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It is essential to know the difference between sole proprietorship vs LLC for online business when starting a new online business.

That is mainly because a limited liability company and sole proprietorship have different tax treatments and legal requirements.

You must understand the differences between both these entities so that you’re making the right choice for your new venture.

Let’s break it down and start talking about both of these entities separately first.

Sole Proprietorship vs LLC for Online Business

Before we exactly tell you which one is better than the other, let’s discuss each of these individually along with each of their advantages and disadvantages.

What Is a Sole Proprietorship?

A sole proprietorship is an unincorporated business that has only one owner.

This is the least expensive and simplest type of business to establish.

An individual who chooses to operate the online business by themselves becomes a sole proprietor by default.

For instance, if you are operating as a freelancer, retailer, running an online business, or selling goods and services, you automatically become the sole proprietor.

That is unless you have opted for a different business structure.

It is quite simple to identify a sole proprietorship online business.

That’s because the business’ name will be the same as the owner’s name.

That said, sole proprietorships can also operate under a trade name or brand name.

One of the main characteristics of this is that there isn’t any legal separation between the owner and his or her business.

That means they are personally responsible for their business’ debts.

Advantages of a Sole Proprietorship

If you choose to form a sole proprietorship, you will get the following benefits:

• Less or No Paperwork

You won’t need state paperwork unless there is a specific license you are looking for such as a business license and/or occupational license.

We recommend that your business files a fictitious name or “DBA” with the state.

• Usually, No State Filling Required

You don’t require to complete annual state filings unless there is a specific industry filing that’s needed by your industry.

• Easier Tax Filing

All the profits and losses go through the business owner’s personal tax return.

You can report them on a Schedule C tax form that you can file along with your personal tax return.

• Tax Benefits

There’s a possibility of enjoying the tax benefits of being self-employed.

This can be a deduction of certain business expenses like business use of your car and home, utilization of self-employed retirement plans such as SEP IRAs (Simplified Employee Pension Individual Retirement Accounts).

It can also be being able to write off regular business expenses like travel and marketing.

Disadvantages of a Sole Proprietorship

With a sole proprietorship, you will have the following drawbacks:

• No Liability Protection

You will have no liability protection against lawsuits, commercial debts, and other obligations.

By this we mean someone can sue you personally for your commercial activities which in turn puts all your personal assets at risk.

• Difficult Equity Financing Acquisition

Outside of your family and friends, it is almost impossible to secure any equity financing for a sole proprietorship.

That is because a lot of investors find investing in a sole proprietorship business very risky.

This ultimately means that your funds will be limited, prohibiting the growth and development of your business.

• Difficult To Establish Credit Line

Establishing a business credit line for obtaining debt financing is difficult for a sole proprietorship.

That’s because a lot of financial institutions tend to categorize this request as a personal loan instead of a business loan.

• Low Market Credibility

There is also lower market credibility when you aren’t operating under a trade name.

This can be resolved easily by making a DBA name (Doing Business As) with the secretary of state or the state’s department of revenue.

However, this comes with additional and ongoing fees.

What Is an LLC?

An LLC, or limited liability company, is a legally separate business entity that is made under state law.

This is a combination of different elements of sole proprietorship, corporation, and partnership and offers a ton of flexibility for business owners.

A company registered as an LLC can decide its operational processes, tax treatment, and management structure.

A single business owner can form a single-member LLC.

If there are multiple owners, then they can form a multi-member LLC.

You will know a business is registered as an LLC because the legal name of the business will end with “limited liability company” or simply “LLC”.

One of the defining features of LLC is that it offers the owner or the owner’s liability protection from obligations and debts of their business.

In the normal course of business, a business creditor or anyone who wants to sue the business cannot come after the company owner’s personal assets.

Advantages of Forming an LLC

If you are opting to make an LLC, you’re essentially making a business entity completely separate from yourself.

In simpler words, you aren’t your LLC, and neither is your LLC is you.

If you are opting for this, you will avail of the following benefits:

• Credibility and Liability Protection

Your market credibility will be at a higher level.

You will also get liability protection against lawsuits, commercial debts, and other obligations.

That is as long as you have set and maintained your LLC correctly and haven’t mingled your personal and commercial assets.

If you avoided personal guarantees, your liability protection will also remain in place.

No creditor can go after all your personal assets in case there’s a lawsuit against your business.

• Easy Debt Financing and Equity

It is significantly easier to get debt financing and equity if you’ve got a separate business entity and a well-established credit score for your business.

Instead of a personal loan, you can pick from small business loans which include leases, trade credit, and factoring.

• Multiple Tax Benefits

You have the option to combine some of the best of the incorporation worlds.

That is by electing your single-member LLC either to get taxed as a sole proprietor, which will be the standard election or an S-corporation.

When you elect your tax treatment as a sole proprietor, it means that all your losses and profits will flow to your personal tax return.

When you elect your tax treatment as an S-corporation, all your losses and profits flow through your personal tax return.

You get the option to reduce FICA taxes if you establish a “reasonable salary” and receive the rest of the profits as dividends.

This way only your salary is subjected to FICA withholding.

Lastly, you get perks of tax benefits since you are self-employed.

Disadvantages of Forming an LLC

Even with so many benefits of forming an LLC, there are some drawbacks too, including:

• Requires Paperwork and State Filing

There will be state-needed paperwork necessary which also includes any specific industry licensing.

There will also be annual state filings along with the associated fees.

This also includes any specific industry licensing fees.

• Pay More Taxes

Other than paying the self-employed, local, state, and federal versions of FICA taxes, you may also need to shell out for state business taxes and unemployment taxes.

The cost to complete an LLC’s tax return is more compared to that of a sole proprietorship.

Is an LLC Always the Best Option?

It is obvious that an LLC has a lot more benefits than a sole proprietorship, but is it always a good idea to choose that?

You will find asset protection consultants constantly marketing to business owners that opting for an LLC is the way to go.

That said, it isn’t always the case.

In some cases, entities are better suited for a sole proprietorship.

That’s because all the extra costs of having an LLC do not provide them with any benefits significantly in comparison.

Additionally, since an LLC provides liability protection against your business’ commercial acts, there can always be some big-shot attorney who will search for any loophole in your business set up to go after your personal assets.

In some cases, courts tend not to look favorably upon single-member LLCs.

Then the question arises in legal proceedings as to whose exact interests are technically being protected against if you are your LLCs only member.

Final Thoughts

You are going to come to a crossroads when you have to choose between sole proprietorship vs LLC for online business.

Just like several other questions that arise for your business, there isn’t technically a right answer for this.

While obtaining financing or funding for your business can be quite challenging, the protections and advantages you benefit from being an LLC cannot be understated.

That said, initially, as a small online business, it’s not the worst idea to start as a sole proprietorship.

What you need to keep in mind is what your business goals are and what you’re looking to achieve ultimately.

We recommend seeking help or advice from professionals if you aren’t sure.

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Online businesses have become a huge part of the business market.

In fact, this continues to get more popular day by day.

With millions of people starting online businesses, you might be wondering whether online businesses are legal or not.

Having a legal business ensures you have security and gives you more credibility.

If you’re looking to know the answer to your how to make my online business legal question, we’ll tell you how to do so below.

How To Make My Online Business Legal

Online businesses are relatively a new brand of retail.

You must comply with the general corporate laws and local and international laws that apply to your business.

You also have to comply with digital-specific provisions around data privacy, electronic payment processing, and web accessibility that could apply to your business.

Below are the important considerations you need to keep in mind to make your online business legal.

