Register as a Business?

Registering as a business is a good use of money. I don't think it's necessarily a must for startup hosting companies, though it may help get a company started because potential customers will trust it more.
 
InertiaNetworks said:
It is always recomended to register as a business. This way, you have the law on your side!
Click to expand...

So i can register as a business and then scam everyone and the law will be on my side.

I DON'T THINK SO!!

As a business (registered or not), you have to comply with current legislation.

But if you are doing anything that is generating an income then you have to declare this as earnings.

In the UK you need to do this as a minimum

1) register with the HMRC for tax purposes
2) register with ico.gov.uk under DPA if you store personal details on a computer or manual files.
3) open a business account ( more and more wholesalers require this)

points 1 and 2 are the important and legal requirements
 
easyhostmedia said:
So i can register as a business and then scam everyone and the law will be on my side.

I DON'T THINK SO!!

As a business (registered or not), you have to comply with current legislation.

But if you are doing anything that is generating an income then you have to declare this as earnings.

In the UK you need to do this as a minimum

1) register with the HMRC for tax purposes
2) register with ico.gov.uk under DPA if you store personal details on a computer or manual files.
3) open a business account ( more and more wholesalers require this)

points 1 and 2 are the important and legal requirements
Click to expand...

And what´s the time and money those steps take in the UK?
 
ventureer said:
And what´s the time and money those steps take in the UK?
Click to expand...


1) register with the HMRC for tax purposes
Free and 10 to 15 minutes online or a 1 hr free consultation with an accountant

2) register with ico.gov.uk under DPA if you store personal details on a computer or manual files.
£35 a year and a simple form to complete and post off

3) open a business account ( more and more wholesalers require this)
Free to set up and usually free of charges for upto 24 months, 1 hr chat with banks business manager.

but regardless with points 1 and 2 as these are legal requirements
 
For what it's worth (and this is not a shameless plug, as I have NO affiliation with them), if you are in the US, I have had a lot of luck with using LegalZoom to do this kind of thing. I have incorporated two difference entities in the past, and it's taken a simple phone call to discuss with them what the best way to setup an LLC or registered business would be. Each time it's been worth every penny, IMO.
 
Its always better to be registered. The laws would depend on your state/country. Might want to talk to your accountant or lawyer.
 
Business should be registered if you are really serious with it. And it will leave a good impact on your clients.
 
BlastPort said:
For what it's worth (and this is not a shameless plug, as I have NO affiliation with them), if you are in the US, I have had a lot of luck with using LegalZoom to do this kind of thing. I have incorporated two difference entities in the past, and it's taken a simple phone call to discuss with them what the best way to setup an LLC or registered business would be. Each time it's been worth every penny, IMO.
Click to expand...

How much did it cost in total working with LegalZoom? I've heard good things but never actually worked with them
 
Firstly write a plan thats the most important step. In my case i have registered my business after i got my first customer. My advice would be if just started your business just wait till you see the first revenue from it and then decide which is a better option.
 
easyhostmedia said:
So i can register as a business and then scam everyone and the law will be on my side.

I DON'T THINK SO!!

As a business (registered or not), you have to comply with current legislation.

But if you are doing anything that is generating an income then you have to declare this as earnings.

In the UK you need to do this as a minimum

1) register with the HMRC for tax purposes
2) register with ico.gov.uk under DPA if you store personal details on a computer or manual files.
3) open a business account ( more and more wholesalers require this)

points 1 and 2 are the important and legal requirements
Click to expand...



I think you might have missed his point

Hosting can be a risky business, say you host a particular site and for whatever reason it goes down, either costing money with the downtime or being lost entirely, this client then attempts to sue (whatever is in you T&C) the being LLC or LTD, any compensation the client has will be from the company, if you are a sole trader then the financial penaltys could be from your saving, your home, etc.

Also point 3 isn't necessary
 
Depending on the country you're in, you may be legally obligated to register as a business, but only once you make a certain amount of profit. Example: $25,000 in 4 consecutive quarters.
 
If I were a client, I would be scared of a host who is not registered company holding my critical data ever. Thats why I would say register before anything else so that your clients have a peace of mind
 
We have registered with Washington State as a LLC business. The fee for registering a LLC business where our business resides is roughly $25.00/year.
 
You must log in or register to reply here.

Supporters

Back
Top