Have you registered your business?

5 replies
At what stage did you actually do it? Was it more for taxation purposes or for reasons of branding your name?
#business #registered
  • Profile picture of the author kristinecpa
    I registered my business from day 1. I'm a CPA and I work with a lot of businesses who don't register their business until well after they've been in business. That can be dangerous for several reasons:

    - someone else may snag the name you want to use for your business
    - legal reasons (you are responsible for contracts and debts personally if you don't have a formal business entity in place)
    - taxes (the IRS can classify you as a "hobby" for tax purposes if you don't treat your business like a business - hobbies are limited in what they can deduct, so being classified as a hobby can cost you money).

    I'm sure there are other reasons I can't think of off the top of my head, but if you're online to make money, you're in business and you should treat your business like a business. Registering your business is just one way to do that. Other things you can/should do include setting up separate business checking and PayPal accounts, hiring advisors (lawyers, accountants, etc.), getting a tax ID number, setting up a bookkeeping system, etc.

    I'm curious to see how many people have registered their businesses. As a CPA who works with a lot of eBay sellers and online business owners, I've noticed that the trend seems to be to not register your business until you have a reason too ;0)
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  • Profile picture of the author Jim Pearson
    If you don't structure your business like a business and form a corporation etc.
    Are you really in business?

    How do you have anything that you really can grow or sell?

    And will anyone really take you seriously?


    Your thoughts?
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  • Profile picture of the author innocent07
    Banned
    Originally Posted by Li Weng View Post

    At what stage did you actually do it? Was it more for taxation purposes or for reasons of branding your name?
    Depends- which types of websites are classified as a business?
    or just the ones that make money?

    If u have a simple website with adsense, would that be classified a business ?
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  • Profile picture of the author Chris Lockwood
    What exactly do you mean by "register? Get a business license, form an entity like a corp or LLC, or what?
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  • Profile picture of the author JOhnny Depth
    In my country we don't on making money from the Internet. MIne is just a blog so I'm not thinking of registering since they aren't used to it.
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