Taxes

Every state and separate locations come with their own sales tax.

Washington D.C. and 45 states impose a state-wide sales tax.

That said, different counties, cities, and special taxing districts can also add their own local sales tax in addition to the state tax.

If you fail to calculate and collect the right sales tax amount correctly, it could create a loss in your profit margin.

Additionally, this will add more stress to you during tax season.

If you import products from foreign country suppliers valued at more than a certain threshold, your imported goods can get subjected to customs duties.

In addition, there may be other taxes and tariffs that may be applied if your shipping in goods in larger quantities regularly.

Next, if you’re selling your products overseas, the customers from those countries may have to shell out for import taxes and duties.

You have the option of settling these via pre-paid shipments on their behalf.

You can also bundle them at an international price.

Several states also introduced taxation on items and activities that harm the environment to promote sustainability.

For instance, you have to pay an additional $0.05 recycling fee for plastic containers weighing under 24 ounces in California.

For over 24 ounces, you have to pay $0.10 under the California Redemption Value Act.

For more clarity, it is highly recommended that you speak to your local tax authorities or a tax professional.

They are experts who will help you understand the specific circumstances that could affect your products.

They will also give you insights into how much you have to charge for taxes as per your location.

Company or LLP

You must have an LLP or private company for your online business.

This will help deal with tax-related elements or VAT and is your identity in the marketplace.

Also, there’s a slim to no chance of generating any profit from your online business without good performance and reputation.

If all your paperwork is in order, it is easier for you to get attention to your business.

When you are starting your company, there are a few important things you need to remember.

Your company needs to have an appropriate name with a registered office address, a minimum number of capitals, directors in every department, and more.

When you have filled out all these requirements, your company will function as a registered company.

Marketplaces prefer dealing with registered companies, so this is the most valued legal requirement.

Payment Gateways

These are essentially the lifeline to process your customer’s payments securely.

The major emphasis here is on “security”.

That’s because there can be a regulatory fine if there is a payment data breach.

You’ll also have losses to your own business not just monetarily but also damage to your brand image.

Unfortunately, security breaches are quite common.

Last year, for instance, a payment processor admitted that more than a million debit and credit card accounts got exposed.

That is due to cyber attacks in North America.

As such, you must stay vigilant when you are choosing a payment processor.

Prioritize solutions with GDPR compliance (for selling in Europe), DCI-PSS compliance, Integrated security and anti-fraud protection, and HTTPS connection (SSL certificate) for all payment operations.

Trademarks, Patents, and Copyrights

These three are considered as business intellectual property and are all protected by their respective laws.

Below is how the United States Patent and Trademark Office categorizes each of them.

• Trademark: A phrase, word, design, and/or symbol that distinguishes and identifies the source of the products of one party from others.
• Patent: This is a limited duration property right relating to an invention that the United States Patent and Trademark Office has granted in exchange for public disclosure of that particular invention.
• Copyright: This is meant to protect the works of authorship like music, writings, and artworks that have been tangibly expressed.

In simple terms, this means that as long as you take all the necessary and appropriate steps concerning your intellectual property, you may get legal protection.

It’s a kind of protection that will prohibit other companies from using your intellectual property without your permission.

Similarly, you cannot use someone else’s intellectual property to make a profit without their written consent.

For example, if you want to produce and sell t-shirts and merchandise with characters from Marvel, you need to get all the appropriate permissions to avoid any legal issues.

Additionally, you need to consider copyright protection for your online business website.

Some of the laws that apply to your website you need to keep in mind include:

• Copyrights and patents can protect any unique aspect of a customized online business platform.
• Your online business’s website design elements like visual content, logos, and custom illustrations can also get protected by copyright laws like DMCA (Digital Millennium Copyright Act).

Shipping Restrictions

Shipping your online business products can be mind-boggling.

That is because logistic companies have different restrictions, rules, and rates for shipping various kinds of products.

Most of these logistic companies will have a list of restricted items, and these include:

• Aerosols
• Air Bags
• Alcoholic Beverages
• Ammunition
• Cigarettes
• Dry Ice
• Explosives
• Fresh Fruits and Vegetables
• Gasoline
• Nail Polish
• Perfumes (containing alcohol)
• Poison

Some companies will allow you to ship these restricted items, but with additional fees and paperwork.

You have to take this into account when you are evaluating shipping providers and integrations.

You also need to consider the fact that some states and countries have different shipping policies.

Inventory

If you are holding a substantial amount of inventory, you need to check with your real estate deed, lease, or zoning codes.

Doing so will help you know if there are any restrictions on running an online business from your home.

Even if you are running a small online business, certain property laws may apply to you.

The local homeowners’ association might not be too keen on letting your online home-based business in the neighborhood if it doesn’t comply with the homeowners’ association rules and regulations or zoning laws.

Age Restrictions

When launching a website for your online business, it must comply with the COPPA (Children’s Online Privacy Protection Act).

There are several regulations that this act includes.

One that’s most likely applicable to your website is the inability to collect any personal information from children under the age of 13.

If your online business particularly targets a younger audience, you will need to abide by COPPA regulations.

Else, you can be fined more than $40,000.

Business Insurance

You will also need to apply for business insurance to protect your online business.

There are several options available that you need to choose from and these include professional liability, general liability, commercial liability, product liability, and home-based insurance.

You must be doing ample research on each of them to find out which suits your needs perfectly.

Making Your Online Business Legal

We hope we were able to answer your question how to make my online business legal.

To summarize, in order to sell your products online legally, you have to apply for a sales tax ID (number).

After that, you have to make sure that you collect and report all sales taxes applicable at the state and local levels.

Additionally, your online business must be in compliance with digital customer protection acts such as COPPA, GDPR (for European sales), and CCPA (for sales in California).

You must also do ample research to find out whether you need any special license and/or permits to operate your type of online business.

Lastly, you must determine if any kind of other laws is applicable.

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Many new online business owners falsely believe that just opening up a website would mean that people would visit it to buy things.

While there’s no denying that a website can sell your products 24/7, the reality is some people might not even find it.

Hence, we keep getting asked by our readers “How do I get my business noticed online?”

You’ll be surprised to know that there are many ways you can do that. Some of them won’t even cost you a dime.

Let’s find out more about it below.

How Do I Get My Business Noticed Online?

To get your business noticed online, below are some things you can consider doing.

Create Social Media Accounts

You must create profiles on several major social media sites, such as Twitter, Facebook, Instagram, and Pinterest.

Before you even launch any social campaigns, spend some time figuring which social media website or websites your potential customers frequent.

Once you have an idea about that, you can create your profiles on those websites.

However, just creating a social media profile is not enough.

It is crucial that you post content regularly, at least once or twice a week.

You can take advantage of services like Hootsuite to centrally manage all your social media posting.

Focus on the Value You Provide

Your potential customers and clients do not care how great your company is; they only care about whether it can help them or not.

That means your marketing should mainly focus on the problems your products can solve and what can make your customer’s lives better.

For instance, if you are selling a weight loss product, you will need to emphasize providing better health, feeling good about yourself, or having more energy and stamina rather than the product itself.

Your clients are looking to buy products to fulfill something in themselves, so that’s what you target.

All your marketing tactics, from your email messages to social media engagement and everything in between should focus on what your potential customers need or want and how it will benefit them.

Value will not only lead to more sales. Consumers will also share these with other people, which, in turn, benefits your business.

Get in Touch With Market or Industry Influencers

You wouldn’t want to use people and they wouldn’t want to help you either if you are approaching them inappropriately.

