Starting an online business sounds like an easy enough idea, but there is more to it than simply setting up a website, a PayPal account and saying "I'm open for business!" As in the "brick and mortar world," careful planning needs to be done when starting an online business.

Before you can do anything, you need to figure out what kind of business you are going to have—what you will offer and how you will offer it. First and foremost, it is a good idea to prepare a business plan before launching your online business. There are plenty of tutorials to help you put together your business plan. Doing so will help prepare you for the realities and intricacies of running your own business.

An online business should be treated just like an offline business. You will want to register your business properly and make sure that, legally, you are covered. The experts at your local small business center can help you obtain and file all of the proper paperwork to register your business and make sure it meets all of your local requirements. These centers are also great places to learn the accounting and marketing skills that you will need once you are ready to "open your doors."

While most people are drawn to online business because it allows them to work from home, it is vital that your online business have a physical location as well as a URL. This location can be a room or area in your home that is dedicated solely to your online business. It is here that you will keep all of your business equipment, answer phone calls from clients, take care of your administrative tasks, etc. It sounds complicated but having a dedicated space for your online business will help you stay organized and sometimes the space can be used as a tax write off!

It is important that you operate your online business in a professional manner, but nobody will know about your business if you do not spend time promoting and marketing yourself. Forums, online and offline advertising, networking—these are all ways to tell people that you are offering useful products and services. There are many marketers and mentors that are available online and off to help you figure out how best to promote and grow your online business.

Finally it is important to understand that there is more to business accounting than keeping a simple ledger or a PayPal account. Online businesses get taxed too! If you do not have accounting experience, it is a good idea to hire someone who can help you with this area of your business—someone who can make sure that your quarterly taxes get paid on time and that you are keeping track of your income and expenses properly.

Starting an online business is easier, faster and cheaper than starting an offline business and because of this many internet based entrepreneurs rush into their enterprises without taking the time to make sure that their businesses get set up properly. The more research and preparation that go into your business, the more successful you will be! Good luck!