what legal formalities are required? also i want to know wether to put terms of use, terms and conditions, privacy policy in my site is neccessary?
I have info on my site about this stuff but your question is too vague. Setting up a company is one step - creating a legal entity. That depends upon where you are located. If in the US, you'll probably want to set up some type of corporation but there are different kinds - charitable organizations, S Corps, LLCs, etc. The second part of your post deals with putting up a web site and what the legal documents should say. It all depends upon your business and that is not a one size fits all. Hope this makes sense and helps.
yes this indeed does help, also could you just help me one bit here... what if im in some other country and have a company name which supposing someone else in the us already has... would that have any issues?
Register your name in your own country and then worry about the rest of the world later. If you are going to do business in a specific country you should also look up the business and trademark register there and find out whether your name has been used.
Privacy policies and TOS benefit you, the owner, more than the people that visit or your customers - Especially if you charge CCs in your business.
Very true. This is why it's important for you to get this right when setting up your web site. This will protect you should danger occur.
thanks once again for the info, do you think it would be better for me to hire someone to draft the legal documents and help me on how to go about this?
a good place to start a company (if you have an interenet company) in USA, Nevada search in google nevada incorporations, there are a couple of sites offering the service to create companies Best, Jakomo