That said, building mutually beneficial relationships with people who have a substantial amount of followers can benefit your business tremendously.

Look for people who are particularly influential and have the ear of your market authentically with something of value.

For instance, you can ask them to review your products or simply post about your products on their social media sites.

Ask Help From Close People

Ask your family members, close friends, and even employees to get the word out about your new business.

Even if you do not have too many followers on your social media sites like Twitter, Pinterest, Instagram, YouTube, or Facebook, chances are that all of your friends, family, and employees do.

Request them to follow your business on all your social media profiles and even share it on their personal profiles.

To entice them, you can reward people for sharing your social media profiles, website, or products, by giving them a referral discount, such as a freebie or 10% off on their first purchase.

Do a Giveaway or Hold a Contest

Building on what we told above, everyone likes winning or receiving free products.

The best way you can do so is by holding a contest or doing a free giveaway.

This automatically attracts people’s attention to your business.

Of course, you don’t have to give away a large portion of your products or services.

All you need to offer is something that has a decent enough value that entices people and provides them something that would make them visit your website and buy your products.

Be sure that you check with the laws in your state and country when you are running a contest.

You need to ensure that you include all the necessary disclosures to legally run your contest.

You can also use a gift option by asking people to subscribe to your website.

This will give you a list of potential client’s email addresses.

This way, you can continue building trust and rapport with them.

Create a Social Media Advertisement

Ad platforms on social media sites such as Instagram and Facebook give you the option to very specifically target an audience.

Of course, you have to spend money on advertising your website and/or products.

As per Facebook’s policy, you have the option of choosing between a daily or a lifetime budget.

They also offer a standard cost per thousand impressions bid and even cost per click bid.

You will need to choose what works best for you based on your budget and the reach you are looking for.

An interesting strategy would be running advertisements on your competitor’s Facebook page.

Targeting Facebook pages, such as shows and magazines in your niche, that your potential customers visit is also a great strategy.

Curate Content From Others

Searching for great and interesting content from others can also help.

Just make sure you comment and share them to show off your expertise and substantially increase your influence.

When we say curated, we do not mean copying another person’s content.

Rather, it’s writing about all the interesting things you found on their page and linking their website to it.

For instance, if you are doing this for a blog, a pingback lets the content owner know that you have shared their link.

This will draw their attention to your website and hopefully even engage with you.

Alternatively, you can tag their profiles on social media sites when you are sharing their content.

Sharing social media posts is a brilliant way if you are looking to build relationships with others who can also share your content, benefitting both parties.

Make Yourself the Go-To Resource for Information

Another great way to pique people’s interest in your website and become invaluable is by constantly sharing trends, news, and other top resources that your market is looking for.

This is even if it means to link or reference other sites.

The best way you can do this is by using Google Alerts or using a feedreader.

This way, you can track all the latest trends and news from your preferred resources and then sharing that information with your market.

This will not only attract people to your business but also show that you are an industry expert.

Getting Your Business Noticed Online

We hope we provided you with the answers you were looking for to the question “How do I get my business noticed online?”

Marketing your business has dramatically changed from what it was from as recent as a decade ago.

The internet and social media have completely changed marketing.

There is no way you can attract people to your business by just sending one-way messages about your business.

Your main strategy should be to engage with potential customers.

Customers want to know more about you and your company.

The more you engage with your customers, the higher the chance of them being loyal to your brand.

Most important of all, they will spread the word by telling others about your business.

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When you are starting a business, there is a checklist of things that you need to do.

It is typically very long and continues to grow as you keep checking off items on that list.

However, among all those things to do, people always tend to wonder whether they should apply for business license online or not.

A business license is important if you want to register officially and do business legally in your state.

There is a lot to cover with a business license, so let’s talk about it more in detail below.

What Is a Business License?

Defining a business license can be a bit tough mainly because it refers to several different types of permits and licenses.

In simple words, a business license is like a document issued by a government agency.

It will grant you permission to start and operate your business in a particular location where that agency governs.

As such, the term business license could refer to something like a local business operating license.

This license will allow you to conduct your business within a specified geographical location, such as your town or city.

Alternatively, it can refer to a seller’s license that permits you to sell specific products in the specified area.

The Different Types of Business Licenses

The specific type of business license that you will require completely depends on where the location is and the industry.

That means you will need to obtain separate business licenses at the county, city, and state levels.

In addition, if an association, commission, or board regulates your industry, there is a possibility that you have to present a certification from those bodies before you apply for your business license.

You will also need to check whether your local government comes with any specific license policies related to your industry.

If a federal agency regulates your industry, you will also need to obtain a federal license to start your business.

If you will be running a business in any one of the below-mentioned industries, the SBA states that you will need to apply for a federal business permit or license:

• Aviation
• Agriculture
• Nuclear energy
• Fish and wildlife
• Mining and drilling
• Alcoholic beverages
• Commercial fisheries
• Maritime transportation
• Transportation and logistics
• Radio and television broadcasting
• Firearms, ammunition, and explosives

How Much Does a Business License Cost?

As stated earlier, the specific licenses you require will vary by state and industry, which means the cost of your business license will also vary based on these factors.

Typically, you can expect to pay a filing or processing fee in addition to the cost of the business license.

A business license can be as cheap as $50 but can go up to hundreds of dollars depending upon the type of business and where it will be.

Since business licenses come with an expiration date, you will need to shell out more money to renew them.

For example, if you want to apply for a business license in Alaska, it will cost you roughly $50 for either a one- or two-year license.

Once it expires, you will need to pay the same price to renew it.

On the other hand, if you want to obtain a business license to start a child care center in a state like New Jersey, you have to shell out for a three-year licensing fee.

That fee would be anywhere between $110 and $250, depending on the child care center’s size.

Once again, when your license expires, you will need to pay the same amount to renew it.

It’s clear that countless factors affect the cost of a business license and other licensing requirements.

For this reason, the SBA advises people to check with the agency issuing and approving these licenses.

It will help you know exactly what you need to do and how much you have to pay to obtain your license.

How To Apply for Business License Online?

Below are the general steps you will need to follow to get your business license.

Step #1: Research

Do proper research of all the regulations in your area where you are doing your business to determine the type or types of business licenses you will require.

If you aren’t sure of the regulations that apply to your particular business, get in touch with your state’s governing agency to get help.

Step #2: Submit

Submit your application with all the necessary documents, such as your entity paperwork, to obtain your license.

You may have to shell out a filing or processing fee to submit your application.

You may also have to wait to know whether your application is approved or not, depending on the state.

Step #3: Receive

Once approved, you will receive your business license, which allows you to operate your business legally in the specified area.

Step #4: Renew

Once the license expires, you will need to renew it according to the state, city, or county’s regulations.

How Long Does It Take To Get a Business License?

Be prepared to wait anywhere from a few days to even weeks to obtain your business license.

The time it takes can depend on several factors, including the state and the type of license you have applied for.

For instance, if you have applied for a local operating license to sell ceramic bowls, you will receive your license faster than receiving a state or federal liquor license.

It’s clearly difficult to know how long it will take for your to obtain your business license.

There are a few things you can try to expedite the process.

Make sure you follow all the directions and submit the forms without any error, along with all the necessary documents.

This will ensure that there won’t be any unnecessary hurdles in obtaining your license.

Apply for Business License Online: In Conclusion

We hope that you have a better understanding of how to apply for business license online.

We recommend consulting the SBA for any assistance.

Visit the SBA small-business resources page and find a detailed list of requirements by simply entering your zip code.

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Selling goods online has grown in popularity over the last decade and much more since the pandemic.

