Internet Businesses Legal Aspects vary from area to area. There are cities and counties that will require a fee from anyone doing any type of business in their district.
A business that is solely done on the internet with no products being shipped to the business owner and does not effect the traffic in your area GENERALLY does not require any local licenses.
Do check with your local authority to avoid any future problems.
If you are producing your own product from your residence double check with local authorities.
Cities do not go around checking to see if their residents are running an internet business, but you do not want that "crazy" guy down the street to hear about your successful internet business and turn you in. So CYA.
Eventually you will want to either form an LLC (Limited Liability Company)or incorporate your business, check with an attorney to decide how to protect your personal assets and business assets.
Your taxes are figured differently also so check with your CPA.
Keep a record of who you spoke with locally if you do not need a business license or any permits. Date and Time of conversation and the location of your residence. Ask for a business card if you go in person. This will validate that you did check with department in the event of a complaint or wrong information.
Record your business activities in a day planner or on a calendar this form of documentation will stand up in court.
A benefit of being an entrepreneur is the tax deductions you are allowed. Every thing that is business related is a deduction, don't forget professional fees.
National and International Legal Aspects
If you are doing business on line research the requirements Nationally and International.
U.S. Federal Trade Commission
U.S. FTC regulations are numerous and include privacy policies and child protection issues. These regulations govern all businesses in the United States and are strictly enforced.
U.S. FTC Privacy Initiative
Starting Internet Business page 3 click Branding, Get Noticed