Do I need a business license?

You should write up a business plan in order to ensure that you’ve allowed for all costs, etc and to give you a way of measuring your progress.

The smart way to do it is write up a business plan like jvgr says.

At the very least, talk to an accountant. They should really be the one to answer the license question. The reason you would need to get a business license is for tax reporting purposes.

If it’s just you working for your new company then you can technically operate as an independent contractor (which means you don’t need a license).

I’m sure you want to keep most of the money so in order to figure out what way you can do this in order for the government to let you keep the most money, you’ll need to speak with an accountant.

Good luck.

Business Plans help you to identify all of the things you should be focused on when you start the business. In additional to that you should try to put together five year profit and loss projections (that are realistic) so that you can plan for how your business will grow.

Also, take bodyhead’s suggestion and talk to an accountant to make sure you understand your responsibilities as a business owner. You should also speak to an attorney to make sure your contracts, etc are all valid and will protect you. Then you should look into insurance.

Understand the laws and your business model.

A business plan is used for financing, but the reason they request it is to understand your goals and your “plan” for success. You don’t need a business plan, but it may help you to recognize your goals and achieve them.
As for a business license, the requirement for that is determined by your local government. If you have a bunch of trucks and a store front you should probably get one, but if you’re doing business from the computer I would probably wait until the city comes asking for one then say, oops, sorry and promptly go file for one.

Okay I goofed. I meant to title my question “Do I need a business plan?” not “Do I need a business license?”

I know I need a business license and I’m pretty sure I know how to go about obtaining one. I live in New York City, and I plan to run my business online. I will be the sole owner/employee. I will be selling two e-books and perhaps other digital media for download. The expenses will be super low since my products are free to store and make. Other than that I feel that I will only have to pay a web hosting company a monthly fee for supporting my site. Am I missing anything here? It should be a pretty simple operation.

Some of you suggested seeing an accountant, but I’m confused as to why. Can someone please explain? I sort of understand the lawyer. Anyway, you guys have been great. Thanks for the help.

-Link

It sounds like you have outlined a simple business plan above. If your not seeking financing I don’t see any reason to get one unless you want to expand further in the future.

Strange, I thought I answered this again this morning.
Must not have pushed Answer

The main reason to talk to an accountant would be to ensure that you know the tax laws regarding your business. You probably don’t have to charge tax because you are not providing them with a physical product, but it would be better to know than to have the IRS tell you you should have been collecting taxes.

it’s possible that nothing may happen, or that you can say Oops like Judi suggested. Personally, I’d rather pay an accountant a couple hundred bucks to know than end up paying thousands in fines.