You don't necessarily need to be incorporated. There are many different types of business registration. A sole proprietorship isn't necessarily bad if you have the means to protect yourself. Sometimes it is a better idea to become an limited liability company or an s-corp.

So you guys are saying skip the incorporation and go for liability insurance?

Even if you just have a commercial web site?

Also, to the 10th grader, I would imagine you would have to have a parent or guardian enter contracts for you. Or, you could get emancipated, like Ashley Qualls, who had her own web business since 14.

Yes I'm legally registered. The thought that I could be found out down the line and be liable for taxes or other costs just wouldn't let me do anything else but be legal and all above board.

Business must be legally registered.

Not yet but I plan to get a business license by the end of the year once our client base gets up.

Do you not need a business license in Ontario, Canada to operate a web hosting business, Arber?

In the U.S. You can be a sole proprieter no file for a business license, but file the amount you make on your taxes under your social security number.

I can't open a business checking account here without a Tax ID and registered business name.

We are a registered business in South Korea.

Korean clients do not want to deal with a company that does not have a business registration certificate.

Most companies in Korea need you to issue a TAX Invoice for them.

If you say you don't issue a tax invoice because you do not have a registered business they would not buy from you.

We have been registered since day one, well tech. day one was a mind storm for about a week coming up with our domain name but after that you know.

Honestly, I would not buy from a place that was not registered and I know many others feel the same. Those who do not, well of course its a personal choice, but not one I would like my potential clients to make and go elsewhere.