Do you need to INCORPORATE to create a MEMBERSHIP site

by 17 replies
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Hello!
I plan to provide financial analysis to the traders around the globe and was wondering if you think it is really necessary to incorporate to start receiving the payments. I guess the answer migth be clsoer to yes because their invoices will show the name of the company right? Just wanted to hear your opinion....
Kind regards,
Dima
#main internet marketing discussion forum #create #incorporate #membership #site
  • Probably not really the place to ask this, as this is full of internet marketing specialists...

    In Australia, you wouldn't have to - the structure you choose is for legal protection, or to allow you to more easily distribute your earnings - you need to talk to an accountant to find out what structure is right for you.
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    • Thank you very much for your reply...I wonder what kind of the legal structure you use yourself?
      • [1] reply
  • The kind of business structure you choose is up to you. Being a sole proprietor (in the US at least) is perfectly legal. You as an individual are able to conduct business. It's perfectly legal to do so.

    Corporations exist to limit your liability. As a sole proprietor you have unlimited liability. If someone sues you, they can get everything you own. You can set up corporations to limit your liability & have different tax benefits.

    Many people choose to operate as a sole proprietor despite the risks. The choice is really up to you. I'm not a professional that can legally advise you on this.

    When I got started I made some sales. Once I realized it wasn't a fluke, I treated it as a business and registered a corporation & got an accountant. I made about $40,000 online before I took it that seriously though.
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    • Thanks a lot for the thorough answer yes I guess it makes sense to incorporate because the liabilities can be high....another question is that you do incorporate - do you ink the payment processor will not require for the money to be sent to the company bank account or it can be sent to any account including simple personal bank account?
    • Not exactly.

      If you are a sole proprietor and create a legal issue with your online business you can be sued.

      If you do the exact same thing, but as a corporation, all that happens is you AND your corporation get sued.

      A corporation does not avoid personal liability for your actions.

      A corporation is a personal liability shield when the legal issue is created by something you are not personally involved with. For instance, if Customer A leaves a banana peel on the floor and Customer B slips on it, the owner of a corporation is not personally liable for the dangerous condition - just the corporation.

      Many on the forum are running their own home based businesses and will find incorporating has many advantages, such as tax benefits, but don't believe for a second it will be a great liability shield.

      .
      • [ 5 ] Thanks
      • [2] replies
  • Any way to incorporate to start receiving payments is good .

    Are you collecting their email addresses in exchange for a report/ newsletter? you can then promote to these traders
    -affiliate products
    -your own products
    -financial softwares
    -membership sites.
    • [1] reply

    • thank you.....yes I plan to promote my own product to this list....which country do you think is the easiest to incorporate in for a foreigner?
  • It's not necessary to incorporate to receive payments. However, the important thing here is that you haven't made any money with this business yet. The most important thing is to worry about making the money, then you can worry about sheltering it or spending it. Don't get bogged down in the details.
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    • yes....I am just thinking through what needs to be done...would love to show an established image to the first clients....like being incorporated in UK instead of showing up as a sole marketer....
  • You DON'T need to incorporate to start a membership site unless the payment provider or your government requires it. If you are setting up your own merchant account, it is a good idea as most won't touch a sole-proprietor. If you use a managed payment solution like paypal or clickbank then you don't have to. My advice is to keep it simple. Don't incorporate to start off with. It's simply not necessary, especially for small membership sites.
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    • thank you))) I wonder if Paypal allows to collect business payments for residents of such countries like Russia?
  • @dimadima,

    I am (originally) from Eastern Europe and the lack of trust toward certain shady business practices is NOT related to being or not being incorporated! There are many, many "companies" in the whole former communist bloc that I wouldn't trust with $5... not to mention a $50/mo membership.

    On the other hand, if one individual can show true professionalism and offers excellent value for my money - I don't have issues paying into his/her account.

    Let's clarify: being incorporated (or not) is mainly related to your taxation and business structure in YOUR own country. Selling good stuff internationally... is a completely different question.

    Finally, to deal with an Eastern Europen individual that 'incorporated' in Western Europe to create a decent facade... now that would start me worrying
    • [1] reply

    • thank you!)))well I must have mentioned that I am not planning to incorporate in Russia for sure - I would myself not wish to deal with a Russian company - as I am outside of it now....just have the Russian passport...the people would never know my citizenship as they would deal wit the company directly.....so I do not think it is a bad idea to incorporate,say, in UK?
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    Do you need to INCORPORATE to create a MEMBERSHIP site

    Hello! I plan to provide financial analysis to the traders around the globe and was wondering if you think it is really necessary to incorporate to start receiving the payments. I guess the answer migth be clsoer to yes because their invoices will show the name of the company right? Just wanted to hear your opinion.... Kind regards,