Forming a business and accepting credit cards

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DeviantNinja

DeviantNinja

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Mar 3, 2008
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Hello all,
I have created a niche directory service and am ready to launch. The business model I followed relies on vendors paying for advertising spaces and being listed higher in the directory etc. Im very new to all of this and would appreciate some advice.

What is the best way to go about incorporating and what type of business should I form? LLC? S-Corp?

What is the best way to accept credit cards as payment? I understand I need a merchant account but still fuzzy about the process..

Again...any help at all would be greatly appreciated.. Thank you!
 


thanks for the quick responses... does a business LLC/S-Corp still need to be setup? what about taxes etc?
 
DeviantNinja said:
thanks for the quick responses... does a business LLC/S-Corp still need to be setup? what about taxes etc?
Click to expand...

Nope, typically you only need to file a dba (doing business as) in your local county. It pretty much gives you the legal right to do business under a fictitious name (a name other than your legally given personal name). This helps when you need to open bank accounts and accept mail under the business name.

An LLC/Corporation is just another legal form of entity which is more advanced and a little more complicated. You have to file taxes under the entity (not including these items on your personal tax filing). I have two S-Corps and sometimes it gets to be a pain in the rear if you need to keep on top of multiple filing types and filing deadline dates, etc.

Keep it simple and pay the 20 bucks to file a DBA - much easier until you make a lot more money in which case an LLC/Corp might suffice to protect your assets better, etc.
 
I'll second what kelix06 said about CDG - I used CDG for my merchant account (which I closed when I sold my business a few years ago), and they were great to work with (not to mention, they had great rates).

The deal that they're running now is better than I had a few years ago - I used to pay the $10/mo merchant fee + a $15/mo gateway fee for an odd gateway with limited plugin support - the gateway fee is now waived & their gateway has Authorize.net emulation which means it works with virtually all shopping cart or payment scripts/software.
 
I did this a few years ago, I had a DBA and it was cheaper to process credit cards through my bank than it was to do it through paypal. Might want to go to your bank and as for a brochure on their merchant services.
 
I actually even though he is an over cocky poo poo head :P

I would at least start on PP.

As far as what to form, LLC always seems the way to go. It makes it much easier to take your money from it. You just do draws. Accountants love it
 
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