After doing a little bit of googling for research, my feeling is that as long as we do not make this for our own profit (which I think was the original plan anyway) then we do not have to register as a business. Thus, I think the safest route to go is with
eBay. Although it is probably the most inconvenient route as well. We could make our site so that we have sellers submit links to
eBay auctions on our TPF site, so that it will really be the sellers who handle everything themselves rather than us. What would be really cool is if we could set it up through PHP that sellers just set up the auction on our site and the eBay auction is automatically created (but I wouldn't be surprised if they disallow / prevent this kind of automated auction making). However, an issue I see with eBay will be inconsistent pricing (since it's an auction service), which could be inconvenient for some sellers.
Another option would be to replace eBay with some kind of "pro" photo selling service like photobox.co.uk, deviantart.com, smugmug.com, and others. These kinds of sites let sellers set their own prices, rather than charging like 30¢/p a photo like those stock services. Most of them also print the photos for you, which can have the advantage of convenience but the disadvantage of limited control. However a problem with these sites is that, afaik, all charge something to be able to sell with their service (whether it be a set-up fee, a monthly fee, or a fee per sale). Also, doing it this way I think would kind of take some of the fun out of setting up our own site for selling photos.
Although there is still the possibility of not using any external service. Assuming we (as the hosts / creators of the site) make no profit from others' sales, then I think it might even be possible to build the site all ourselves, without eBay or other services. The key issue I think is that we make sure we handle as little ourselves as possible, and we leave as much as we can up to the individual buyers and sellers. So basically we would let the sellers determine their own prices and print their own photos. In terms of handling money, the sellers would have to have a way for the buyer to pay them directly. The easiest way for this I think would be to have each seller have their own paypal account. This way, we are only acting as a website to show previews of the photos and list their prices, but we are not actually transacting any business with anybody since we are not handling the money. And if the sellers do not make a huge amount of money from selling their photos, then I don't think they will have to register as businesses / corporations either (after all, not every seller on eBay has to be registered as a business, so I don't think every seller on our site would have to do so either, as long as they are selling a reasonably sized amount of
their own work). So from what I've read, it doesn't look like we'll have to register for a business license for this project, even if we do it ourselves.
Here are some links with information:
http://business-law.freeadvice.com/starting_a_business/ -- Some FAQs on businesses. The first link, "WHAT IS A BUSINESS?", starts off by saying "a business is an activity performed for profit."
http://bermangraphics.com/press/ebay.htm -- An interesting page about selling original photography on eBay. Basically they say that it is possible and profitable to sell your photos on eBay. They also give details on how to get the most out of it.
http://www.deviantart.com seems to be a really popular site for people to sell photographs and similar things.
So to sum up, we might be able to set up to sell through eBay or another service to eliminate any questions of liability, but these will also be inconvenient for the way we want to set this site up. As long as we don't handle money ourselves, and make sure that buyers and sellers understand that they are not actually doing their business through us, I believe that we can safely build the site ourselves without an external service.
OK wow this post turned out really long
