Hi,

I plan on starting an online business to sell online certificate programs (in which I teach) and books (that I self-publish). Could you please provide legal advice on the few points below?

. Do I have to establish it officially as a business entity? If so, how can I do it in NYC? (I'd like it be a sole proprietorship)
. Do I have to pay taxes for its income (even though its income may be negligibly low for the first year or two)? If so, where and how can I register it for taxes?
. Does the business need to be accredited to offer online certificate programs (certificates offered will be "professional" ones for professional or personal improvement, not "academic" ones for academic credits)? If so, how can I get accredited?
. For the business to be established in NYC, do I (as the owner) have to be a resident of NYC? If not, can I use a PO Box address as the registration and mailing address in all official matters?

Thanks in advance for your advice,

Gokhan

If you run it as a sole proprietorship, you do not have to establish as a business entity. However, if you want to be able to accept checks made out to the business name, you will need a DBA (Do Business As) certificate to get a business checking account.

You do have to pay taxes on income. You file a Schedule C with your regular income tax filing. You claim any revenue from sales and can deduct any expenses for the business (WEB hosting, credit card fees, printing costs, media costs, etc.). The IRS rule of thumb, is that for this to be considered a business and not a hobby, you will need to show a profit for 3 of the first 5 years.

You don't need to be accredited as long as it isn't academic.

Yes you can use a PO Box as your business address. But this being an Internet site, I don't see much value in claiming a NYC address.