Do you think most hosting business are registered?

[Vovex Technology]

As today's web hosting industry rapidly expands do you think most businesses are doing things legit?

Do you think businesses are actually going out and registering with their local government to get a tax ID?

If not, why is it that so many people claim to have a "business" when they aren't even registered?

 

[BlackStorm]

Good questions.

I think a lot of people are doing it legit for their own country, in some cases you dont have to do anything except be of the legal age to take on a contract.

For registering with a business..Not every country has the same regulations and laws on this, I know that in the UK you have to earn a certain amount before having to start paying the government, someone told me its about $46000 per year but I think it might be less than that.
Its so the UK can encourage small businesses starting up.

Having a business is not as hard as you think...most people can do it these days which is why, I think, the hosting market is going downhill with so many people starting their own hosting "business".

 

[Vovex Technology]

Must be nice for UK people. Except for when I lived in England there was that thing called hmmm 16% sales tax. LOL

It wasnt expensive at all here in Michigan to get a legit business going. The LLC (Limited Liability Company) cost about $148 and a $40 filling fee. Really nothing too big. The odd thing is that you need a TAXID# to open a business checking account and to get a merchant account here in the US. I think that is one reason that places like PayPal, 2CheckOut, StormPay and other places that do not require that information are so popular.

 

[GordyMac]

I myself did not register my company/companies yet, but I do plan to. I did not want to invest the money registering my "business" if it was not going to work out, so I decided I would wait for a bit, business is doing great for me now so I think I will look into getting the details for this in the near future.

 

[FastNetServers]

I know for sure that most of the hosting companies out there arent registered especially the ones from the UK I have heard a lot about them charging taxes to their customers and they keep it to themselves. Moreover I dont think resellers need to have a registered company; however I am not sure.

 

[imported_Andrew]

We are registered in canada as a corporation.

In Canada, and I believe in the US, you need to report the revenue, no matter how small it is.

We chose to incorporate for various reasons, but mostly it was for tax and liability reasons.

Also, customers felt more secure doing business with a corporation, over a side business

 

[gooooogle]

In Norway you need to earn more then 2350 kr a month to pay tax, but you still need to be registered and fill out the yearly tax form (so they can check what you earned).

 

[BlackStorm]

How much is that in USD ($) or GBP (£)?If you know

 

[GordyMac]

Andrew, whats the cost of becoming a corporation as to a business?

 

[gooooogle]

That's 3,021.95 USD