What legal processes do I have to go through to start my online business?

I am starting my own online business. It is small, it will be run out of my house (in Los Angeles, CA), I will be the only person involved and I will be selling art pieces that I create myself. I have researched many websites including the tax franchise board, the IRS, the Small Business Association, but I find them all so overwhelming and confusing. Do I have to charge sales tax? Do I need a Federal Tax ID? Do I need a State Tax ID? Do I need a California Seller's Permit? I can't seem to find a place that narrows down the start-up requirements. Thanks!

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You need to charge sales tax to anyone you sell to in CA, so that means tthat you need a state sales tax and seller's permit.

You do not need a federal TAX ID or a state tax id - you can use your social security number and just complete the appropriate schedules.

You should go and register your business as a DBA (doing business as) at the county clerk's office. You give them money, a name, you can be your name DBA yournameart.

If you sell to a dealer > $600 / year, you need to send them a 1099 showing gross money paid to them - you do not need to do this for any customer.

Or,

you can just sell on ebay, not file anything with anybody and not even call it a business - it's technically tax fraud, but there are thoussands of ebay businesses that do it all the time - the best bet, though, is to not sell to anyone in CA.

If you start small by targeting the online auction sites you do not need to file. However, as an artist I would want to sorta of "brand" myself and thus I would probably get a business license, which you can get from your local business licensing office that you find on your secretary of state website.

I would try to target online art relates websites like etsy.com to start.
Hope this helps!

The best routes to take are to research the process of starting a business as well as the industry you're interested in.

I recommend checking out the SBA, Entrepreneur, The Start Up Journal & Nolo. All 4 are great informational resources for the new/small business owner. I posted links for you in the source box.

Research, research, research 鈥?this cannot be stressed enough. Read as much as you can. Here are some book titles that are relevant:

* Starting an Online Business For Dummies, 4th Edition by Greg Holden
* How to Start and Maintain A Successful Online Business by Kelly Thornton
* The Complete E-Commerce Book: Design, Build, and Maintain a Successful Web-Based Business by Janice Reynolds

* Small Business Start-up Kit for California by Peri Pakroo, Barbara Kate Repa
* How to Start a Business in California by Entrepreneur Press

There are plenty of free informational resources out there. Check the source box for links to articles.

Hope that helps! I wish you much success & happiness in all your ventures!