I often hear reports on the news about scams and cons perpetrated via the Internet. Someone somewhere has been hurt by some untraceable, unscrupulous scum that does not want to put the energy into a legitimate enterprise.
Almost every business has been scared by this negative information. The sad part is the reports are true. However, you can overcome the damage done to you quickly and effectively.
Almost 20 years ago when I started doing traditional business consulting I knew what the first step was to start up a business. And I knew the reasons for it. Besides being the law everywhere, this builds credibility. It makes your business a legal entity. You can also think of it as creating an abstract being. You register with the state you will be doing business in.
How does registering with a state relate to online business. An online business is everywhere. Why should I get the state involved? The answer is credibility. You need credibility. By registering in your state you are demonstrating that you are not one of the con men/women over in Africa or somewhere. You are publicly announcing who you are and what you do.
Getting registered is the first, best, most effective and most important way to overcome the damage done by online scams.
Okay what is registering? It is when a small businesses creates an LLC, S-Corp, or C-Corp. Most companies become LLC’s. LLC means limited liability corporation. Another way is to register as a partnership or sole proprietorship. The LLC is to help protect your personal assets. This can be important if you have a lot of assets.
Okay so you are registered. You are now: Busy Business LLC. What is next. Prominently and proudly state the fact on your website. If possible state it in the site heading as part of the title. Example: Busy Business LLC Vendor Of Delicious Cookies. We are registered in “Our State.”
A large number of brick and mortar companies market products online. Most of them are registered in their home state. However, they don’t state this on their website. It is a good idea for them to state that they are registered.
There are some other advantages to being registered. You can open a business bank account using your company name. You will be able to get paid other ways besides PayPal if you choose. In time you can build a line of credit.