If I am going to start an internet business do I need to register a business name?

There are several excellent articles on Wikipedia that describe the different functions.

The answer to your immediate question depends on your local regulations.

Also read several of the search articles on how to start a business.

What kind of business and what are the liability risks?

It’s best to have your own catch phrase and name for branding purposes. It’s a good idea as it helps people find you easier and it gives the appearance of being legitimate.

Your local library might have entrepreneur meetings, and check your state’s website to see if they have resources for women in business. These were things I looked into when I considered starting an Internet business.

In addition to a probable state law requiring registering the name, if it is NOT registered it could be stolen by another person or company, or used by another company not realizing the duplication.

Talk to an accountant you trust. They can tell you the best setup for tax purposes, how to protect personal assest from suits against your business, etc.

Another good resource and its free (paid for by your tax dollars) would be SCORE.

That stands for Service Corps off Retired Executives. They will try to match you up as much as possible with someone with expertise germane to your particular business.

this is all based on personal experience, in Texas, and reading a bit on the subject (nolo.com is great, and they have books as well), so may vary. Not a lawyer, just a guy who started a few businesses.

So, as far as how to organize:

A sole proprietorship is easiest to create and register, and cheap, but it means income is your own as well as any legal exposure. Your business = you.

A corporation is a separate entity in both regards and if I remember right costs about $350 to set up and register. It comes with some additional pains like the need to file “franchise tax” forms each year. Income can be the corporation’s and legal exposure for you is limited somewhat. Your business = it’s own entity.

The advice I received from a lawyer and accountant basically boiled down to if your business is anything more than a hobby, you should go ahead and set up the corporation. (there are different types and it’s probably better to just read through those)

Other things to consider… Are you going to charge sales tax to anyone? If so you need to register with the state as well and get a permit. Your business may also need a permit depending on what you’re doing. If you’re going to do business with any public entities (government) then sometimes they have additional perks for women and minority owned businesses, it’s worth looking into requirements if that’s a possibility.

If your husband is going to participate, then it can make sense to put him as a partial owner, but if not you don’t really need to. As your husband he gets your assets anyway if something happens to you, right? This would be no different.

As far as better for taxes, my understanding is that it depends on so many things it’s better to just sit down with someone. Your current household income, how much business you expect to do, whether or not you intend to turn a profit right away, and whether you will draw a salary are all considerations for both business type and taxes. Pay someone for a few hours of their time to get some custom answers up front. They’ll probably have additional advice that can save you time and confusion down the road.

Good luck with it, let us know when you get it going so we can support your venture.