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owesem75
02-14-2014, 01:37 AM
I am sure many of you are already expert in online business, but there are also many who wish could start one. I heard this question from a friend and I would like to know your point of view about it.

He said, he intends to run a website that will earn him some extra income on top of his full time work. For the sake of legality, does he really need to open a fully registered company (off line registration at the trade ministry) first before he officially launch the website or can he just create and launch it, start earning from it and forget about registration and stuff?

Hostinv.com
02-14-2014, 05:48 PM
Technically, you can open a website without the need of having be fully registered in the "real/offline world". However, if you're going to profit about your web business, and you want to do it the legal way, you'll need to declare your income to the taxes organization of your state/country at some point. Many countries does not require to register a business itself, so you can declare that income as an individual, but the best is to check the federal/local regulations and laws.

Good luck.

delusional
02-15-2014, 04:32 PM
You don't need to start a business for a website. The website will not make any money in the first 6 months and might not even make money in 2 years. Creating a profitable website takes a lot of work. Not only setting it up and waiting.

crimsonghost747
04-02-2014, 03:47 AM
Each country has their own way of doing things. However in most places I assume it would be completely ok, especially in the beginning, to not have an official company and file the income as a part of your early personal earnings. If the business becomes very big, then it might be necessary to create a company to make calculating financials easier and possibly profit from a lower tax rate.

fredkawig
04-02-2014, 09:07 AM
Depends on the laws, if your country does not have any legal restriction and tax requirements for a website then you may do as you please but for some countries they do and thus you have to comply with the requirements first.

Taru
04-02-2014, 09:45 AM
I think it may be best to just start off with it as a personal account and maybe just transfer it under a company name once it starts making money. It takes a long time for sites to monetize, usually, and I think there is not much point in diving into the formalities even without proof of the site being profitable. if, however, he wants everything to be formal right off the gate, then I don't see much wrong in that either, as there are probably not many expenses and taxes for a startup company registration anyway as long as it's not yet raking in profits.

harpy
04-02-2014, 11:42 AM
What kind of website or business is your friend planning to run, OP? If he is looking at large-scale operations, one that involves a lot of money and naturally, risks, he might want to take out a business permit so he can operate legally within his country. Registered businesses are protected, to certain degree, by law and if he wants to enjoy the same protection or perks of running a legal business, he has to set up his business the old fashioned way.

As far as I know, however, many online companies do not operate with business permits and some offline businesses operate with an online storefront under a different name. The latter is legal: your virtual representation may vary from your offline representation; the former is risky though. Come taxation time, if your auditors notice a discrepancy with the way you've acquired certain assets and the profit you declare, you could find yourself in serious trouble. On the other hand, if your auditors are lax with the whole taxation thing, then there's not a lot to worry about.

centralnetwork
04-02-2014, 11:42 AM
Anyone can generate an income from a website without having to register a company, but your friend must be aware of taxation because, as noted above, each country, and even each state, has different regulations when it comes to new business or work-from-home activities.

In addition, depending on what the revenue source of the website is about, some legal requirements may apply. Running sponsored advertising or offering freelance may require you pay taxes whether the company retains them or you declare them at a later time.

On the other hand, there are affiliate programs that requires a business registration number in order to release payments. So that, it is all about where your friend lives, and what are the money-making schemes that he is implementing.

David Bentley
11-11-2014, 04:00 PM
You don't need to register as a business. Just report it. I have several passive income sources that do nothing but make money. They are not really "businesses". I consider my only business to be ZeroZen...which is an entity that does business with others, so it is a little more "official". If it's passive, it's awesome!.

rohit_
07-25-2016, 12:55 AM
The more important thing is the Domain you are registering for your website. To register a domain you don't need any kind of authentinc and legal info. So you can purchase a domain and make a website without having any offline paper work. But for a commercial website you have to use it as your personal website. You can not have some company or registered organization features like providing tax-invoice to clients, a business account on PayPal, etc. But you obviously have to show the incomes from then website in your income-tax ladger.

Mrclean
07-29-2020, 04:55 AM
BUT WHY REGISTER A COMPANY IN US?

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(2) Access to fast banking services and payment gateways like Stripe, so that your business runs smoothly.

(3)Having your own business in the US makes it easier to apply for a VISA or permanent residency.

Plus get a US Business Bank Account and Stripe Account for E-commerce/Online Businesses.

Visit: https://www.dunster.io
Use the discount code (MRCLEAN) to get $40 discount on your registration.

Josephine Alberto
11-20-2020, 10:54 PM
The registration process of a company depends on the rules of your country you are living. But if you are planning to start an online business through a website, then you should first know the benefits of a website for your business.

In this era, if your business is not online, then you might lose 70% of customers. Therefore, a business needs to have an online presence.

Benefits of building a website for your business:
1. Website helps Professionalize your Brand
2. Improves your Business Credibility
3. Offers a Lasting Value
4. Helps you to bring in more customers
5. Gives you online presence 24*7


To know in detail, read this blog on why a small business needs a website (https://www.gurutechnolabs.com/importance-of-business-website/). By reading this blog, you will get effective reasons to build a website for your business.

AarushiAashi
06-08-2021, 03:20 AM
Enlistment of Companies, Co-agents and Intellectual Property Rights (Trade Marks, Patents, Designs and Copyright) in South Africa.