Check into the new rules for state registrations, "presence," and similar matters before you go too far, lest you have mass suicides.
Ah, well that definitely sounds exciting. If you could offer a few more details, that would be great. I confess, I myself have no experience with online teaching -- all I know is that the online Master's degrees have had some success here.
The prospect of a full undergraduate degree, however, is making some people nervous about how this might impact the quality of our regular "on the ground" undergraduate offerings.
As part of the "negotiated regulations" subsequent to the last reauthorization of the Higher Education Act, any institution offering programs in a state needs to be registered as a degree-granting institution in that state. It generally used to be that you were registered and authorized by your home state and online students were under that umbrella. Now, in some cases you're still ok if you have no other "presence" in the state, but some states consider you to have "presence" if all you do is send recruiters or recruiting mail there.
It's a big, freaking bureaucratic mess of the first order. Fortunately, full implementation of the regulation has been postponed until July 1, 2014. However, you still need to show a "good-faith" effort to comply with state regulations in each state where you have a presence, as defined by each state's own (sometimes idiosyncratic) regulations.
The best info site for all this matter is wcet.wiche.edu.
We have a pretty successful online program, but it's degree-completion only. It's a very difficult act, balancing the traditional residential campus with the online (and f2f) adult degree programs.