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How to Get a DBA, LLC, Trademark, Sellers Permit & More to Legally Start an Online Business

Published on: December 5 2022 by Travis Marziani

How to Get a DBA, LLC, Trademark, Sellers Permit & More to Legally Start an Online Business

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How to Get a DBA, LLC, Trademark, Sellers Permit & More to Legally Start an Online Business

in this episode of the effective
e-commerce podcast we're going to be
toking about all the legal things you
need to do to open a business this
include should you get an LLC should you
get a DBA escort do you need a trademark
what kind of legal certificates do you
need to be selling in your state and
tok about the bank account and credit
card stuff I have Ariana on the podcast
again and Ariana has her own passion
product business called vino cards you
want to give a quick one or two
sentences summary of vino cards yes is a
wine course and flash card for him
essentially meaning that it's a set of
cards that highlight wine varietals from
around the world so you'll learn about
what to look for and smell and taste
color of the wine and an interesting
fact about it and as well as what it
pairs with so it's perfect for wine
tastings and just a really fun
interactive way to learn about wine so
that's her own passion product and if
you don't know this is a big thing that
I personally like to do I like to teach
people how to create their own passion
product for instance that for me that's
performance nut butter and all the word
passion product means is like a unique
product that you actually believe in
that you want to sell so this isn't just
another private label dropshipping type
of thing it's something unique that you
want to sell and in this episode we're
gonna be detailing Arianna story on how
she created her passion product
specifically this episode was obviously
like I said about the legal aspects so
for everybody listening and watching on
youtube tomorrow is the big day I'm
releasing the passion products formula
beta course and basically what that
means I'm gonna take ten people so you
be and nine other entrepreneurs gonna
sign up and basically I'll teach you how
to create your own passion product like
I did for performance nut butter and
Ariana did for me no cards and well
actually we'll probably in the next
episode tok about how it's been going
for Ariana and vino cards that's spoil
alert it's been going pretty well so
just quickly before we jump into it the
course is going to include obviously the
course itself six at least six group
coaching sessions at least two
one-on-one sessions with me all the
courses I've ever done checklists for
getting started and the moral of the
story is the reason I keep saying at
least two sessions at least six sessions
whatever because I'm going to do every
it takes to make you successful I want
to teach you how to create a passion
product and this is basically so I can
get a testimonial I want you to be
successful so I get a testimonial I'm
capping it up ten people because I'm
gonna be pouring my heart and soul into
all ten of these people to get their
business up to speed all right now that
the commercial is out of the way let's
tok about what it takes to get a
business so first off babe Ariana
let's tok about what you chose in Y and
I'll fill in any of the gaps because
I've done different legal entities
before and there's DBA LLC and S corp
and we chose DBA do you want to tok
about a little bit about that yeah I
mean I guess what you did in like
research overall it seems like LLC is
more it's it's useful if you have like a
food product yeah it seems like and and
I don't and so DBA we just simply opened
a bank account with the business name on
it so it could really just be a separate
entity from me yeah well so an LLC for
everybody listening is the reason she
said it's helpful for a food based
product it's helpful for anything that
you might get sued with because you want
to separate yourself from the business
so if something happens someone gets
sick or they want to sue performance nut
butter they can go after it but they
can't go after my assets
we're with V no cards we did it as a DBA
because the chances of someone being
able to have a real case against V no
cards ensuing Arianna is not that good
plus she doesn't have a lot of assets to
to be on it I mean you know they can
take her student loan debt right even
take your student loan debt yeah exactly
but so that those are the two big ones
and then have we ever toked about S
corp before do you know anything about
Thanks okay so as a just to go back to
the LLC thing in California there's it's
an $800 a year it's I think it's like a
few hundred dollars to sign up plus
eight hundred dollars a year to renew it
we're a DBAs ninety nine dollars with
Legal Zoom so that's the first way it's
gonna save you
probably at least $1,000 yes simply sent
in my information about the business
what it is and then they handled
everything online for me so they did all
the filing and processing I had to wait
granted like a month and a half for this
is with legalism yeah and then yeah and
then we just took care of everything and
then they sent it over to me yeah and if
you're gonna get an LLC or an S corp or
