Decide what type of Web business you want to run. Will you sell your own product or service? Or, will you act as a drop shipper or sell other people's products as an affiliate marketer?

Choose a business name and register it with your state. Opt for a name that will be easily identifiable with your business's purpose. For example, if your Web business offers Web design services, you might name it "My Name Graphic Design." It's easy-to-remember, to the point, and tells prospects exactly what you offer.

Apply for the proper business licenses. Whether you're going to run your Web business from home or from an office, you're going to need the proper business licenses, such as a zoning permit, to operate legally. Check with your local government offices to determine what licenses you will need.

Purchase a domain name and Web hosting, both of which are relatively inexpensive. Choose a domain name that is similar, if not identical, to your business name. Many entrepreneurs opt to purchase their business domain name with several extensions, such as .com, .net, and .org to ensure that the competition doesn't grab those domains.

Build your website. If you do not have the funds to hire a Web designer to design your website, you can purchase a Web template and customize it to meet your needs. In addition, many Web hosts offer free, easy-to-customize templates with their hosting packages.

Write your business plan. No matter how daunting it seems, writing a business plan is essential to your Web business's ultimate success. In addition to providing you with a blueprint for how your Web business will be run, a business plan is also a necessity if you opt to, now or in the future, apply for a small business loan or approach investors.

Start marketing your Web business. You can have the best product or service available, but if you don't market your Web business, no one is going to know about it. You have many online options for marketing your business, many of which are free, including article marketing, starting a blog, and engaging in social networking. You can also use such paid marketing tools as pay-per-click and banner advertising.

Open your virtual business doors. Announce your Web business's official launch on your website and by distributing press releases to online press release sites. To get prospective customers excited, consider offering a limited time discount on first purchases.