Starting An Internet Company
Starting an internet company sounds difficult, but it may be a cheap and easy process if you know what to do.
You do not need a million dollars to start your own internet company. It is a pretty simple process, and one that may be accomplished even without hiring a lawyer.
First, you need a basic idea of what you want your internet company to provide. It can be anything you want it to be with one caveat. You want people to come to your site so it definitely needs to be interesting. Some things to consider are what age group you want to target, what kind of services (if any) you want to provide and whether you want advertising on your site or not.
Then, once you have an idea, you can start coming up with a name for you company. You should choose a few different names because some of your choices may already be registered.
Once you have a name, you need to register a domain name on the world wide web so that no one else can use that name. The domain name can be the same name as the company or a different one.
The fastest, easiest and cheapest way to accomplish domain name registration is by going to a domain name registering website (there are several out there, you just have to enter a search on the web). To register a domain name for one year costs $40 - two years costs $60. These domain name websites allow you to search to see whether your domain name has already been registered or not. If it has been registered, you need to choose another name. If not, the domain name website will register the name for you and even provide a temporary website that says "(Your Domain Name) Coming Soon".
Now you are ready to start creating your internet company. You can start your internet company on the website. You need computer programming knowledge for this, so if you are computer illiterate, you probably want to find a partner who knows all about computers and can help you set up your internet company on your website.
Setting up an internet company takes a lot of time and creativity. There may also be equipment and advertising costs if you want people to know about your company. Of course, all of this will require some money.
Venture capital firms exist to provide internet startup companies with the money they need. There are lots of venture capital firms out there, you can find them on the web. Once you select a firm, you have to present your internet company to the firm, show them your website and tell them how much money you think you will need. Most venture capital firms provide companies with initial capital of a million dollars which you can use to hire more computer people to help you expand the website.
But the venture capital money does not come free. If the venture capital firm likes your idea, then they will ask for half ownership of your company. This means they will get half of whatever profit your internet company makes and they may also be able to control the development of your internet company.
An alternative way to obtain venture capital money without going to a venture capital firm is to ask your friends and family for money. You probably will not be able to obtain a million dollars (unless you are a member of Bill Gates' family), but hopefully, you will be able to obtain enough money to cover your operating costs. In return for their money, you can offer each family member or friend a small part of the profits from your internet company.
Your ability to obtain venture capital funds depends on how much faith people have in the profitability of your idea. If your idea is to sell eggs over the internet, you might not get a lot of money. But, if your idea is a really good one, you should get a fair amount of support.
Of course, if you do not need any money, by all means, set up your internet company and keep all the profits for yourself.
The final step is to incorporate your company. You must incorporate before you attempt to make any profits. Otherwise, you will be breaking the law. Most internet startup companies incorporate in California because California has good tax laws for small internet startup companies. You can incorporate in California by going to California's Secretary of State website and requesting an incorporation form. The filing fee for the incorporation form costs a hefty $800.
In summary, starting an internet company consists of five simple steps:
1) Form an Idea
2) Register a Domain Name
3) Form the website
4) Obtain capital (if needed)