With the constant growth in e-commerce, it’s no surprise if you’re wondering, “Do you need a business license for an online business?“

It’s a given that having a business license along with other required permits gives your business more credibility, but at the same time, it allows you to operate legally.

Let’s figure the answer to this question and several other considerations you need to consider when you’re starting your online business.

What Is a Business License?

In simple words, a business license permits you to run your business.

The exact business license you’ll require will differ from one state to another.

However, its purpose stays the same: to show you’ve got the government’s approval to operate your business in the area you have been approved for legally.

Do You Need a Business License for an Online Business?

If you’re looking for a short answer to whether you need a business license to sell online, then it’s a yes.

Not only is it a requirement but a crucial part if you want to establish your business as legal and legitimate.

That said, obtaining a business license isn’t as simple as just going down to the local office and filling up a form.

Factors Affecting Licensing

The license you need will depend on the location you will be operating from, the kind of products you’re looking to sell, and your business needs.

Different states will have different laws, so it is important to know which one applies to your business.

After all, you do not want to go through all that effort and hard work to just end up getting fined because you did not do the correct thing.

In addition to state, there is a possibility that there are different laws and requirements to obtain your license for different cities.

Business licenses are issued either at a federal, state, or local government level.

You will need a federal license if the products you are selling are regulated heavily by the FDA.

These products can include medicines, animal products, explosives, alcoholic beverages, and the likes.

States need licensing for certain occupations and the sale of certain products.

For this, you will need to look for your state’s website to be sure about the license you need to apply for.

Almost every business will need to apply for a license; this also includes county and city licenses.

There’s a possibility that you may need to get more than one license too.

Is a Business License Necessary to Sell Online if You Already Have an Existing Brick and Mortar Store?

If you already have an existing brick-and-mortar store, then the good news is you don’t need to apply for an additional business to sell online.

The crucial thing here is that you should have a legitimate business license to enable you to sell your products and register you to pay your taxes.

Requirements for Selling Online: Six Common Types of Business Permits and Licenses

Even though we are constantly referring to it as a “business license”, there are many requirements to sell online that you will need to go through to start your online business.

Of course, a bunch of them may not even apply directly to you.

Still, it is essential to know them all so that you are sure you’ve applied for the correct operating paperwork before you begin selling online.

Business License (General License)

A business license also referred to as a “business operating license” or “general license”, permits you to operate as a company in a specified location.

This location is typically your state, county, or city.

Regardless of whether it is online or otherwise, almost every business needs a proper business license to operate.

The requirement to obtain this particular license varies depending on the area, along with the fees for it, which is typically low.

Keep in mind that you will need to renew your business license every few years.

Seller’s Permit

If you are selling products that qualify to be taxed, then a majority of the states will need you to apply for a seller’s permit, whether your company is only online-based and/or has a physical location.

You will need to collect sales tax, and that’s exactly what a seller’s permit will allow you to do.

At the same time, this permit may enable you to buy specific products from suppliers without paying a sales tax.

This happens through something called a “resale certificate”.

It shows that you will sell the products you’re purchasing through your business, either retail or wholesale.

Bear in mind that this requirement can vary from one state to another, so it’s advisable to check with your local jurisdiction to know if you do need this permit.

In addition, you may need to obtain multiple seller’s permits for every state if you are operating from multiple states, including housing inventory.

In states like Idaho and California, you can apply for something called a “temporary seller’s permits”.

It will allow you to sell your products online temporarily if that is what you’re looking for.

Sales Tax License

A crucial part of selling your products online is charging your customers a sales tax.

It is mandatory and not an option, which means you will incur those fees if you don’t do it.

For this, you will need to apply for a sales tax license.

There’s no surprise that this will differ from state to state, and even the sales tax differs from state to state.

It’s wise to check in with all of your local jurisdictions and municipalities wherein you will be doing your business.

Your state may also need some additional sales tax permits, which means that you will need to check about this too.

Employer Identification Number

The Employer Identification Number or EIN is imperative for every business.

It is a kind of social security number that identifies you as a legitimate business.

It also enables you to stay compliant with all the necessary regulations and taxes.

It is essential, especially if you will incorporate it as a business entity rather than a sole proprietorship.

Another thing that this number will enable you is to get a business bank account.

It may seem secondary, but it is important since the earnings from your business need to go into a separate business account to keep it separate from your personal assets.

To get your EIN, you would need to visit the IRS website.

“Doing Business As” License

Typically, most businesses will register their business name when they are registering it with their state.

That said, not every business entity is required to register; these include general partnerships and sole proprietorships.

In cases like this, the business name will default to your legal name.

That said, if you aren’t looking to operate your business with your name or if you’re looking to operate it under a business name other than the one you’ve registered with the state, you will need to consider getting a DBA license.

This license permits you to operate under a trade name.

If you are using another name, you may likely need your DBA license to execute specific contracts like opening a business bank account.

While this may apply to only specific businesses, it’s advisable to check with your state to know exactly what the regulations are around this license.

Home Occupation Permit

It’s quite likely as an online seller that you are operating from your own house.

If that’s the case with you, you will need to apply for a home occupation permit.

This license is quite common, especially for businesses that ship their products from home.

This license is also essential if you are hiring employees for your business.

Like always, different states, counties, and cities come with different rules around whether a home occupation permit is necessary or not.

Ideally, we recommend getting this permit.

It can help avoid breaking regulations if you do certain things like hanging a commercial sign or having a lot of foot traffic from seeing customers or shipping companies.

How To Determine Which Business License You Need To Sell Online?

This may not come to you as a surprise, but your local jurisdiction will determine the kind of license you will need to open your online business.

Some businesses may need specific permits and licenses that we may have not even mentioned in the list above as they may be proprietary to your area.

We recommend checking which license you need federally and on the county, town, and state levels.

Furthermore, the kind of license you need to apply for may also depend on the kind of products you will be selling.

For example, if you are selling jewelry, you will need a different license from selling fireworks.

Regardless of everything, we cannot keep stressing how important it is that you know exactly which license or permit applies to you and your online business.

If you have any doubt in your mind, it is ideal that you consult with your business attorney during this process.

It will ensure that you are applying for the right permits or licenses necessary for you to sell your products online.

How and When To Apply for an Online Business License?

After correctly figuring out the type of business permits or licenses you need, you have to follow all the steps to get each specific license.

These can differ as some may require you to mail in forms, apply online, or show up in person.

Keep in mind that a majority of the business licenses do come with an expiration date after a certain amount of time.

We recommend keeping a note in your calendar of the expiry date so that you do not let your licenses lapse.

When it comes to when you should be applying for the business license to sell online, this can vary with the location from where you are selling.

In certain states, it may be necessary for you to apply for the license even before you begin selling.

In other states, you may have the option to grow your business to a specific size before applying for your permits and licenses.

As we said before, consult your local business resources and legal resources to help you understand your exact timeline.

What Is the Cost of a Business License?

Every state, county, and city has its own cost for a business license.

The cost will also differ depending on what you are selling.

Typically, you can expect to shell out anywhere between $50 and $400 or even more.

There will be separate costs for fingerprinting as well as other kinds of processing.

When it comes time to renew your license, some states may ask for the same amount, whereas others may ask for a lower amount.

Whatever the case may be, make sure you renew your license on time.

If you don’t, you will end up losing a part of your revenue to settle the penalty.

What Do You Need When Applying for a Business License To Sell Online?

You must be looking into all the specific requirements for your local jurisdiction to know the things you exactly need to apply for a license to sell online.

However, you need to have a couple of documents on you beforehand to make the process a little smoother.

