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Q: Legal Requirements for Starting an Online University ( Answered 5 out of 5 stars,   2 Comments )
Question  
Subject: Legal Requirements for Starting an Online University
Category: Business and Money > Small Businesses
Asked by: hendersonuniv-ga
List Price: $25.00
Posted: 11 Apr 2006 15:16 PDT
Expires: 11 May 2006 15:16 PDT
Question ID: 717977
Hello,

  I wish to start an online university that will grant MBA degrees. I
am a PhD in finance and will get another faculty who is a PhD in
Marketing to teach courses.

  I live in Nevada, US. I checked the Nevada government website and
they have significant licensure requirements.
http://www.cpe.state.nv.us/nonaccinfo.htm

  I am looking to incorporate in a state that does not have such
onerous reqirements. I have the time and energy to create great
lectures on business subjects for students. I do not have the time and
energy to jump through bureacratic hoops.

  I am looking to incorporate in a state with minimum requirements. As
I will deliver high quality teaching materials and examinations, it
will be a completely honest operation.

Which state in the US has the minimum legal requirement for me to set
up the university? Do I have to get a license from the state
government? Is there any other country where an university can be
based that does not have licensing requirements? How difficult will it
be base the university in another country while living in Nevada, US?

  I am confident of providing a high quality education (my own PhD is
from a top university). I just don't want to have to spend energy
dealing with bureaucratic obstacles. I want the easiest way to set up
the university, and then let the students decide the worth.

  Please feel free to ask if you require more information.

Sincerely,

Jay

Request for Question Clarification by czh-ga on 11 Apr 2006 16:35 PDT
Hello hendersonuniv-ga,

The link you've provided indicates that you're interested in starting
a non-accredited institution. Considering the number of dubious
diploma mills that regularly try to entice naive customers it's not
surprising that most states take an interest in licensing and
regulating educational institutions.

http://www.quackwatch.org/04ConsumerEducation/dm0.html
Degree Mills

Here's a link that will give you an overview of state requirements. 

http://www.ecs.org/dbsearches/Search_Info/StateNarrativeReports.asp?tbl=table6
What is the state's licensing approval authority over higher ed institutions?

If you're interested in providing a high quality education would you
be interested in teaching at some of the highly rated online
universities?

Thanks.

~ czh ~

Clarification of Question by hendersonuniv-ga on 12 Apr 2006 15:28 PDT
Hello Czh,

  I may be interested in teaching at a reputable online institution,
but my long term goal is to have my own university. As I had mentioned
in my earlier post, I have a PhD in Finance from one of the top 3
universities for finance.

  The answer I am looking for is "what is the minimum bureacratic
effort required to set up an online university?"

Regards,

Jay

Clarification of Question by hendersonuniv-ga on 13 Apr 2006 13:08 PDT
Hello Myoarin,

  Thanks for your comments. It does not necessarily have to be
registered in one of the 49 states. I am willing to locate
internationally. The question then would be what are the pros and cons
of locating internationally? Which country would be well suited for
doing that? In fact what are the pros and cons of not registering
anywhere? My purpose is to provide high quality education. I do not
see any benefit to the student from being registered somewhere.

Regards,

Jay

Request for Question Clarification by czh-ga on 13 Apr 2006 14:43 PDT
Hello hendersonuniv-ga,

You say, "I do not see any benefit to the student from being
registered somewhere." Mot being registered, licensed or accredited is
one of the hallmarks of a diploma mill or degree-for-purchase. The
benefit to the student of getting a degree from a registered,
licensed, accredited institution is that the degree will be accepted
and recognized by other educational institutions and prospective
employers when a degree is specified as a requirement for admittance
or for a job.

You might want to review some resources that address this question. I
don't doubt that your "purpose is to provide high quality education"
but it is not clear to me how your students would benefit from
enrolling is your program.

http://www.web-miner.com/deunaccredited.htm

You might want to follow the links for some of the unaccredited
institutions listed here to see where they are located without getting
licensed or being involved with "bureaucratic effort."

All the best.

~ czh ~

Clarification of Question by hendersonuniv-ga on 14 Apr 2006 10:43 PDT
Hello Czh,

  Thanks for the link. Will check it out. The purpose of the degree
would be to teach students finance and accounting (and some marketing)
skills so that they could do the work needed by their future
employers. It was with that in mind that I said that registration may
not serve any purpose.

  I do agree that being registered is going to help students convince
their employers about their knowledge, but if the students are taught
well and the university acquires a reputation for good teaching, then
registration would be redundant.

Regards,

Jay



Hello hendersonuniv-ga,

You say, "I do not see any benefit to the student from being
registered somewhere." Mot being registered, licensed or accredited is
one of the hallmarks of a diploma mill or degree-for-purchase. The
benefit to the student of getting a degree from a registered,
licensed, accredited institution is that the degree will be accepted
and recognized by other educational institutions and prospective
employers when a degree is specified as a requirement for admittance
or for a job.

You might want to review some resources that address this question. I
don't doubt that your "purpose is to provide high quality education"
but it is not clear to me how your students would benefit from
enrolling is your program.

http://www.web-miner.com/deunaccredited.htm

You might want to follow the links for some of the unaccredited
institutions listed here to see where they are located without getting
licensed or being involved with "bureaucratic effort."

All the best.

