Need help. Starting a Membership site. Is this a service? Please help.

Discussion in 'General Business' started by frenzy25, Feb 8, 2008.

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  1. #1
    Hi Guys:)

    Need some help please....I've got a few questions.

    Hi. i've asked a similar question on the DP forum before.
    Having some trouble getting started.

    Well, if i wanted to start a "Membership" Site like many of u guys have, that basicly allows u to Join for a Fee and then once in you can download PLR articles monthly. (I will need to buy PLR from other places and use that for the site.)

    Q. 1. Do i need a "Seller's permit/resale license from the State i'm in to run this site? (California).

    Well,.. I just wanted to know what you "membership site Owners" at DP who run these Types of "Membership site" Businesses "Need" to run this business.

    Q.2. With this membership website, am i "Selling memberships" as a "Service" or am i Selling downloads(plr article files)? (Based on the info above.)

    (I don't know whether i'm selling Downloads or i'm a "Service" providing Memberships.)

    (If i have to get a "Seller's permit" from the state, they will most likely want to know what the seller's permit is for. They want people to get one if you sell certain things.)(it's either a seller's permit or resale license/permit. Not sure. Think they are the same.)

    Thanks guys for all the help:)

    frenzy25
     
    frenzy25, Feb 8, 2008 IP
  2. allout

    allout Prominent Member

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    #2
    I can not answer for your state. However, I checked in New York State when I ran a few dating sites and for websites, you do not need a permit of any kind. However, you do need to pay income tax on any amount you make above $600. ;)

    You can call your state tax office to ask for sure but I bet it is the same in most states.
     
    allout, Feb 8, 2008 IP
  3. frenzy25

    frenzy25 Peon

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    #3
    Thanks for the help allout:)
    I appreciate the help very much:)


    > allout, Can you please answer the "Second Question" please?(Q.2.)

    (All Plr Articles files will be "Free" every month for them to use. They can download them every month because they joined the membership site.)

    Anybody else please jump in too if you can help please:)

    Thanks again allout and all who help in this thread:)
    I appreciate all your guys input very much.

    frenzy25
     
    frenzy25, Feb 8, 2008 IP
  4. chenzen

    chenzen Active Member

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    #4
    With a membership site you sell memberships which itself can be of several types for e.g. gold, platinum, diamond
    types of members where according to their grade they can access particular areas of the site or get limited or
    unlimited content.
    Since everything is digital obviously members need to download the content, so it cannot be termed as purely
    service but you are selling something viz memberships.

    Please check with a good lawyer or an accountant for further clarifications.
     
    chenzen, Feb 9, 2008 IP