Week 6 blog

Week 6 Blog

This week’s focus on legal structure, licenses, and taxes gave me a much clearer understanding of how important these decisions are when starting an online business. Choosing the right legal structure, such as a sole proprietorship, LLC, or corporation, affects not only how taxes are paid but also how much personal liability an owner has. I learned that while a sole proprietorship is the simplest and cheapest to start, it offers no personal protection from business debts. On the other hand, forming an LLC provides more security and flexibility but comes with additional paperwork and fees.

Another key takeaway was how licensing and tax registration vary depending on the type of business and where it operates. Even online businesses may need local permits or sales tax registration if they sell to customers in different states. Overall, this week helped me see that taking the time to set up the right legal foundation early on can save major problems later. A solid structure, along with proper licensing and tax compliance, creates credibility and long-term stability for any successful online business.