Ensure that you have all the information about your business entity type, any inspections necessary, permits specific to the products you are selling, the name that you are operating under, and in some cases, you may need the EIN too.

Opening a Successful Online Business: In Conclusion

We hope you got your answer to “Do you need a business license for an online business or not?”

We cannot stress enough that this completely depends upon where you are selling from.

Hence, make sure you are doing ample research and speaking to the right people so that you obtain a business license with minimal stress.

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When it comes to starting an online business, one question that comes into people’s minds is: “Do I need an LLC for my online business?”

We’re all aware that an e-commerce store has the potential to make money and grow substantially, but it also carries a moderate amount of risk.

Having an LLC could be the right choice for you and your online business if you want to protect your assets, grow your business, and gain credibility with customers, among several other benefits.

However, let’s not get ahead of ourselves and tell why you should get an LLC for your online business below.

What Is an LLC?

LLC is an acronym for Limited Liability Company.

It is a US business structure offering personal liability protection for a corporation and pass-through sole proprietorship or partnership taxation.

Forming an LLC is considered one of the simplest ways to structure your business to protect your assets if your business gets sued.

LLC’s can be owned either by one or more people.

If more people own it then they are known as LLC “members”.

An LLC with a single owner is referred to as a single-member LLC whereas if there is more than one member, it is called a multi-member LLC.

Do I Need an LLC for My Online Business?

If you plan to start an online business or already own one, you should consider forming an LLC.

You do not need to have a formal business entity to start and run an online business.

Still, forming an LLC provides you with some significant benefits, which we will discuss more in detail below.

Also, forming an LLC for your online business creates credibility and consumer trust, which can benefit your sales.

The Advantages of an LLC Status

Many single-owner e-commerce start-ups choose to register as an LLC instead of operating under a sole proprietorship.

Similarly, several multi-owner online companies with the option to choose partnership status prefer to choose an LLC status instead.

Here are some of the benefits of an LLC that also holds true for several brick-and-mortar comapnies.

• Tax Advantages

Corporations tend to be taxed entities, but LLCs have their losses and profits passed through the business to all its members.

That means every member will pay their taxes on their share of the profits on their personal tax returns.

• Limited Liability

Like a corporation, every member’s personal assets get exempted from any liability for the decisions made for the business, for the most part.

This significantly reduces the risk to the business members if the business is sued or in debt.

• Fewer Fees and Paperwork

Corporations are known for the stacks of paperwork they have to file.

As an LLC, you end up with a fraction of the paperwork, and even the cost to register is lesser compared to registering a corporation.

• More Flexibility

As an LLC, the members are free to split the profits they make in almost any way they want to, typically based on the work contribution and capital.

• More Credibility

As mentioned earlier, when you are a registered business with a state and have the LLC suffix to your business name, it will often make potential customers feel safer when they are buying your products.

• Your Own Company Name

A great thing about being registered as an LLC is that you own rights to the business name, and nobody else can use it.

The Disadvantages of an LLC Status

However, there are a few disadvantages too of being an LLC, and these include:

• Frequent Dissolutions

State laws often dictate that if any of the members choose to withdraw from the agreement, they can dissolve the LLC.

It’s possible to re-register as a new LLC or to put provisions into the original contract that prevents dissolution.

However, all LLC closures need to be registered with the state.

Likewise, all the assets need to be disbursed among its members.

• Higher Personal Taxes

While there aren’t any business taxes if the company is registered as an LLC, it can result in higher personal taxes if it becomes extremely profitable.

• Start-Up Costs

Even though an LLC is cheaper to start than a corporation, they have fees that can make them costlier to initiate than sole proprietorships or partnerships.

How To Form an LLC?

If you are convinced that forming an LLC for your online business is the way to go, you must understand the steps to form an LLC.

States may have minor differences in the process of forming an LLC, but there are some basic steps, which are as follows:

1. Choose a Name for Your Business

When you register your business as an LLC, you cannot have the same business name as some other LLC in the state.

You should also avoid any restricted words and end the name with “Limited Company” or “LLC”.

2. File “Articles of Organization”

Filing “Articles of Organization” basically refers to filling and filing a document that contains all the basic information of your company like the name of the company, location, and if applicable, other members’ names.

3. Establish an “Operating Agreement”

This is an agreement outlining the business structure and finances. While this is something that’s not mandatory, it’s highly recommended.

4. Obtain Licenses

Once you have registered as an LLC, it will need all the permits and licenses that apply to your business type and the locality or state.

5. Make an Announcement

In a couple of states, it is mandatory to make a formal announcement of your new LLC’s existence in your local newspaper.

The Need To Be an LLC

While there isn’t any legal requirement for you to form your online business into an LLC, there are some essential questions you should ask yourself.

• Do you want to be at risk if you are ever sued?
• Do you want all of your personal assets taken away from you?
• Do you want to be spending a lot of money and time building a business that’s always going to be dependent on you?

It’s clear with these questions the answer to the most important question, “Do I need an LLC for my online business?”, is yes because it will just be more beneficial to you in the long run.

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Every entrepreneur dreams of establishing a brand and making it big in the market.

While this has been proven possible by many venturers, there are still those who have inevitably failed on their first try. 

The concept of founding a business is relatively easy to understand, but no sure-fire strategy can guarantee its success.

As to how all start-ups begin their ventures, creating a business plan remains on top of the list.

The phase after creating one is where the make-or-break moment starts.

The question of what must an entrepreneur do after creating a business plan boggles the minds of many aspiring entrepreneurs.

This is why we have outlined a couple of promising steps that have been attested useful by successful business owners themselves.

What Must an Entrepreneur Do After Creating a Business Plan?

Should you happen to be at the crossroads and deciding whether to dive into the thought of creating your own enterprise, this article is for you.

Learn concepts and ideas that can jumpstart your way to a successful venture.

Start Researching

For an entrepreneur, learning does not end after creating a business plan.

It is vital that you dig deeper into the industry or niche you will be in to make sure you are well-equipped to take on the competitors in the field.

If there is one thing you should keep in mind, it is that what you think is a brilliant business idea or concept may already be in the market or offered by the competition.

Sometimes, it is harder to adjust and think of better promotions when you learn about it in moments when you least expect it.

Knowing what you are competing against, what they have to offer, and what makes them the best players in the field can help you strategize better.

Research gives you time to equip yourself with what is needed before setting up shop and introducing yourself to the market.

Learn from the Experts

Studying and learning about the best players in the field can help, but having a mentor opens new doors of opportunities.

It is necessary for you to find an advisor who knows what it is like to be in the game.

Seek help, advice, and consult people who have been in the industry for a long time. 

This lets you meet people who can give you valuable advice on what works and what does not.

They can also help you get into the right communities and events that may help you increase your brand’s presence.

If finding one is a struggle, you can always opt to read materials that the experts write.

Then, go for those that give you information on the tools and steps you can use to grow your business.

Finance and Accounting Details

It is imperative that you create a finance management system before starting your venture.

This involves creating separate accounts for you to track losses and profits along the way easily. 

It is also recommended that you search for a banking system or platform that offers the best deal for multiple transactions.

Finally, create a written sheet record where you can easily track and manage all your financial details for all-expense allocations and profit accounting.

Create a Team of Professionals

A good entrepreneur knows that it is healthy and beneficial to work with professionals.

Therefore, when looking for team players to work with you to attain your goal, make sure to go for those who have the skills, knowledge, and experience needed for the job. 

It helps to hire people who have the talent and expertise in the areas where you lack.

