How do I conduct my ecommerce business legally without incorporating ( LLC , S Corp etc) it just yet?

operate as a sole proprietorship or find a partner or 16 and operate as a general partnership, generally neither of this entities has to be registered with the Secretary of State's office to operate. Of course, without an appropriate entity to insulate you, you do expose yourself to personal liability for debts, damages, etc. assigned to the business. So you should consider a good liability insurance policy in the interim. The state of North Carolina does not impose any paperwork requirements to set up a sole proprietorship. North Carolina sole proprietors have unlimited liability for all company debts and obligations. This means creditors can pursue a sole proprietor's home and other personal assets as compensation for business debts, judgments and liabilities. Pick a name for the business. A North Carolina sole proprietorship automatically assumes the owner's personal legal name. However, the owner of the business may elect to register an assumed name, or fictitious business name, which allows the company to use a name other than the owner's personal legal name. Check name availability with the County Register of Deeds office where the North Carolina sole proprietorship operates. Conducting a name availability check ensures the assumed name of the business is distinguishable from other businesses that operate in the same county. The method to check name availability may vary depending on the county where the sole proprietor conducts business. This step is not necessary for sole proprietors that use their personal legal name. Complete a certificate of assumed name with the County Register of Deeds office where the company operates. Provide the sole proprietor's name, address and social security number. Indicate how long the company has existed and the length of time that the assumed name has been in use. Sign and date the certificate of assumed name. Submit the fee to file the assumed name, which varies from county to county. Acquire an employer identification number from the Internal Revenue Service. This allows a sole proprietor in North Carolina to use an EIN as opposed to using his social security number for business purposes. The quickest way to get an EIN is to call the IRS at 800-829-4933 or apply online using the IRS website. Provide the sole proprietor's name, social security number and home address. Indicate the name and address of the business, and describe the nature of the company's business activities. Communicate the number of individuals employed by the business. The IRS will assign an EIN to the North Carolina sole proprietor at the conclusion of the online or telephone session. Log on to the North Carolina Department of Revenue website. Complete an online business registration form. This form allows sole proprietors in North Carolina to register for sales and use tax, machinery and equipment tax, and income tax withholding. Describe the company's business activities, the sole proprietor's social security number or EIN, name and home address. Communicate the date when the business came into existence, the address and the name of the company. Obtain licenses and permits. The licenses and permits needed to legally operate a sole proprietorship in North Carolina will vary based on the nature of the company's business activities. For example, an automobile dealer or barber in North Carolina must obtain the appropriate state-issued occupational license. Contact the city or county register's office to determine the local licenses and permits needed to run the company. Most of these steps would also apply to a general partnership.

Thoughts on insurance and LLCs: Without insurance, your LLC will “protect” you from personal liability, even though you lose all the assets held by the LLC. Insurance can prevent virtually all loss to your net worth. Consult a business lawyer about this. Your threshold question is whether to incorporate (forming an LLC or an S Corp). It is a tradeoff between (1) unlimited personal liability and (2) paying to form the LLC and the taxes and fees payable by the LLC. (Consult a local lawyer as to his fees, state filing fees and taxes.) If risk is your main concern, the LLC is more advantageous; if costs, then a sole proprietorship. Whether to incorporate is a question only you can answer. How risky do you think this business is? Incorporation protects your personal assets from creditors of the entity (i.e., the LLC or the corporation) but the entity remains liable for debts. The first thing to do is to get good liability insurance coverage–talk to a knowledgeable insurance agent. Ordinarily the entity will not protect you from bank loans because the bank will require you to guarantee the loan personally. An LLC or an S corp will protect you from liability while letting you deduct the business expenses on your personal tax return. An S corp has tricky rules for eligibility; if you lose the S corp treatment, the corp will become a C corp, liable for taxes on its income. This means double taxation. An LLC works just as well without the tax risk. If you transfer the building to a corp, you will regret it when it’s time to sell the building. You will be better off to buy liability insurance on the building and lease it to the LLC if you opt for an LLC. Since you are moving, you should organize the LLC under the laws of your new domicile after you move. Otherwise you may have to register your LLC in both states.

You are free to operate as a sole proprietor. However, I generally do not advise doing so as you gain insulation from liability within an LLC or S corporation that you do not have as an individual. Of course, in either situation you should obtain insurance in case of harm to other persons or property. My first question is why would you wait to set up your entity given the modest cost of doing so? If you know to which state you will move, you might be able to arrange a temporary address there now and incorporate in that state. You could also incorporate in a "neutral" state, e.g., Delaware and register in your new state. In sum, you can operate without a corporate structure, but you are best served, in my view, in creating one as early as possible.