Seeking legal help regarding web business

hilliebillie · #1 (**permalink**) 9th June 2006, 01:05 AM

Hi there,

When I set up a website and start to make money online, what do I need to know about liabilities and such.

Do I need a business license? Do I need to incorporate?
Should I hire a lawyer to do it?

If I do hit it big, do I need to start paying my taxes?
What kind of percentages are we talking about.

I don't even know what questions to ask to find out what I need to do.

Sigh, can anyone help?

cloud9925 · #2 (**permalink**) 19th June 2006, 02:12 PM

Yes you will have to pay your taxes even if you hit it small I would think. I want to say that there is a certain amount that if you are under than you don't have to really worry about it but don't quote me on that seeing as how I am nothing close to a lawyer.

If you wanted to seek out a lawyer then that would be fine too but I think that you should only do so if they are willing to see you the first time free and at that point you can ask your questions without getting charged anywhere from 50 to 200 dollars an hour.

hope that helps

deankinton · #3 (**permalink**) 21st June 2006, 07:40 AM

if you are in the UK the people in the companies house will help you but it is essentual that you have an accountant to fll out the tax form and to work on the anual returns

athmane · #4 (**permalink**) 21st June 2006, 09:04 AM

Hillie,

An online business is just like any other business: you need to play it legal, pay your taxes and do all the associated paperwork.

You need to get a business registration (in the UK this entails getting a VAT registration) either as a sole proprietor, a partnership or a Limited company.
Company registration in the UK does not cost more than £100, including all associated paperwork.

Whether you hit it big or not, you still need to pay your taxes. I'd advise you to use the services of an accountant. There just too much paperwork to do: end of year financials, personal tax, VAT returns and load of other stuff.

deankinton · #5 (**permalink**) 21st June 2006, 11:46 AM

one other thing i would recomend doing is becomeing tax regestered it would help you starting this up alot

hilliebillie · #6 (**permalink**) 22nd June 2006, 03:47 AM

Oh, is it?
Hmmm, god I need an accountant then,
which is better, getting one now, or when I've actually made substantial money first?

deankinton · #7 (**permalink**) 22nd June 2006, 03:55 AM

getting one now is far better they will take you through all the forms and will know you personaly

varchar · #8 (**permalink**) 23rd June 2006, 08:35 AM

Natwest Business is excellent for new companies starting out. They handle most things for you, including using their branches as the registered address needed for registration. They may not handle all of your accountancy issues, but they'll help out alot and give some good advice. That's probably the cheaper option to hiring an accountant, but not as easy.

netgal06 · #9 (**permalink**) 16th July 2006, 07:16 AM

This is an interesting question. many people dont think that an online business falls within the same laws as a phsycal business. yes it does!! I dont know if it is the case with all countrie, but here in australia technically I need to have a business licence on my premise (outside I think) if it is a home business.

You need to check what the laws and procedures are within your won country. Not knowing where you are emailing from, here is a link in case it is from austraia or for other australians that may be searching these forums.

www.abr.gov.au/ (australia)

the good thing about registering a business in australia, is it is the only way you can get the domain ending '.com.au' so its a way consumers know that you are a legit. business

natasha85 · #10 (**permalink**) 16th September 2006, 04:45 PM

hmmm, a little off topic, but is it really important to get a .com.au domain, or .com.(whatever country's initial)

i mean, web is international, i don't understand why they need to put a country's initial to the domain, what's the purpose for this?

netgal06 · #11 (**permalink**) 17th September 2006, 02:23 AM

In australia the really only way to know a web business based here is legit is if they have a .com.au domain as this means that they must be a registered business. I dont know why it is but there are very few online businesses over here that dont have.com.au on their url.

I dont want to over generalise but I think that most people prefer to use online stores that are based in their own country as this means less shipping fees , quicker delivery times, and if there are any problems its a lot easier to fix the problems over the phone as it is a local call. I think this is why the online marketplace is so competitive, unless you have a unique selling point and products it will be very difficult to tap into the international marketplace outside your own country. ofcourse this doesnt apply to services-based business such as design work etc

Also another reason to have the country's domain is that many people use local search engines. Google caters to so many countires theres co.uk, com.au, co.in, and so many more. these search engines are more likely to pick up sites with their countries domain. So you would want to target your local marketplace as they are the consumers that wouldmore than likely to use your sevices and get an identical .com for the international marketplace

humpty · #12 (**permalink**) 20th September 2006, 03:11 AM

wow, that's really good info,
ecommerce ain't that great in my country, so i rarely go for local domains hehehehhe

instead, i prefer international .com companies, coz there's a higher chance that they'll do my business and ship internationally, whereas local stores usually don't do that, no international shipping, which is a pity

maggots · #13 (**permalink**) 21st September 2006, 09:42 PM

netgal is right, local sites are easier to convince local clients, since they are locals anyway, should there be anything wrong, they feel at home contacting or meeting these local people,

depending on what products and what target markets you're aiming for, starting a local site can be pretty rewarding sometimes, sometimes even more rewarding than a normal .com

humpty · #14 (**permalink**) 6th October 2006, 02:06 AM

i guess it really depends on what products or service and what target market huh

i "was" more into the digital products business, so, i'd rather go for international .com rather than local ones, in hope of gaining more customers worldwide instead of from one country only

maggots · #15 (**permalink**) 28th October 2006, 07:52 AM

Quote:

i "was" more into the digital products business, so, i'd rather go for international .com rather than local ones, in hope of gaining more customers worldwide instead of from one country only

was??

what happened there humpty

humpty · #16 (**permalink**) 28th January 2007, 08:53 PM

long story bro, long story

mini_0 · #17 (**permalink**) 6th May 2007, 03:30 PM

Although the Internet offers many benefits, using the Internet to do business can carry risks.Because the Internet is designed to offer easy communication between individual computers, it opens up the possibility of outsiders breaking into your computer systems and stealing valuable information, such as credit card numbers.Any information transmitted over the Internet can be intercepted at any point if appropriate security precautions have not been taken. This is particularly important where businesses are using broadband technology because of its continuous connection to the Internet.Unauthorised users can take your data and disclose it, modify it, destroy it, sell it or post it on the web.