Is Your Business Legally Registered?

You had me up to the BBB. While they do help to improve customer confidence, I think their relevance has diminished in this industry.
 
For my own business, I don't have plans yet because my site was still under construction by myself to improve the content, script and widgets....especially ads and hoplinks. I will try to register my business soon in web hosting programs.
 
This is a great post Steve.

My company isn't legally registered and to say it Im not that proud of it, I want to get it legally registered so I can do contracts, Only this is that its too much money for me ATM and Im only a 10th Grader trying to start his job life time. I just hope I can't get into big trouble for running a company like this and not being legal age If there is a legal age... And although some of my client do know that im just a 10th Grade, they trust me and know what there risking but I prove it t them that I can do it.
 
Providing great service and support is huge, but being in the 10th grade, you can't legally enter into contracts, so there is a risk on the client side as well as yours. How do you handle liability?
 
I don't think he can't really...Can he? I mean you would need (in my opinion) atleast $5k for just-in-case situations...Never know when a client will take you to court.
 
Money in hand is irrelevant.

The issue is whether or not he can legally enter in to a contract.
 
I believe you can always have your parents, or other guardian, to back you contractually. Assuming you're making over $400 annually, how do you handle income reporting?
 
Hey Steve, Great post, enjoyed reading the responses in this thread.

In Ontario, (Canada) you cannot lawfully conduct business using a business name unless it is a properly registered name. The only exception to this, if you operate the business using your personal given name(s). As we like to conduct business in a lawful and professional manner we have been registered since our inception date of 2003.
 
Thanks postasite. When you look at signatures on posts and threads in web hosting forums, how do you, as a prospect, know anything about these providers? I know, myself as a brick and mortar business owner, risk dire consequences if I select the wrong provider. I can't afford to take one step forward and three steps backward.

Employees trust their owners to make responsible business decisions, including the look, feel and professional presentation of their business online.

Perception is HUGE. If you're a provider, it's not how great you actually are, rather how you're perceived. If your support team fixes an issue the same as another provider, but your perceived support is condesending or shallow, your business will suffer.

A huge risk factor is the stability of the provider - will they be here tomorrow and five years down the road? When you have issues, do they have the resources to resolve them quickly?

In the case of whether your business is registered, the risks are exponentially increased if they aren't. What is your recourse if they close shop and keep your money? And this isn't just isolated to legal recourse. The time you waste chasing down issues relates to real dollars lost.
 
Artashes said:
eBay has all kinds of insurance to protect buyers.


You only need 1 disgruntled customers (with money) to sue you, and if such happens, you'll end up being personally liable if you are not incorporated.
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You don't necessarily need to be incorporated. There are many different types of business registration. A sole proprietorship isn't necessarily bad if you have the means to protect yourself. Sometimes it is a better idea to become an limited liability company or an s-corp.
 
So you guys are saying skip the incorporation and go for liability insurance?

Even if you just have a commercial web site?

Also, to the 10th grader, I would imagine you would have to have a parent or guardian enter contracts for you. Or, you could get emancipated, like Ashley Qualls, who had her own web business since 14.
 
Yes I'm legally registered. The thought that I could be found out down the line and be liable for taxes or other costs just wouldn't let me do anything else but be legal and all above board.
 
In the U.S. You can be a sole proprieter no file for a business license, but file the amount you make on your taxes under your social security number.
 
We are a registered business in South Korea.

Korean clients do not want to deal with a company that does not have a business registration certificate.

Most companies in Korea need you to issue a TAX Invoice for them.

If you say you don't issue a tax invoice because you do not have a registered business they would not buy from you.
 
We have been registered since day one, well tech. day one was a mind storm for about a week coming up with our domain name but after that you know. :D

Honestly, I would not buy from a place that was not registered and I know many others feel the same. Those who do not, well of course its a personal choice, but not one I would like my potential clients to make and go elsewhere.
 
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