In addition, as you cannot micromanage all the tasks and members in your team, you want to have people who can work independently and efficiently even under minimal supervision.

Another area to consider would be the need for someone who knows the ins and outs of a business’s legal side.

Finally, you will need someone proactive and capable of dealing with legal concerns should you encounter some along the way.

An accountant to assist you in auditing and caring for your finances is also essential.

Handling taxes can be overwhelming, mainly if you are operating in a new area or if you plan to expand over time.

Work on Your Branding

No matter how good, a product may not make it to the hands of your clients without proper branding.

As you have already established a good business plan, you have to put those in action, and an excellent way to start it would be to have people talking about your product or service.

Ensure that your products relay a story that can inspire people or make people feel that they can relate to it.

Create a brand image that will make you stand out among competitors and give an experience worth remembering to your customers.

Marketing Tools and Strategies

What must an entrepreneur do after creating a business plan?

Initially, you have to find the right strategies and tools to make a good marketing campaign.

People do not know how good your product or service is yet, so drawing attention to it can open that door for you. 

Whether you go for television, social media, or print media ads, make sure to have relevant content and abide by the platform’s rules.

If you plan to invest in creating a solid online presence, you can opt to learn about SEO to help generate leads and increase traffic.

Suppose you are clueless as to which marketing strategy to use; consider your target market.

Then, prioritize implementing the platforms that will be appealing to them.

Constant evaluation of its efficacy is also essential to avoid investing in ineffective marketing plans.

Diversity also counts, so when starting, make sure to distribute your funds among different tools and platforms. 

Brace Yourself

Venturing into business is not a walk in the park.

When you step into the arena, you will find yourself competing against the hustlers and vultures in the field.

There is no doubt that there will be setbacks and unfortunate events as you go, but the best you can do is to prepare and equip yourself with knowledge and skills. 

You have to prepare for the worst and practice the art of picking yourself up, taking in criticisms positively, and applying changes needed to improve and recover.

It pays to have alternatives in case the original scheme does not work out. 

Network

While your products, services, and marketing strategies matter, it is vital that you remember that relationships do too.

Business owners, despite any form of competition, value trust.

Whether it be suppliers, private investors, banks, capitalists, or investors, treat them with respect and nurture the relationships as you go with your venture.

This also applies to customers; hence, entrepreneurs invest in repeat customers as it is easier than securing new ones.

Conclusion

Venturing into a business is best done with ample preparation and planning.

The first steps you take into building your brand are essential, but how you survive and maintain a smooth execution of your business plan dramatically impacts your success. 

There is no fixed or guaranteed road map to success, but there are ways you can get a bit of leverage.

By following and considering the areas mentioned earlier, you increase the chances of your business becoming successful. 

An entrepreneur never stops learning and does not back down in every setback and frustrating encounter.

With the willingness to learn from people and experiences, an entrepreneur will eventually realize that the key to success is the desire for growth and service to people through their brand.

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Many people get confused with the words entrepreneur and intrapreneur, as these are commonly used interchangeably.

There are many traits and similarities between the two, but they also have differences that make them unique in their own ways.

If you have great enthusiasm for business and operations, you may be wondering which term is suitable for you.

Different factors play a part in distinguishing both roles, and knowing about them will help you understand the concept clearly.

To help you get a deeper grasp of the two, we have outlined a few must-knows on the difference between entrepreneur and intrapreneur.

This way, you can easily distinguish the things that mark each role. 

Difference Between Entrepreneur and Intrapreneur 

When you understand the concept of entrepreneurship and intrapreneurship on a more profound and comprehensive level, you become apt to play the role more effectively.

Today, we’ll look at the differences that set them apart and make them uniquely perfect for growing a business.

What Is an Entrepreneur?

An entrepreneur is someone who dives full-on into creating a business through dynamic processes.

As such, he is accountable for all the risks and losses that the business may encounter along the way.

This person operates the business while aiming to get rewards and returns from selling products or services.

When you look at the business as a whole, the entrepreneur is responsible for driving and creating visions for it.

Therefore, all business initiatives, actions, and strategies are decided by him.

What Is an Intrapreneur?

When we speak of an intrapreneur, we are talking about someone who is a part of an organization.

Basically, he is paid to execute strategies and activities within the company’s limit.

The role can fall from the position of an intern up to the person next to the owner of the company.

An intrapreneur has the authority to create ideas and innovations on how services and products are handled from creation to disposal.

However, in terms of accountability and losses, an intrapreneur is not the one to take them because they directly hit the business or the owner.

Entrepreneur vs Intrapreneur: What Sets Them Apart?

If there is one thing we can relate to about the two, it is that they are geared towards the business’s success as a whole.

The difference between entrepreneur and intrapreneur lies in the many factors and limitations that they are bound in.

To help you understand better, we will be tackling them one by one.

Investment Side

Since the entrepreneur is the owner of the company, it is his responsibility to raise funds so that the business can operate continuously.

This means taking care of capital, operational, and other expenses necessary to keep the business running or financing new business ventures.

On the other hand, an intrapreneur has no responsibility in raising capital or putting in investment for the business to operate or for products to be made.

The intrapreneur will not shoulder any expense or any monetary resource needed for the business’s endeavors.

Enterprise and Vision

In terms of enterprise, the entrepreneur creates and establishes the business organization.

On the other hand, the intrapreneur enters the business to become a part of it.

For instance, he could be an employee or an intern responsible for driving product and service innovation.

When an entrepreneur sets a vision, he makes sure that he prioritizes his work, services, and products with good social and economic value.

In contrast, to that of an intrapreneur, the concern would be to keep the business enterprise thriving and sustained in the marketplace.

Risks and Liability

The entrepreneur is always the person to take in all the risks and liabilities of the business.

With 100 percent investment, any loss, expense, or accountability is managed by the entrepreneur alone.

In comparison, an intrapreneur is only liable for the areas covered by his role.

Still, these rarely come in monetary form or have anything to do with the business’s standing in the market.

Moreover, these are usually minor ones, as the significant risks concerning the business as a whole are beyond his pay grade.

Dependency and Freedom

An entrepreneur has complete autonomy and independence.

There is no superior or boss to answer to because he is free to do whatever he wants for his business.

However, his actions are dependent on what the business enterprise needs.

On the flip side, the intrapreneur is entirely dependent on the entrepreneur.

He has the authority to innovate and direct efforts to improve processes concerning products and services.

However, his directives and actions will come from the entrepreneur and fall under the limitations of the company’s policies.

Behavior, Traits, and Creativity

Both roles are similar in terms of professionalism, creativity, discipline, and innovativeness.

As a result, each will want to read materials that can help improve their craft and find tools and steps they need to take in their money-making ventures.

An entrepreneur will always think outside the box and demonstrate aggressiveness, flexibility, speed, and adaptability.

There are no limits to an entrepreneur’s creativity, as opposed to an intrapreneur, which is limited to the confines of the organization.

The intrapreneur will be concerned more with leadership, professionalism, and entrepreneurship. 

Time and Resources

The entrepreneur’s duties have no limitations, as networking and building the business can be done anytime.

The intrapreneur will be operating on a timetable that the company has set, usually in shifts.

In terms of resources, the entrepreneur has to fund or invest in having resources to utilize.

These resources then become the intrapreneur’s primary source for executing tasks and actions during the operations.

Motivation 

You may be wondering about the difference in how both roles define success.

An entrepreneur will be driven and motivated by the thought of being in control and having the ability to take risks and make decisions.

He is also inspired by the possibility of hitting milestones and gaining achievements of the business.

