Is it mandatory to register your business?

Discussion in 'Growing and Managing a Business' started by Shotgun, Oct 4, 2010.

  1. Shotgun

    Shotgun
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    For example, if you own a forum and you wanted to turn your forum into an 'official' online business, would you need to register it? Not just talking about registering a domain name. I'm talking about filling papers, tax forms, etc, all that legal mumbo jumbo.
     
  2. Fergal

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    Shotgun if you are going to be earning money from your forum, your local laws would most probably require that you register the business for tax purposes.

    What country or state will your business be based in?

    Do you have a rough idea of what your expected income will be for the first year? If it is not very high your site may be considered a hobby rather than a business for tax purposes. If it is considered as a hobby you shouldn't need to register it as a business.
     
  3. Komputergeek

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    Thanx Fergal for giving your thoughts on this.
    I think it is necessary because it is required for paying tax too and other finance.
     
  4. Mountain Man

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    In many areas if you are going to operate it under Your Name instead of a company name you do not need to register. however registering a company is usually not a big deal ($50/year in Canada) and is often a good idea anyway.
     
  5. daytrader

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    thanks fergal..
    i think i might just concider my site as a hobby.
    i even let some of it expire but those are the ones that don't reallt earn :D
     
  6. Fergal

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    If your site is profitable for you, you might want to double check that this is allowed in your legal / tax jurisdiction.
     
  7. Cathy Duncan

    Cathy Duncan
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    Well, when it comes to the legal issues, registering a business is more important, because it enables you to earn legally.
     
  8. Andym

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    Not getting your business registered is always a risk factor, when it is your source of earning then you have to pay your taxes.
     
  9. neha.lemon

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    Yeah I do agree with Cathy. It is a legal issue. If you want to earn legally and a business to grow without any problem then you have to register your business.
     
  10. ecoman

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    If you are in the UK you should call HMRC and ask them.

    It is better to be sure otherwise you might end up having a lot of explaining to do.

    They were very helpful when I called them, they even do a free tax training course which can give you a good idea of what type of business to register as.

    I believe that if you register as a ltd company and some other types you also need to register with companies house.
     

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