Business registration

Before getting down to the paper work, you need to decide what form of business you want to have. For the best recommendation that suits your current business needs, consult your accountant. Setting up a new business, as a legal entity in the United States, is a fairly easy task.

LLC and Corporation

For a small fee they do all the paperwork filing for you, and send you the final documents. A good resource that helps you with this is Mycorporation.com or DBA. If you choose to form an LLC or Corporation then you may need an additional filing with your state.

No matter what is your business form, you need to file a fictitious business name or DBA (doing business as) with your County Clerk-Recorder's Office. Once filed, you're required to publish the name in a local newspaper to complete the registration. There you'll be asked to search for your new DBA to make sure it is available before submitting the application.

Business Bank Account

With a copy of the fictitious name filing on hand, you now can go to the bank to open your new business account. Depending on your bank's new account policy, they may require you to submit proof of having published your fictitious business name, before completing the account opening for you.

Resale License

You'll be required to report and pay the withheld tax to your State. The resale license enables you to purchase products from your wholesaler without paying sale tax. As an ecommerce retailer, you'll need to obtain a resale license at your State Board of Equalization's local office. However, you could be obligated to withhold sales tax from those customers who reside in your State.

Follow the all of the steps to complete your PayPal verification process, which includes requiring you to submit your bank account deposit information. After you are verified, you are ready to accept PayPal payments, and can apply for Paypal Pro, a merchant account processing service, when you are ready to sell your products, online.