a DBA I just go with Legal Zoom
personally it's yeah it's pretty easy
yes I did for my business
it's an LLC but it's taxed as an S corp
that's another way you can save some
money there's some I'm not gonna get
into all the tax benefits of that but
basically you can pay yourself a like a
bonus at the end of the year if you're
an S corp and yeah there's there's a
whole bunch of things there's also a
c-corp if you're looking to get a bunch
of investors but that's beyond the scope
of of this episode was there anything
else about the DBA or anything that
comes to mind that you wanted to tok
about I mean that was just helpful to
open the bank accounts and once we had
all of the files we went to Citibank
u.s. bank if you sp yeah you guys think
you can use whatever think you want of
course but yeah to work well I mean we
took all the files and then I'm the only
thing I would say is maybe try to get an
EIN beforehand right so take it over to
the bank and that's basically like the
Social Security and yeah yeah it's I
think it's employment identification
number is exactly you said it's a Social
Security number for the business and so
you take that to the bank you don't need
that necessarily we didn't have it when
we opened hers but we had a DBA
paperwork so you need DBA paperwork LLC
paperwork escort paperwork whatever you
take it to the bank and once I about
that process a little bit it's it's so
yeah go in tell them that you want to
start a business account and since you
have all the paperwork they can just
simply open it and it took I mean the
person we toked to toked to while yeah
I took an hour and a half for us but
that's longer than usual I think you
know at Mac's an hour
usually yeah and so I personally have
used us Bank for a lot of my accounts
this isn't a commercial they just charge
less fees it seems like though you know
do your own research because if I were
to do it over again there's a chance
that I would change I'm not sure who I
changed to but I've used historically US
Bank they don't charge any fees for
low-end accounts well no but some of the
other banks do charge fees yeah but I
mean like Citibank I think they wanted
to charge us like 20 bucks a month and
that's just silly
yeah so that didn't make any sense I
think the next thing we toked about
trademarks and you want to tok a little
bit about trademarks and what our
thought processes or what your thought
process has been on that so it seems to
be very specific on the design itself or
like there are certain limitations on
what you can trademark overall so
hopefully do your research on that and
then there's a cost associated with that
but yeah so it's it's almost it's like
$275 or something yeah and it's gonna be
for video cards or even performance nut
butter and you wouldn't there's two
different types of trademarks there's
more than that but you can do a logo
mark or like a like a I figure that's
called like an art mark basically or you
can do a word mark so I can trademark
the the logo of performance nut butter
but I can't trademark the name
performance nut butter because it's too
same thing with vino garde yeah we we
could trademark the logo but we can't
trademark the name cuz it's just it's
too generic but now here's a big thing
arianna automatikally I mean when we
toked about it you wanted a trademark
the truth is trademarking doesn't give
you as much protection as you might
think if someone if a bigger company
comes along and they want to sue you
over it even if you have the rights to
it there's there's always if they have
more money they can basically drain your
bank account so I think the only reason
people should get a trademark is if
you're willing to spend fifty to a
hundred thousand dollars in legal fees
to sue somebody else that's that's
actually one of two reasons the second
reason is if you sell on Amazon and you
want to get
blanking on the term right now but you
get extra features extra selling
features so basically you can put images
you can put like in the in the
description of the product you can put
all kinds of cool stuff to help sell
your product yeah and so that's what it
is worth it because of that you get
access to extra features and it does
provide you some protection maybe some
big company might decide that it's not
worth the trouble to come after you so
that that is a thought as well I think
the next thing we can tok about I mean
there it's really people get hung up on
all the legal things to starting a
business a lot of people it was just we
we did all of these legal things after
the fact that like after designing it
after we did it after the kick so yeah
and so it was just taking it step by
steps once you have the account you know
awesome what do we do next
just take it step by step and then it's
not as overbearing and this is not legal
advice but most people they focus on all
this legal junk before they've ever sold
a single product it's like you're gonna
end up spending on a thousand dollars on
legal fees or on legal like business
licenses etc and you don't even know if
your business is gonna go work like go
test it out go see if you can make some
sales that's an another thing people get
hung up on business cards and maybe they
should make t-shirts for their company
you know all this like random junk don't
