We live in NY state. We buy items (by lot) online or at auctions and sell them online by piece. Is going good and we want to open a business...

Question

We live in NY state. We buy items (by lot) online or at auctions and sell them online by piece. Is going good and we want to open a business, but we have some questions.

1. Do we need to incorporate our business ( what type?) or just apply for a reseller license?

(note: we what to sell only online on ebay and make a website, no a local store. Also in a future we will need to hire some help. )

Thank you!

Answer

These are big questions and require a proper discussion to evaluate. So other than some rather broad generalities which will not be very helpful this forum is not a place to get this kind of specific advice.

You should take the time to call around to a few business lawyers and get a sense for what they suggest in your case. If you would like to discuss further over a free phone consult, feel free to contact me anytime that is convenient.

Our firm is now referred by the American Bar Association (see under the New York section):

http://www.americanbar.org/groups/delivery_legal_services/resources/programs_to_help_those_with_moderate_income.html

Kind regards,

Frank

www.LanternLegal.com

866-871-8655

[email protected]/* */

DISCLAIMER: this is not intended to be specific legal advice and should not be relied upon as such. No attorney-client relationship is formed on the basis of this posting.

Answer

This is not a difficult or complicated question at all.

It is always best to incorporate to protect your personal assets from any potential financial liability. It is a small price to pay for peace of mind, especially if, as you say, the business is growing.

As far as LLC vs. Corporation, both will provide the proper protection. An LLC typically costs a bit more up front due to the required legal publishing, but will generally pay off in the long run with reduced operating requirements such as those required for corporations (i.e. required shareholders meetings, creating bylaws, keeping minutes, etc.). In zip code 14609, the legal publishing for the LLC should not cost much at all.

See? Quick and easy answers... no need to make things more difficult than they need to be.

DISCLAIMER: this is not intended to be specific legal advice and should not be relied upon as such. No attorney-client relationship is formed on the basis of this posting.