Registering a legal entity is a key step in separating personal and business liabilities. Without it, the owner is considered a sole proprietor and could be held personally liable for debts or lawsuits. Forming an entity such as an LLC can limit liability and simplify accounting by keeping finances and expenses separate. LLCs are popular in the U.S. and can typically be filed through a state’s Secretary of State website for a small fee. More in-depth setup details may vary by state or country. For extended learning, see LinkedIn Learning’s Small Business Legal Entity course.
Most products are taxable, requiring a sales tax license to collect and remit taxes. Sales tax requirements vary by state, and tools like TaxJar can help navigate regulations. Businesses must monitor their nexus—physical or economic presence—within states to determine tax obligations. Nexus can result from having an office, warehouse, or employee in a state. Economic nexus may apply when revenue exceeds $100,000 or 1,000 transactions annually. Physical storefronts may require zoning permits, signage approval, and occupancy compliance. Regulatory complexity may be eased using dedicated sales tax software.
Branding provides consumers with clarity and product differentiation. Elements of a brand include a name, logo, tagline, and behavior. A well-known example is Starbucks, which signifies a consistent product experience. Entrepreneurs should decide between a single product brand and a general purpose brand. A narrow focus (e.g., Campfire Tongs) offers clarity but limits expansion. Broader brands (e.g., Laid Back Games) allow easier scaling and product diversity. Branding should be defined before launching a site. For deeper branding insights, refer to the Branding Foundations course.
