Do you have employees? - If so you need written policies regarding their authority and use of the internet.
14. Do you know the difference between a "browser wrap" and a "click wrap" and which do you need?
15. Are you abiding by the Child's Online Privacy Protection Act (COPPA)rules?
When I discuss this list with clients other issues arise. Finally, I always discuss with my clients their need for good accounting services. An accountant's advice as you start up can save you many dollars in tax that you might not save if you wait to speak to an accountant until your first tax return is due.
I hope this list will give you pause to think about those issues for which you might need to seek professional advice.
You may want to discuss your situation with a lawyer in more detail. Most lawyers on Avvo, including myself, offer a free phone consultation.
This post is provided for general informational purposes only and is not intended to be legal advice specific to you. This general information is not a substitute for the advice of an attorney in your jurisdiction. The attorney client relationship is not established by this post.
E-commerce Sole proprietorship LLC (limited liability company) C-corporation Business partnerships Business contracts Small business taxes Small business tax forms Business arbitration Business privacy laws Intellectual property Copyrights Trademarks Business Privacy law Arbitration Naming a business Consumer protection Copyright infringement Tax return Tax law LLC operating agreement