No, you don’t have to incorporate to operate a web store. Many website owners operate as sole proprietor, especially if you are just starting. When the income flow becomes better and the business grows, then you can start rethinking your legal structure and consider incorporating. But it is not necessary at the start.

Do I still need a merchant account?

With every web store, you need a means to accept and process credit card payments – which you can do by having your own merchant account or by using a third party processor such as Paypal. Since everything is going to be provided for you, check with this company if you still need a merchant account or if they will provide it. If they will provide it, check the rates and whether you have the option of using your own merchant account with better rates.

So what else do I need to do besides creating the website using their software?

It seems you will have to use a predefined web template if everything is going to be provided. If not, I suggest you study the big merchants and how the implement the look of their site — from the colors to the placement of the Buy It Now button to the shopping cart system. The thing you need to do is to market the site, and that can be a full time task.

The design of your web store is based on whatever you want to do with it. If you want to go through the hassle of taking credit cards, then go high tech and buy somebody’s software.