One common mistake many eager Internet business owners make is that they just grab a domain name, put up a basic website, and expect the profits to flow in. That’s not how a legitimate Internet business works.
As with offline businesses, it is important to register your business name for several reasons:
- It’s the law in most locations (including the United States)- people need to know who is running the business.
- Registering your business name prevents other people from using it. After spending months or even years building your brand and business, you don’t want someone else using your hard work and/or ruining your brand’s reputation by taking the same or similar name because you didn’t register your business name.
- You can get tax benefits, especially if you file as a limited liability corporation (LLC) or incorporate your business (INC).
- Most people feel more confident and are more willing to do business with companies that are either incorporated or an LLC than if the business is not.
There is one important exception to having to register your business name. If you plan to use your name as your business, you do not have to register that.
It is recommended that you talk to one or more qualified professionals (including lawyers and/or accountants) about your own specific situation and whether incorporating your business, filing it as an LLC, entering into a partnership, or being a sole proprietorship is best for your particular situation.