don't do that like go make sales so for
us we did the Kickstarter first and once
again that might not be the best legal
strategy there might be some issues with
it but the government isn't coming after
you know Vino card that made 5,000
dollars on Kickstarter and we still
report it afterwards after we get all
the legal documents but it's just like
you know that they got bigger fish to
fry basically so the next thing I guess
is the sellers permit a lot of people
get hung up on that you wanna tok a
little bit about your experience with
that yeah sellers primates like for
California again it was super simple you
just go to their website and you had
filled one out for me yeah yeah which I
realize but it was simple I just logged
in with all of my information against
Boal my name business name all of that
and I think that's right yeah it's free
it's another one of those things where
people get really hung up on oh what's
the legal thing I need to do it's like
just go to some website you fill it out
it was free it's just not that not that
big of a deal yeah but again it's just
another piece of paper that allows you
to really legitimize your business so
it's again it's it takes steps towards
that but I mean so the last thing I
think we'll tok about is credit cards
and this is a favorite topic of mine
yeah now it's now it's now yours too and
the reason I say that is because a lot
of people in America have this fear of
credit cards like you did when I first
met you
yeah and it's if you use you should be
using credit cards credit cards should
not be using you and what I mean by this
is a lot of credit cards will pay you to
sign up and spend money with them and
don't spend more money than you have but
basically you want toked about this a
little bit and I'll fill in the gaps
actually yeah so basically what I like
about credit cards is I mean I guess the
important thing is to look for a credit
card that is worth signing up with
because a lot of them give you sign up
points so $500 $1,000 yeah all of this
towards travel or really whatever you
want to use we use it towards travel and
hotels and things like that but a lot of
them for example for the one I used was
the chase mileage plus card and it's
like a United card no it gives you
50,000 bonus miles right just for
spending $3,000 in three months which if
you have a business is easy to do yeah
just put your ads on there yeah you know
maybe wait till you're about to sign buy
a new computer or Christmas gifts
whatever it is and there's a lot of you
can search around there's a lot of
strategies on how to light game the
system with this I'll let I'll save that
for another episode or something but I
chase sapphire rewards is another one
did you get that one too yeah all of
these give you about 50,000 miles or
points and if you use them correctly
it's like $4,000 easily I haven't paid
for a flight I think maybe I have paid
for one or two flights just because it
was so cheap but you
I haven't paid for a flight in seven or
eight years my my credit card points pay
for all my flights so start using credit
cards don't let credit card use you any
other thoughts on this keep up with the
payment and then you'll just the reward
is so awesome yeah just by using what
you are you already spend every month
anyway so it's nice to kind of easily
use a credit card and give me points
yeah absolutely
so I think the moral of this story is
don't be afraid of all illegal things
and every States a little bit different
but for sure in the u.s. it's super
some countries might be slightly more
complicated and as a reminder tomorrow
is the big day I'm launching the passion
products formula I'm only taking ten
people and the truth is I almost didn't
charge anything for this course it's not
about the money for me only reason I'm
charging anything is to make sure you're
serious I don't I want to only accept
people that are gonna do this that are
gonna launch they're gonna create their
own passion product so basically I'm
going to teach you how to create your
own unique product sell it
crowd fund it with a Kickstarter sell it
on Amazon hopefully make a lot of
passive income and the only thing I want
out of this is a testimonial for you
from you so I want you to be so
successful that when I go to launch the
real version of the course you're gonna
you'll be one of the testimonials on my
page so I'm gonna be pouring my heart
and soul in this it comes with a ton of
bonus every course I've ever done like
everything I can do to make you want to
join this I am doing and like I said ten
people so it's gonna be real intimate
little family here so if you're serious
in 2019 I'm creating passive income
creating your own business this is like
an amazing opportunity I wish I would
have had this I was been jealous of
Ariana the host I told her like when I
first started I had no idea what I was
doing and I felt like I gave you a
little bit of a roadmap and it's been
working Amazon sales have been doing
really well yeah so hopefully I see you
guys in the course and that's it I'll
put a link up here to the course and the
link down below to the course that'll be
launching tomorrow and other than that
have a good new year see you guys

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