SitePoint Sponsor

User Tag List

Results 1 to 4 of 4
  1. #1
    SitePoint Zealot Sesran's Avatar
    Join Date
    May 2000
    Location
    Connecticut USA
    Posts
    144
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    I have been pushing really hard into the legality of this buisness and was wondering if anyone has any input on the following questions. Some of them are really obvious, but I want to ask them all so everyone has an idea. Know one wants to get audited or penalized, so what do you do? And obviously different states and countrys differ.
    Should we register our Web design / hosting buisness?
    Do we charge tax on our services?
    Do we report income to the government?
    Should we have a tax ID?
    Any and all info on other related topics greatly appreciated.

  2. #2
    SitePoint Wizard jonese's Avatar
    Join Date
    Jul 1999
    Location
    Powder Springs GA (Atlanta)
    Posts
    1,238
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Should we register our Web design / hosting buisness?
    Yes. Registering as a company (LLC, LP, S-Corp, Sole Pro., Partnership) will help you in obtaining any future funding that you need as well as protecting you and your clients in any possible legal matters. Just weigh the options carefully, some VC and other investment firms will not invest in LP's.

    Do we charge tax on our services?
    Yea and No. You are providing a service and not a product. So while you do not charge the customer say sales tax etc you are still responsible for paying some sort of business taxed to the local and fed. gov't. Check with your city about any laws they might have then go to the county, then the state. At the state level they should give you both state and fed information.

    Do we report income to the government?
    Yes and no again. Remember when starting a company you don't want to show a profit in the first 2-3 years. So you will report income to the gov't but you don't want to show a profit. Also check with your gov'ts as they might have est. a poverty level (typically below 16-20k a year) where you don't have to pay or show anything except that you made that amount or less.

    Should we have a tax ID?
    Yes and no again. If you are a sole propritership your SS# will be your Fed Tax id. IF you are a corporation and plan to hire employees you will need a tax ID number. Ii recommend to all my clients that they skip the SS# and go for the tax ID number.

    Anything else?

  3. #3
    SitePoint Wizard silver trophy TheOriginalH's Avatar
    Join Date
    Aug 2000
    Location
    Thailand
    Posts
    4,811
    Mentioned
    1 Post(s)
    Tagged
    0 Thread(s)
    Unless of course you are UK based, in which case you could operate as a "Sole trader", "Partnership", "Private Limited Company (Ltd.)" or "Public Limited Company (Plc.)". The latter is unlikely, but all of the others may apply. Contact http://www.companieshouse.co.uk for details.

    There is a similar minimum threshold for tax in the uk, but it really depends on how you define yourself as a business. If you decide to establish a ltd company for example, you will be issued a vat registration number and would have to effectively salary yourself, with the business funds paying applicable PAYE etc.

    Whether US or UK based, you really should get yourself an accountant/business advisor to avoid getting into wet and nasty territory. Perhaps your friendly bank manager would help...

    H
    ~The Artist Latterly Known as Crazy Hamster~
    922ee590a26bd62eb9b33cf2877a00df
    Currently delving into Django, GIT & CentOS

  4. #4
    ********* Addict
    Join Date
    Feb 2000
    Location
    NE FL, USA
    Posts
    301
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    YES!
    Brain Bucket Magazine - Biker News, Views, and Event Coverage.


Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •