Can I use PayPal in my online business to make it a legal company?

AC/DC: Can I use PayPal in my online business to make it a legal company?
Hi,
I am starting a online business and I want to know what are the legal procedures to make it legal, I mean, when people go there to advertise whatever they want and pay a certain amount of money per month to advertise using PayPal to me, I need to make it legal.

And if that works with PayPal, that means I can also use Google Checkout and Yahoo! Wallet, isn’t?

What can I do to make my online business legal? What are the procedures?

I live in Alberta, Canada. Please help me with suggestions and tips. Thanks!

Answers and Views:

Answer by Adam S
You can use any of those methods to receive payment. The way in which you receive payment for your services usually have nothing to do with whether or not your business is “legal.”

Answer by mubeweras
You need to register your business in your province and with your national government.

Whatever the Canadian version of the American IRS should be notified too.

Paypal is legal in Canada as is Google checkout.

Using legal payment methods is not the only requirement to making your business legal.

Answer by MrKnowItAll
Ah, well, I dont know what the procedures in Canada are, but you have to at least register yourself as a sole proprietor in a small business, $ 45 fee, and a name search – usually you can get away with a preliminary search for $ 10, or you may need to do the full search for $ 40 or so. Go here and select your region for full information:
https://www.bdc-canada.com/BDC/services/business_reg_main.htm

Here in the US you need at the very least a Federal TAX ID number from the IRS. You can back that up with a fictictious name purchase from the state, and be ready to go using any made up name for your business. If you want to buy things tax free for resale, then you need to have a state issued resale certificate and use that to open an actual company bank account.