How to Open a Business Online

From personal experience, starting a home-based business online in this case, a koi online business is easy and less expensive in the long run than starting a traditional business. You do not have to spend thousands of dollars but you will have to come up with start-up money. Most online businesses start-up cost range from $500 to $5000.

Step One:

A. Decide on a product/service that you want to sell or offer. Having a niche or focus on a specialty category is the best way since you're essentially competing with retailers like Wal-Mart or Target when you enter the online retail space.

The great news is... becoming a dealer for Koi Stop, you already have a specialized niche -- all the koi fish and all the dry goods or koi products on our website at www.koistop.com

Step Two:

A. Choose a name for your business, and register it.

Check your local County Clerks Office to see if the company name you want is available. You can get more information from your County Clerk. Go online to their official website or check your phone book for a local office.

Note: Don't forget to ask your County Clerks Office about "A Fictitious Business Name Statement" and if you'll need one.

Also decide on what type of a company you want: Sole Proprietorship, Partnership, Corporation. Proprietorships are the easiest and most inexpensive to set up.

B. Get a business license.

Go to your your local city hall in the city that you will have your business in and sign-up for a business license. If you live outside the city limits, then get the license from the county. Each city's fee for a business license varies.

Step Three:

A. You need to choose a web hosting service provider. Cost usually range from $7 to $99 a month.

Web hosting service providers are companies that provide space on a server they own or lease for use by their clients as well as providing Internet connectivity, typically in a data center.
examples: godaddy.com, inmotionhosting.com, ipage.com

B. Then you'll need a domain name.

A domain name is the name you want to give to your website (examples: mykoishop.com). If the domain name is available, registered it. The cost usually range from $10 to $25 for a year (you have to renew your domain name every year).

Step Four:

A. You will need to create a website to sell your products.

You can design the website yourself or pay someone to design one for you. Web Designers all charge vastly different fees, which usually run somewhere between $500 to $5000.

B. Now you will need a credit card merchant account (so you can start accepting credit cards online).

Merchant account fees range from $15 to $69 a month, not including a set-up fee which can range from being free to $99.

Step Five:

A. You're almost done! The last step is about making sure your website is seen. Your website is of little use to you if no one uses or visits it.

Submit it to search engines (usually free to $25 one-time-cost)
Advertise (prices can vary from $25 to $500 a month, depending on what type of advertising you choose)
Make your website SEO friendly (cost can range from $1000 to $7500 for your website to show up on the 1st or even 2nd page of a search engine like yahoo, google, msn, etc.)

See our Koi Dealer Info page

More FAQs -- Business Info

(Koi Stop is not a legal advisor. The following is intended for informational purposes only)

Q: What about sales tax?

A: Sales tax must be collected by sole proprietors, Schedule C businesses and incorporated businesses alike. In general, you do not need to collect sales tax from buyers who live outside your state.

Find your state's sales tax rate and tax department website here: Sales Tax Clearinghouse. It is important that you do this as there are significant variations between states. For instance, some states have one rate that applies state-wide, while in others, the rate varies between counties and cities.

Q: So what do I do with the sales tax after I have collected it?

A: Keep track of it!

Q: So I have collected it and recorded it, now what?

A: In some states, you will need to pay sales taxes quarterly and in other states it is annually. If you have applied for business license in your city (advisable), you should automatically receive a form every year that will have a few simple questions and a place for you enter the amount of sales tax collected. Write a check for that amount and mail it off. It is really very simple. And remember, you are selling to people all over the 50 states so the number of sales within your own state is likely to be relatively few and the tax will be a minimal amount.

Q: What is Form 1099-MISC?

A: As a dealer, you are considered by Koi Stop as an Independent Contractor. If you were paid $600 or more during the year, Form 1099-MISC will be mailed to you prior to January 31st.

Q: Do I need a business license?

A: Nearly all businesses need a county or city license. This is a general license that grants you, as the business owner, the privilege of legally operating a business within a certain city and/or county jurisdiction. Therefore, it is important to put some time and energy into researching the requirements for your particular area. Finding such information is usually relatively easy, involving a phone call or visit to your city or state’s government office. Often, these offices are located in a local courthouse. Though some areas may not require home-based businesses to obtain licenses, it is risky to assume that a license will not be required.

Q: Do I need a Seller Permit or Reseller License?

A: A Seller Permit or Reseller License enables you to purchase goods wholesale without paying sales tax. It also allows you to collect sales tax from your customers, the end consumer. Without a seller's permit you will have to pay sales tax on the goods you buy wholesale. Also most wholesalers will ask to see a reseller's license before they will sell you the goods. This is because they are legally obliged to check whether you are able to collect sales tax from the end user.

Basically the resale permit/license allows you to buy wholesale [ for the purpose of reselling only-no personal use permitted ] and pay no tax. The items are then resold, and tax is paid by the consumer at the time of purchase. Taxes only need be paid one time.

NOTE: Each State has a different name for the same permit. Other names for a Seller's Permit or Reseller's License are:

Resale Permit; State Tax ID; Sales State Tax Id; Resale Number; Resale Certificate; Resale License; Certificate of Authority Use; Sales Tax License; Permit Sales and Use Tax Application to Collect; Report Tax; and Transaction Privilege.

Q: How do I get a Reseller License or Seller Permit?

A: You apply for a reseller certificate/license with your state tax department. For instance, if you are in New York, then you would go to the New York State Department of Taxation and Finance (either online, by phone or in person) and fill in the appropriate form.

For more FAQs see our Koi Fish FAQs