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Fedorenko
Junior Member


Australia
463 Posts
Posted - 06 Oct 2003 :  01:04:13
Lets say someone runs a website, where they sell lots of things for profit. Are they required to be a registered buisness?

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maclover5
LC Doctor/Hot Rodder


Australia
5830 Posts
Posted - 06 Oct 2003 :  01:59:07
I think they probably would. Do you know any business teachers at school? Try asking them...they should know.

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Flash
Full Member


Australia
637 Posts
Posted - 06 Oct 2003 :  02:09:09
You should, although if your personal income plus the 'profits' is less than about $50k then your accountant will be able to sort it out for you. You necessarily don't need a limited company (ABN number) but it may be a good idea to register a company name. Business rego costs about $120 for 2 years, and registering for GST is only required if you are planning on going over the threshold ($50k or therabouts) In short... get some advice from someone who knows, but I hope this helps point you in the right direction

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Fedorenko
Junior Member


Australia
463 Posts
Posted - 06 Oct 2003 :  02:28:17
Thanks, Ive been poking around the queensland sites and I have found that if I register as a "sole trader" all I need is an ABN and a buisness name. And a buisness name only costs 202 dollars for 3 years. Plus some import laws, but its much less expensive than I was thinking. Gives me something to think about...for the ultimate plan .

Thanks for your help.


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maclover5
LC Doctor/Hot Rodder


Australia
5830 Posts
Posted - 06 Oct 2003 :  02:38:36
You need a business name to be a sole trader? (oops, almost typed soul trader! ) Interesting....i didn't know that.

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Stryder
Junior Member


USA
382 Posts
Posted - 06 Oct 2003 :  03:05:27
If it's just you as the sole employee acting as a distributer, I believe you don't need to do any of that. You just need to report your income from it on your tax return. There's a section on my forums where you can ask "S2days" about it. He's very involved in a multitude of businesses. He even incorporated himself on top of everything else. Good source of info on anything along those lines.

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Edited by - stryder on 06 Oct 2003 03:06:31Go to Top of Page

cory5412
68KMLA Comrade-in-Arms


USA
4679 Posts
Posted - 06 Oct 2003 :  06:27:08
wow, what good information

I've been thinking about trying to get a business liscence or whatever, possibly build and sell X86 based computers.

Here's what I've seen thought.

My mom took part in something that basically lookslike a pyramid scheme *(you know the type, where each person in it, acts as a pump to bring the money one level higher)

For this, she basically needed to get a liscence/be registered to sell te products. Another part of that, was that this product was a health product (which my family still uses to this day) called Juice Plus+. (yes, that's two plusses.)

IIRC, we needed a liscence to sell the "whole food supplement" and a liscence for selling things in general. This meant that basically, the govt. took nearly all of her money, and if we wanted to sell something else, we coul've.

I'm not sure how it is in Australia, Europe, or Canada, but in the USA, IIRC you need different liscences, permits, and copyrights/trademarks and/or business names for different kinds of things you'll be selling. Also, apparently the business names are cheap, IIRC it was like $35/year for up to three (but you don't pay less than $35/year)

That's why I was almost able to get one of my own... (Genecomp.NET would've been nice to be real, maybe I'll try to get it down here.. )

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geekwurkz
Junior Member


USA
156 Posts
Posted - 06 Oct 2003 :  09:08:05
Well, I've got a related question... What if you run a web design buisness and your local authorites ban home buisnesses? (even though your neighbors are a couple of cows and a corn field.) Is there any way to get around that?

Nick

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Edited by - geekwurkz on 06 Oct 2003 09:09:43Go to Top of Page

cory5412
68KMLA Comrade-in-Arms


USA
4679 Posts
Posted - 06 Oct 2003 :  10:06:39
do some things to differentiate "home" from "place of work"

for example, I would put your "place of work" in a small building external of the main living quarters of the home, this could be a garage, and/or a shed outside.

If that doesn't work, then maybe you should just design the websites, get paid and don't even consider it a business (as far as law is concerned...) where do you live that you're not allowed to have a home business anyhow?

