QUESTION
Hi, I plan on starting an online business to sell online certificate programs (in which I teach) and books (I self-publish). My questions are ...
Asked on Oct 18th, 2011 on Business Law - New York
More details to this question:
. Do I have to establish it as an official business entity? If so, how can I do it in NYC? (I want it be a sole proprietorship)
. Do I have to pay taxes for its income (which may be negligibly low for the first year or two)? If so, how can I register it to the IRS?
. Does the business need to be accredited to offer online certificate programs (certificates offered will be "professional" ones for professional or personal improvement, not "academic" ones for academic credits)? If so, how can I get accredited?
. For the business to be started in NYC, do I -as the owner- have to be a resident of NYC? If not, can I use a PO Box address as the registration and mailing address?
Thanks in advance for your advice,
1 ANSWER
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You don't have to establish it as an official business entity but it is probably a good idea because it will shield you from personal liability.
Not a tax attorney but if you run the business so that you sweep out any income as salary by year end the business itself should not have any taxes. Also, partnerships, like LLCs and Subchapter S Corps, are "pass-through" entities that don't pay taxes, their owners do.
We can help you get a federal tax ID number, it's easy.
Don't know the "accreditation" rules off-hand. What is the nature of the course you plan to teach? For example, a traffic school would obviously need state accreditation.
You do not need to be a NYC resident.
I would not use a PO Box. I would use your actual address or your counsel's address.
Hope these answers were helpful to you and we can do the work for you for a flat fee if you would like some help.
Answered on Nov 30th, 2011 at 2:49 PM