At what time do you need to register an Online Company?

9 replies
Hi, I'm trying to figure out if or when do I need to register my Online Company "Legally/Officially" in some kind of way.

I currently run a Social Network iOrbix.com which is growing very rapidly, almost exponentially every month.

We would be looking forward to get some investors interested in our company in the coming month, but we never "Officially" registered this company.

We just bought the Domain name and Servers basically, and all files, designs and source code are originally ours.

My friend and I who built this company are not Located in USA by the way.
Myself, Caribbean. My friend, Portugal.

Where should we go to register this company, or is that even needed in the first place?

Most of our earnings come from Google Adsense, and the rest from Survey/Offers companies.
Would we need to pay some taxes on these earnings eventually?

Thanks,
-Andrew
#company #online #register #time
  • Profile picture of the author stacyfox
    you should really talk to a lawyer who handles new business set ups in the jurisdictions where you're operating. Legal advice from non-lawyers on a public forum usually isn't worth the pixels its printed on.
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  • Profile picture of the author nakmuay7
    the only reason you need to register is for paying tax on earnings and liability insurance.
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    • Profile picture of the author RentItNow
      Originally Posted by nakmuay7 View Post

      the only reason you need to register is for paying tax on earnings and liability insurance.
      Or to sell shares.

      Unless you can show a proven asset and earnings, that is a moot point.

      Do like facebook and keep it to yourself.

      Btw, be careful when you do register as you will then be responsible for a lot more than you may have bargained for.
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  • Profile picture of the author Andrew Davis
    Thanks very much for your helpful responses everyone!


    @ stacyfox:
    Yes I know that I should not take everything said on these Forums as my final advices, but just like lawyers, I believe the Professionals here do also know allot about these Business related questions, after being in their field for years.
    So I thought it would be a good idea to get some initial direction, before heading off to some costly lawyers to get similar answers from them.


    @ nakmuay7:
    Thanks!
    I definitely won't want to register my company just to pay taxes
    But I'll research on "liability insurance".


    @ RentItNow:
    I think I got allot of insight from what you just said!

    I quickly researched, and it seems that Facebook is a "Privately held company", I never knew that.

    Yes I do want to sell shares, but I think I can try getting in touch with Private investors probably.

    I just read here:
    Privately held company - Wikipedia, the free encyclopedia
    "A privately held company or close corporation is a business company owned either by non-governmental organizations or by a relatively small number of shareholders or company members which does not offer or trade its company stock (shares) to the general public on the stock market exchanges, but rather the company's stock is offered, owned and traded or exchanged privately"


    So that means, I can probably still sell stocks, but "traded/exchanged privately", not publicly.

    "Btw, be careful when you do register as you will then be responsible for a lot more than you may have bargained for."
    Yes, I really would rather avoid having to register my company if it really isn't necessary, because I know taxes and allot of paperwork will come soon after... :|


    Thanks again!
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    • Profile picture of the author sysprog
      This is a really something that you need to talk to a lawyer about. However I will throw in my two cents for what it's worth. If it were me I would register and create a business entitiy(LLC, Corporation...etc). This is of course is dependent on where you are in the world and what the business entities are in that part of the world.

      The reason why I say do it right away is for liability purposes. That is what these entities do. They protect you personally from liability. So if someone sues you they can't touch you personally just the business. So from the very beginning you should be protecting yourself from anyone that wants to sue you personally. If they do sue you they only get what the company has and not things like your house or car.

      Again this is something that you need to talk to a lawyer about but it's always better to protect yourself then pay big for it later.
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  • Profile picture of the author theultimate1
    What about registering in Delaware? I know you said you and your partner don't reside in the USA. But I've heard about offshore business registrations in the state of Delaware. Apparently, the taxes are pretty low too. I'm not sure as I'm still only trying to get more information on the same. However, some Warrior(s) might have a good idea about this.

    I request everyone to share their views on this.
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    • Profile picture of the author theultimate1
      Originally Posted by theultimate1 View Post

      What about registering in Delaware? I know you said you and your partner don't reside in the USA. But I've heard about offshore business registrations in the state of Delaware. Apparently, the taxes are pretty low too. I'm not sure as I'm still only trying to get more information on the same. However, some Warrior(s) might have a good idea about this.

      I request everyone to share their views on this.
      Any light any Warriors can shed on 'Offshore Incorporation in Delaware'? Thanks [sorry for bumping]
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  • Profile picture of the author BitterXwife
    There is no official governing body for Internet-based businesses telling us that we all must register our online businesses there or else.

    Check with the government offices where you live. Many times, the simple fact that you are operating a business within a certain town, county or state means you must register it -- just as you would register an offline business. Check to see if you need a business license for the city and/or county, a fictitious name registration with the state, a tax ID number with the state, etc.

    As far as registering your LLC (or whatever you choose), there are different schools of thought.

    Some folks register the LLC when they first get started.

    Other people say they will wait until they are actually making money, and THEN register the LLC.

    But what happens if you get sued in that little window of time between starting the business and getting it registered? You might lose everything you own, which often happens as a sole proprietor. When you are set up as a sole proprietor (meaning you just start your business on your own), you run that risk.

    Definitely talk to an attorney (which you already know).

    It's fairly cheap to set up an LLC.
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  • Profile picture of the author DuaneZ
    Find yourself a good lawyer with experience or background in online business. When you find one they should be able to tell you all you need to know about registering a company either in your own country or off shore. Then you can weigh the pros and cons of each.

    I registered my company right away as I new this would be needed in the future. It was sort of my investment in myself and start the positive thinking from the start that I know I could succeed online. So talk to a lawyer and do it right.

    You do not register your company only to pay taxes but also to have business write offs for all those business expenses of new products you purchase, travel to the IM courses etc.
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