One of the major benefits of starting an online work at home business is that the initial investment required is substantially less than a offline business.

Usually, the most common causes of business failure is under capitalization. Many of the business owners who run into difficulty do so not because they may lack the budget required to run their business, but because they start a business when a certain level of income is vital to their survival. It's great to start out with high expectations and enthusiasm, but it is equally important to be realistic - most work at home businesses will not produce a steady income for the first couple of years.

Local Legal Considerations of Starting an Online Business
The next step is to call or stop by your local town hall and tell them you are considering starting your own business. Ask if you need to register this business and if there are any special requirements or licenses for a home based business in your area. More than likely, you will not need any special permits or licenses to operate a business out of your home, however you may need to register at a local and or state level.

Another issue you may run into when checking into these business matters is zoning. If you're in the U.S. you'll find that many zoning laws are largely ignored by work at home business owners. I do recommend however, that you become aware of the zoning laws in your area, even though the type of business you'll be operating is usually not subject to zoning problems.

You should be able to get all the information you need from your local government, but it is advisable to consult an attorney to be sure you get started on the right side of the law. It would be a shame to get your business going and then face fines or closure because you are violating local laws.

Legal Resources:

USA
U.S. Federal Trade Commission
U.S. FTC Privacy Initiative

Canada
Business Start-up Assistant

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