Meanwhile, the intrapreneur will be driven by the acknowledgment of the entrepreneur for his work and contributions that lead to the enterprise’s success.

Incentives and rewards such as promotions, bonuses, voice, and authority can serve as the driving and motivating force for this role.

Approach to Problems

Believe it or not, entrepreneurs see problems differently.

They see problems as a starting point in creating the concept of new products and services.

It is a fact that the things we consider as iconic products and services are those that solve an immediate need or a problem. 

The presence of a problem is different for an intrapreneur, as this is often a signal of a threat to the enterprise.

Therefore, the intrapreneur’s main action would be to straighten out kinks and resolve the problem to have no collateral damage in the works.

Decision-Making

An entrepreneur will hold complete control of all the decisions to be taken.

Thus, there will be flexibility and no limitations as to what an entrepreneur can decide to do. 

As for the intrapreneur, all the decisions will be entirely reliant on the entrepreneur’s decision.

He can make decisions concerning product innovations and operations only if the entrepreneur permits it.

Conclusion

Being an entrepreneur or an intrapreneur requires dedication, professionalism, creativity, and other core values.

While both roles have significant differences involving various factors, both the entrepreneur and intrapreneur play an essential role in the business. 

If you are aspiring to assume one of these roles, now is an excellent time to decide which role is the more suitable to you.

It is always good to start investing early in the knowledge, tools, and skills essential to be successful in it.

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Everybody has a realization, an awakening within that lets them realize what they want to do with their lives.

For aspiring entrepreneurs, it may be a brilliant idea or a passion for entrepreneurship.

Whatever the reason is, it is only proper to make sure you are equipped with the right set of knowledge and skills.

If you dream of joining the league of the best-known tycoons in the world, you have to know the best majors for entrepreneurs.

While it is customary to assume that business is the sole major to take, you will be surprised that there are others that can help get you there.

Many business venturers take on different majors to equip them with the skill sets they need for their chosen industry.

As business involves communication, relationships, finance, economy, public relations, and more, you will want to set a path that will put you in a good position when you get there. 

Best Majors for Entrepreneurs

A business degree can take an entrepreneur to high places.

Still, those who went ahead and took other routes have also proven to be successful in the field.

Of course, new skill sets can take you places too, but if you want to know about majors you can take to prepare for this route, read on. 

Marketing Degree

As we know, a brand needs a solid marketing strategy to be known and create a presence.

With a marketing degree, you will learn the fundamentals of establishing business growth through innovative marketing. 

In this major, you will be taught how to create a compelling and specially designed marketing campaign that aims directly at your target market.

This means knowing which campaigns and promotions to use depending on the factors that affect the audience.

This major also gives you an idea of increasing market share and adequately allocating funds into different campaigns.

This also places you in a position where you can study and analyze your competitor’s marketing program to set yours apart. 

The skill of creating and maintaining a consistent, clear, and relatable brand image and voice can help you dominate in your chosen field.

A marketing degree also teaches how to analyze and work on the audience’s feedback, thereby allowing you to turn weakness, criticisms, and negative responses into strength, acceptance, and patronization. 

Business Degree

Among the best majors for entrepreneurs, the business degree remains on top of the list as it establishes huge leverage among others.

This is the path that every aspiring entrepreneur takes as it teaches an individual how to advance in any situation, most specifically, in a business setting.

From setting short-term to long-term goals, creating a business plan to reach them, and evaluating its results, a business person will know the ins and outs of each phase.

This degree tackles the stock market, funding options, economics, expansion, business law, human researches, accounting, and more. 

Those who are fond of reading business books from experts see this degree as a solid foundation for understanding entrepreneurship.

This book can be a good start for anyone who wants to create a startup.

By allocating a few minutes in a day, you learn about the steps and tools you need to increase your chances of success in any business.

Economics Degree

Knowing what consumers find valuable is essential to creating a solid product or service.

Through an economics degree, you will learn how the economy works and how it applies to consumers and their behaviors.

You will have a deeper and better grasp of how markets work and how they can use concepts on pricing power, macroeconomics, microeconomics, consumer surplus, and others to increase their success in a particular market.

This is essential to creating a stronger business model that can survive in varying economic status and timelines.

Communications Degree

A good person in business will know how to communicate with diverse groups and stakeholders.

However, while some are naturally born communicators, not all entrepreneurs are born with it.

This is why taking a communications degree gives you an edge in the field.

Building relationships play an essential part in business, and a communications degree will teach you the essentials of getting you the network you need along the way.

It entails learning the basics of effective communication along with social sciences.

With this information, you can effectively engage people and relay your message as necessary.

This applies to hiring, customer service, marketing, and even when sourcing domestically or internationally.

Having a good grasp of all these can help you maintain strong and long-term relationships with suppliers, customers, investors, and your team.

Psychology Degree

Similar to a communications degree, a psychology major can help you understand and relate to people better.

Since business involves sales, marketing strategies, and customer service, this degree better interprets how your customers feel.

This degree will teach you the different personalities and behaviors of humans and why those come to be.

You also get to understand the phases of human development from when a person is born to his last breath and its relation to their motives, needs, and wants. 

The same applies to when you are to manage your business.

You get to distinguish whether a person is a good fit for the role or the team.

This helps you become better at leading people into attaining your vision in the business.

It helps in decision-making as you can understand others and get a clearer picture of who they are as a person.

It boosts leverage in formulating marketing strategies and enables you to build a more substantial brand presence and better culture in the company. 

Taking this degree can also help you to understand yourself better.

It helps you acknowledge your strengths, weaknesses, and behaviors that may hinder you from making decisions for your business.

It also prepares you for complex situations.

Finance Degree

If you want to be fully involved with your finances, this is a degree that you should take.

Those who take accounting and finance degrees are given in-depth training on monitoring the cash flow, analyzing finances, reading income statements, balance sheets, and more. 

An entrepreneur should know where his investment is going and where his profits are coming from.

Whether it be for payroll, capital, marketing, or any expense, a well-analyzed report of allocations and profit is essential to evaluate the business’s financial health.

Apart from this, you also get a good understanding of lending, investing, and issues that may pose a problem to your company’s finances.

With a foundation such as a finance degree, you will solve cash flow problems that may arise as you start your business venture.

Hiring an accountant to do the finance and accounting tasks and responsibilities deem essential for any business.

But knowing and understanding each component’s factor and relationship to each other and the bigger picture opens doors to new ideas and strategies that you can use.

Computer Science Degree

In this era of technological advancement, it pays to be well-versed in computer science.

In addition, since businesses are now utilizing different shopping platforms and finding various avenues to connect with their customers, you can better understand how the market works with this background. 

This also gives you an idea of how your competitors use technology to get ahead through web design, software creation, and more.

Startups are aggressively using technology to get ahead, and knowing how to adapt to it is essential. 

Another concern for many business owners is security.

Since online platforms are vulnerable to breach and hacking, having this degree gives you the ability to protect yourself through proper programming and security programs. 

Entrepreneurship Degree

If you envision yourself creating and running a business in the future, getting an entrepreneurship degree can help.

This major focuses on teaching you the basic knowledge and skills you need to put up a company that falls in varying niches and industries.

They target the highlights of being an entrepreneur, which are values, ethics, communications, and public relations.

In this major’s curriculum, you will also be able to learn about marketing, branding, market research, business operation management, performance evaluation, funding, finances, business laws, and business plan creation.

Getting this degree involves a lot of research and practice to hone your skill in creating new ideas, making decisions, executing action plans, forecasting, and evaluating.