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Fedorenko
Junior Member


Australia
463 Posts
Posted - 06 Oct 2003 :  18:24:13
If you are in Australia, find the "Smartlisence" pages, and you can find a little series of questions that will tell you every lisence you will need to get. Its really helpful.

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cory5412
68KMLA Comrade-in-Arms


USA
4679 Posts
Posted - 06 Oct 2003 :  19:03:19
hehehe, being in the USA though, I believe that there's numbers you can call in your local phone book... (maybe)

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The Balance Of Judgement
Senior Member


Ivory Coast
1006 Posts
Posted - 06 Oct 2003 :  21:23:42
In most places you don't need to register a business name or stuff like that *if* you offer services as your full name. For example, if you offer services under your legal name, it's pretty self explanatory. (Reciepts and invoices are made directly from your legal name to the client, with no mention of *any* type of business name.)

For Example:

January 17th, 1967

From:

John Riley Jr.
67 Apple Road
Texas, Nevada
90210

To:

Frederick Johnson
39 Terace Lane
Newton, Alabama
569845

This invoice is for the 12 hours of Lawn work performed for Mr. Johnson from September 2nd to September 4th 1967. Total rate is 12 dollars US per hour.

Total Invoice: 144.00 US

Payable To: John Riley Jr.

Signed:


*end sample*

In this invoice, no mention of any business name is made. So, to actually sell things you don't have to be a business as lng as you sell things personally, without any mention of business name.

However, once you start making enough money that taxes are an issue, not only is a business good sense for legal protection but it gives you advantages in tax season.

If you register a business as one of the various Inc., or LTD., the business becomes a legal entity which means if you make a mistake and someone sued you, they actually sue the company, which means they cannot touch your personal assets. (For example, if you messed up on a big sale and you were taken to court, if you didn't register a business as Inc or LTD or LLC, you would personally be held responsible for any damages awarded.)

Please note that this info can apply generally anywhere but is mostly based on British Columbia, Canada's laws, and might not fully apply in your area.

(One fact is that any form of business unless registered as LLC, INC, or LTD, if you are even taken to court or have bills that must be paid, these bills are applied to your personal net value/worth and even if you have a business partner, if he fails to pay a bill, they come to you next to get money, cause you are legally not exempt.)

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cory5412
68KMLA Comrade-in-Arms


USA
4679 Posts
Posted - 06 Oct 2003 :  21:45:55
which is why lawn care and garage sales are legal

but like you said, that's not a business, and the concern is a business

It's a web business, so I'm assuming that the liscnence would be different than if he was doing it like, opening a store.

Doing a home based business in your legal name, is different than just doing things for people, in your legal name...

homebased business in legal name would be much more complicated than the $35/year fee for a 'name' IMHO..

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The Balance Of Judgement
Senior Member


Ivory Coast
1006 Posts
Posted - 07 Oct 2003 :  00:04:30
There is a fine line defining what is considered "freelance" or "self employed" and "home bussiness".

If I sold computers and my services (which I do) I do it under my name. Sure it much like a business but it's all done by me personally. I don't have no fancy name and everyone knows me by my name, and if they recommend me, it's always "you should hire so and so, he's good and cheap" etc.

I mean, if you have over 1,000 customers then it's time to start thinking yeah it's a business, but if you deal with just a few people say, under a thousand on a sporadic basis, then I think it's something personal.

For example, if you sell watch batteries online under your personal name, it's not exactly your home business...because typically I associate a "business" as having an actual third entity name for the business, whereas if everything is done through your personal name with no mention of anything else, it's kinda hard to classify it a business. (Untill it reaches a nice big size)

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geekwurkz
Junior Member


USA
156 Posts
Posted - 07 Oct 2003 :  17:34:07
quote:

If that doesn't work, then maybe you should just design the websites, get paid and don't even consider it a business (as far as law is concerned...) where do you live that you're not allowed to have a home business anyhow?


Just outside of hershey, PA... The township wants to turn the area into developments so they're doing everything they can to chase people out of the farms. I'm also trying to get a contract from the school district to surplus their Macs, but they want it to be an offical buisness, not a student trying to make a few bucks.

Nick

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·A2:2
·68k: 7
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Edited by - geekwurkz on 07 Oct 2003 17:35:45Go to Top of Page

   

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