~ czh ~

Request for Question Clarification by czh-ga on 14 Apr 2006 11:53 PDT
Hello hendersonuniv-ga,

I appreciate your response and I?m feeling very frustrated because I?m
still not clear about what would provide a satisfactory answer. I
think the problem is that I don?t know why you want to start an
unaccredited private university.  You say, ?The purpose of the degree
would be to teach students finance and accounting (and some marketing)
skills so that they could do the work needed by their future
employers.? This still leaves me wondering about what?s in it for you?

Are you wanting to teach because you?re passionate about your subject
and you want a platform to present your expertise? You could do this
by teaching at any number of universities ? online or on campus. Are
you wanting to teach because it would provide an additional revenue
stream for you? Are you wanting to teach because it would serve as a
marketing tool for your other enterprises? There are so many ways to
teach without starting your own university.

http://www.elearners.com/
http://www.theonlinemba.com/
http://www.businessweek.com/bschools/
http://www.worldwidelearn.com/index.html
http://www.financial-conferences.com/
http://finmath.com/Links.html#Conferences/Seminars/Workshops


I wonder if you?ve considered other alternatives. You could teach
advanced professional seminars either through industry organizations
or under other professional or academic umbrellas.

Trying to find the right search terms in order to suggest how you
might reframe the question I ran across a couple of interesting
websites. Both present ways to offer training without having to start
an educational institution.

=====

http://www.financeprofessor.com/financeclasses/financeclassesmainpage.htm
Bringing the real world to the classroom and vice versa!

http://www.financeprofessor.com/
http://www.financeprofessor.com/about/bio.html
Who is the FinanceProfessor? 
Dr. James Mahar Jr. (Jim)  is the author of FinanceProfessor.com?s
newsletter and the person behind FinanceProfessor.com.  He teaches
Finance at St. Bonaventure University.  The newsletter and web site
started as a result of his keeping in touch with his students but has
spread to the point where the newsletter has subscribers in 5
continents and in over 30 countries.

==

http://www.exinfm.com
Matt H. Evans -- Excellence in Financial Management

Mission 
My mission is to provide the best thinking in finance for all types of
organizations throughout the World. Additionally, I seek to provide my
services in a very affordable and accessible manner. This includes
openly sharing my knowledge so that everyone can learn how finance can
create value.

http://www.exinfm.com/training/index.html
Financial Management Training Center
Welcome to the Financial Management Training Center. All courses are
free and accessible from this web page. Courses are downloaded to your
computer by clicking on the hyperlinks on the right side of this page.
You can take a short course online by clicking on the "online"
hyperlink. You can also download a short course in three file formats:
pdf | exe file | word. Finally, if you want to take the final exam
online, click on the "take exam" hyperlink.

=====

This sites are offered by individuals who are passionate about
teaching who also offer other services. I wonder if these websites are
in line with what you?re trying to do?

As you can see, I?m very interested in helping you find a solution but
I need more information about your goals and objectives. Please let me
know how to proceed.

~ czh ~

Clarification of Question by hendersonuniv-ga on 20 Apr 2006 21:00 PDT
Hello CZH,

  Though I haven't had my question answered, I have gained quite a lot
of information from your posts, and also feel you have made quite an
effort. Please post an "answer" so that you can get paid, I will
accept information you have provided till now.

Regards,

Jay
Answer  
Subject: Re: Legal Requirements for Starting an Online University
Answered By: czh-ga on 21 Apr 2006 15:57 PDT
Rated:5 out of 5 stars
 
Hello hendersonuniv-ga,

Thank you very much for accepting the information I?ve provided in my
clarification requests as an answer. I will not repeat it here. I?m
sorry I wasn?t able to get you exactly what you asked for but I hope
that you?ve gained a better understanding of the online education
marketplace.

Wishing you well for your project.

~ czh ~

Request for Answer Clarification by hendersonuniv-ga on 22 Apr 2006 08:55 PDT
Czh,

  Thanks for the good work!

Jay

Clarification of Answer by czh-ga on 22 Apr 2006 10:41 PDT
Thanks Jay for the five stars and kind words. I'd love to help you
with your future searches as you develop your plans.

~ czh ~
hendersonuniv-ga rated this answer:5 out of 5 stars

Comments  
Subject: Re: Legal Requirements for Starting an Online University
From: myoarin-ga on 13 Apr 2006 06:39 PDT
 
Hendersonuniv,
Just a suggestion:  searching through the requirements for the
remaining 49 states and then deciding which one has the least onerous
ones would be a max. priced question.  But then you probably would not
trust the answer entirely  - I wouldn't -  because there would still
be requirements, and also, you might find that some requirements in
another state are more voluminous but for you easier to satisfy.

Got the picture?  It could be a sticky question to try to answer,
probably leading to many clarifications as the story unfolds, with you
refining your parameters as you and the Researcher work on it.

I am wondering if you wouldn't be better served by a Researcher's
finding all the states' sites with their requirements so that you
could inspect them, since the final decision will be yours, even if a
Researcher came up with a short list.   I could imagine, that in the
course of the process, other factors become a consideration.

Good luck.
Subject: Re: Legal Requirements for Starting an Online University
From: myoarin-ga on 14 Apr 2006 19:20 PDT
 
I see your clarifications.  Registration would not improve what the
students learn, but since there already are so many registered
degree-giving institutions, not being registered is a real shortcoming
in the eyes of students who have the choice.  You just cannot compete,
and your school could only develop a reputation by having students who
go on to be successful, but the potentially good ones will be taking
courses at accredited institutions.

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