By exposing yourself to these, you improve your capability to address real-life crises, challenges, and setbacks.

Conclusion

As you learn about business, you discover that there are many disciplines involved in nurturing it.

For an aspiring entrepreneur, the best time to start is now.

If you are contemplating which major to take before starting your business venture, it is wise to consider various options.

Listed above are just some examples of the many majors that one can take to prepare them for entrepreneurship.

Always remember that the suitability of a major depends on the kind of business you want to pursue in the future.

Set your mind to it, and then choose the one you can use and maximize your desired future venture.

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Being an entrepreneur is considered by many as the gateway to success.

Sure, getting a respectable job with a lucrative salary is cool and all, but the prospect of being your own boss while also getting top dollar is far more appealing.

However, the steps to becoming an entrepreneur are widely different from someone who is trying to get a degree.

As such, questions such as “What does it take to be an entrepreneur?” or “Should I be an entrepreneur?” will surely pop up at some point.

While the potential of being a business owner is glittery, make sure to keep your feet on the ground.

As per a business magazine, “nine out of ten startups will not succeed.”

That 10 percent success rate is demotivating. Be that as it may, you shouldn’t give up your hopes and dreams based on that data.

Before we dive into the entrepreneurship requirements, let’s first address why people choose to be business owners rather than workers.

Why People Choose Entrepreneurship

It’s no secret that becoming a business owner is a massive gamble because there’s no assurance that it will be successful.

Besides being financially ready, you also have to be prepared physically and mentally because you will most likely dedicate most of your time to it.

As implied above, you’ll be more likely to fail than to succeed.

Still, for some, the volatile nature of running a business makes it more worthwhile.

Below are a few notable reasons why being an entrepreneur is more appealing than being an employee.

Authority

Most of us fantasize about being the authority in any organization.

Respect is automatically given to you by your workers, at the very least.

Almost everything is run through you without requiring you to do all the heavy stuff.

In short, you are in control of the whole business operation.

So, if you’re someone who thinks you can do a better job than your boss, being an entrepreneur is the way to go.

Diverse Task

Once you become an employee, you are obligated to follow the rules and regulations of your company.

From schedule to where you are designated, most likely, you wouldn’t get much choice regarding anything related to your role.

If you are an entrepreneur, you have the freedom to choose what task you do.

For example, if you’re running a diner, you have the option of helping the register today and providing kitchen assistance the next day.

You also have the freedom to choose what time and day you will be at your business location.

It is optimal to monitor it as much as you can, but you can also delegate some monitoring tasks to your staff if you have to be somewhere else.

Overall, freedom from fixed schedules and cookie-cutter tasks is possible when you are an entrepreneur.

Lack of Choice

The lack of choice stems from a couple of factors, such as:

• having underwhelming educational and employment background,
• no market for your skills and qualifications,
• and cannot fulfill employee obligations due to several reasons.

While the lack of choice appears to be disheartening, you must keep in mind that being an employee isn’t the life you imagine.

Potential for Growth

If you perform well in your job, there is a chance that you will get a raise and promotion.

Still, it would all depend on the discretion of your superior.

Owning a profitable business, on the other hand, is more substantial.

The opportunities for growth and revenue are essentially limitless, and you will get the most out of it.

If you got what it takes to be an entrepreneur, this part is probably your greatest motivation.

As we have laid out the advantages of being a business owner, it also comes with different challenges.

Your responsibility and accountability are the highest, which makes sense because you control how the business operates.

In the same manner that your startup’s success is credited to you, its failure will be on you.

Steps To Becoming an Entrepreneur: Definitions and Details

If you’re still up for it, let’s check out some essential entrepreneurship requirements if you want your business to be included in that 10 percent.

Below are the factors that tackle what it takes to be an entrepreneur and its significance.

1. Develop Your Character

Before you take your chance at being an entrepreneur, check out if you have the traits for it.

Some may argue that your character is the most significant factor between success and failure.

Fortunately, you can develop this set of traits as long as you work hard for it.

If you want to know what does it take to be an entrepreneur, a successful one, get a hold of these traits.

• Initiative 

You must make sure that you always take the initiative when it comes to your business.

Some new business owners take delight in the fact that they don’t have a schedule, so they tend to slack off when they feel it.

This kind of attitude can only lead to failure. In more ways than one, your business reflects your character.

Make it a habit not to rely on your staff about something you could do yourself, get it done without their help.

That kind of approach can also influence your people into having the same mindset.

• Social Skills

No one wants to work with a grumpy or socially awkward person, regardless of the position.

Proper communication is one of the keys to a successful business, and you being cordial with your staff comes a long way.

It’s also an excellent way to build a great working environment.

Excellent social skills will lead to better interaction, work relationships, and better products or services.

• Passion and Creativity

You can’t run a business if you have a nonchalant attitude towards it.

Once you think about your business as a chore instead of treating it as something you love, you might as well forget about it.

Chances are when you have a passive approach when it comes to your business, you will easily give it up once you experience setbacks and problems.

As such, learn to be passionate about what you do.

You will tend to appreciate it more once it becomes profitable and to protect it when problems arise.

Developing your creativity is also important.

This trait could help you create new ideas for your business, finding ingenious solutions to address and solve problems.

• Diligence

Never settle on doing the bare minimum just to convince yourself that you have done what you are supposed to do.

Remember, more often than not, the one who gives it their best gets the best results.

That is easy to realize if you’re hardworking. If you have the drive and dedication that most of your employees don’t, then you got this covered.

• Patience

Any great business success story has its own share of setbacks.

Most likely, before you get into day one of your operation, chances are you are going to experience a variety of issues.

The famous saying “patience is a virtue” is more than true when it comes to entrepreneurship.

You have to exercise a lot of patience with equipment, employees, and customers.

2. Find Your Niche

Many people dreamed of breaking the shackles of employment but choose to give it up because they don’t know which type of business they want.

It is recommended that if you’re starting a business, be certain that you have ample experience in that field or related to it.

Managing a startup with prior background or experience is superior to working with a startup with just second-hand knowledge.

You can also opt to get an education if you feel that there’s a need for it.

Learning by experience and via school should only make you more ready.

3. Prepare Your Capital

Capital is arguably the most-used factor by people who didn’t pursue becoming an entrepreneur.

Finances or lack thereof is a major deterrent for many, and if they did continue with their startup, lack of funds is usually the reason for setbacks.

Your business expenses revolve around equipment, payroll, marketing, utilities, legal fees, and many other related payments.

4. Market Research 

One of the most important steps to becoming an entrepreneur is market research.

You may feel good about the chances of success of your business, but it is still crucial to do detailed research about your target demographic, competitors, and the demand for your product or service.

Once you get a detailed analysis of these factors, you will most likely get a good business plan out of it.

5. Build Your Network

Networking is one of the most crucial entrepreneurship requirements.

It will allow you to meet people who could be an asset to your business.

Also, via networking, you could find investors and advisers who could help launch your startup.

6. Establish Your Empire Steadily

Contrary to popular belief, fast growth is not ideal if you want your business to exist for a long time.

Rapid growth could easily be a sign that your business is a fad, and chances are it is only profitable for a short period.

Building your business slowly but surely allows you to be familiar with the ins and outs of your business, the problems, and its solutions.

You can also get a better picture of your company’s growth, leading to better business plans while committing fewer mistakes.

Conclusion

Being an entrepreneur is not a sure-fire way to become successful, but if you have the proper knowledge and resources, by all means, go for it.

Always read anything that relates to your niche, and don’t hesitate to seek advice.

You can never be too prepared to become an entrepreneur.

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