So my wife and I are looking to start a delivery business. We would deliver anything from cigarettes, groceries, carryout from restaurants...basically anything you can think of. We are planning to work from home and maybe eventually rent a shop out as an HQ. We plan to hire friends as delivery drivers if and when needed...we aren't sure how to set up employee payment. I'm going to address 1 matter at a time, below: Employee payment: Since we, including employees, would all be working from home I can't imagine hourly wages working, all I can imagine working is having each employee being paid a percentage of each delivery fee along with tips. So say...the delivery fee for having a few items from a local convenience store picked up and delivered would be 6 dollars (prices not yet set), the employee would earn about 2/3rds of the delivery fee, so 4 dollars plus tip (the 1/3rd would go to the owners). Would this be the most efficient way to pay them? The population of this city is around 95,000 and as each employee would be operating from home we aren't sure if we should split the deliveries up by region, giving each delivery to whoever is closest to said destination or if we should split each delivery up by turn taking. Any advice would be great! How to fill out EIN for this type of business? I briefly looked over the online EIN application on IRS.gov...I wasn't sure if I should register the business as a partnership, sole proprietorship, or corporation..etc. I also wasn't sure what type of business this would be classified as? Will making a mistake on this application cause any problems in the future? Most efficient path towards less taxes? Will we pay more tax money if I register this business in a partnership with my wife or if I register it with myself as the sole proprietor? Will the tax costs change if I upgrade from a DBA to an LLC or some other form of a corporation? Should I start off DBA then go LLC or stay DBA/LLC from the get go? I read somewhere that if I've got a small business just starting out then I'd want to start off with an LLC, I've also read that if I don't have many assets (which I don't) that I could just keep my business as DBA. What would you do? Are there any merits to each business model that I should pay special attention to? The only merit to incorporating that I'm aware of is that it removes liability from the owners. I'm not sure how stock shares work or when/if they would matter. Electronic contracts? As any customer could easily place orders asking for a ton of expensive things and bail out before refunding us of the costs for their items, I was wondering if we could have some kind of electronic contract on our website/facebook page? For instance, i'd like to ensure that if we purchase and deliver an item for a client that he will be responsible for returning the item/s him/herself (I mean, you can't just make someone dish out time and money for you and change your mind and make them take responsibility for your irresponsibility.). I'd also like to be able to bill a customer if they choose to purchase something with cash and then are unable to pay because they never had the money. Electronic contract over email or facebook? I've found that you can set up a shop on facebook. For starts, if possible, I'd like for customers to request our service on a facebook business page. It would be more easily accessed and more easily advertised through likes and sharing of it's usage...etc. If I can use this, do you think it would be possible to hold customers liable to a service agreement over facebook? Employee car insurance? What will I need to do about this? Advertisement? I plan on printing out some business cards and flyers. Given this city's population of 95,000, how many flyers would be enough for starting out? We plan to hang them on doors, put them up for viewing in public areas..etc As we currently only have 1 car and both already work as pizza delivery drivers we will need to quit our jobs before starting this business...I want to make sure I can get things running as quick as possible, or at the very least, be profitable enough to survive on. Advice on advertising would be great! Thanks Will I need any certificates or licenses? Last, I'd like to know your thoughts on this business idea? I figure, if someone will pay a restaurant to deliver food to them, why wouldn't they do the same for anything else?