How to legitimize online business
We decided to open an online business and do not know if registration is necessary for this? You are puzzled with the right question, because it does not belong to a number of those who need to be addressed in perspective as necessary. Although your business is planned to be virtual, you will earn in the real world with current legislation. You should know what opportunities and pitfalls the World Wide Web hides from entrepreneurs.
Virtual Feature Classification
Let's take a close look at what exactly the Internet now offers for business, how we can take advantage of it, in what cases we need official registration. At the moment, everyone is able to purchase almost any product and get expert advice on his concerns, without leaving home, having access to the World Wide Web.
Adherents of Internet services have long ago mastered the tools that the Network generously suggests using: creating your own website, groups in social networks, various trading platforms and labor exchanges,filled to capacity with offers of services in various fields of activity.
Sites and social networks
The wise entrepreneurs of the virtual sphere start with social networks before embodying the idea of creating a super popular website. Such a start does not require investment at all and serves as an excellent guide in probing the target audience and market niche. Having created a group and having worked on your reputation for a year, you can recommend your services as an interpreter, legal adviser, image maker in the best ratio of price and quality.
The field of activity here is not limited to offers of professional advice and services based on freelancing. In social networks, the option of creating an online store on the website has long been provided. That is, it doesn’t matter what you want to sell, the product or service, all the conveniences are provided for the novice entrepreneur.
And when you get contacts, reputation and feel the balance, you can begin to develop your own website. Its main difference from groups in social networks is the ability to present information about products and services in the most convenient form.Also, your own website, as the quintessence of individuality, is able to bring the rating of your services or online store to a global level.
Advertising and Barter
Ranking on the Internet works wonders. The solid and confident reputation of the service provided is directly proportional to the growth of your popularity. And the more visits you have, the wider the view in the perspective of your business.
On the example of the Internet, it is easy to feel how reputation can work for you. Virtual spacers are willing to buy advertisers for money. The business is noticeably gaining momentum when partners' banners and other advertising information appear on your pages.
Your banners will also appear on the pages of partners in exchange for providing them with a similar service. The presence of mutually beneficial barter always speaks about the dynamic development of your business.
This idea should be considered at least in two directions: as a way to effectively sell your goods (services are rarely popular), and also as a separate type of business.
On such sites, sellers place goods, and buyers submit bids for the desired product. It is also very popular auctions.Buyers compete for the purchase of your product, and it goes to the one who offers the highest price.
Marketplace is an attractive type of virtual business. The main income of such sites is usually a commission from transactions and advertising in the interface. This industry is developing very actively and is not a complex and quite profitable business model.
Labor exchanges and freelancing
The ability to follow what is happening on these sites and live in the rhythm of the information being updated here is a gold mine for consultants and those who want to earn money without reference to the workplace.
Such exchanges are practically marketplaces. Only here sellers do not show goods, but their own services. And buyers are customers of these services.
A very convenient way to build partnerships. Perform design orders, translate texts, advise on issues of your professional sphere - an individual business that does not require any costs, thanks to the opportunity to use the options of the virtual world.
Now that the basic tools of the virtual world are in front of your eyes, you can choose which of them will be the most acceptable.But in any case, you are obliged to secure your services before the harsh hand of justice. It is necessary to understand where registration is required, and where not.
Work on the basis of freelancing does not require official registration. Of course, according to all the rules, a private person, receiving money for the work done, must issue a CPA and pay tax to the state. But customers are well aware that registration increases the cost of services, and without unnecessary talk, they transfer payment to a personal card or pay for the work done in cash, without making your activity public.
Regarding sales through trading floors: all responsibility for entrepreneurship lies with the administration of such sites. They act as a bulletin board, as well as an intermediary between an individual and the buyer. To put up for sale any thing or crafts, registration is not required.
Therefore, selling your product through such sites, you have nothing to worry about. But, being engaged in a virtual intermediary business, you should understand that in order to create your own trading platform, registration of a legal or natural person is obligatory.
In the case of your own website or the “services” page on social networks, everything is a bit more complicated.Opening an online store requires mandatory registration. Since the buyer pays for the purchased goods with you, this is business that requires at least the opening of a state of emergency.
But if you sell, for example, homemade notebooks, lamps and other crafts with a frequency of three trinkets per month, who wants to fool with the registration? Permanent contributions and reports will discourage all desire to develop such a harmless and cute business. Therefore, the supervisory authorities simply turn a blind eye to such activities, and registration in this case is not mandatory.
In short, registration becomes a necessity when your business is gaining momentum, attracting the attention of the tax inspectorate. Practice shows that this usually happens when the monthly profit exceeds 500 y. e.
Is it a noble business risk
Having decided to open an online store, you will hear and read hundreds of comments, whether you need or not to register a company. Diametrically opposite opinions will be approximately 50/50. Note: just as in the case of a coin flip, it is an eagle or tails. From this we can draw a simple conclusion: it is about risk.
Suppose you have an online tea shop that you bring from China. Why, it would seem, to register a business: deliver calmly to your city half a pound of tea a day, there is a small turnover, to whom some business may concern you.
But at one point you receive an order for 5 kg of aged puer of 400 y. e. per kilogram. You receive an advance payment and in a week, having met tea from China, happily transport it to the customer. And that shows the certificate of the tax inspector. You pay a fine, supply it with tea and periodically pay a progressive share of your income to avoid another ambush.
To run such a business, it is easier to register an enterprise under the current law, than to pay fines on a regular basis.
What is this form of entrepreneurship - services via the Internet, and which state services control this business?
Business through the Internet has not yet been adapted properly in accordance with the current legislation of the post-Soviet countries. There is the Law of Ukraine "On e-Commerce" and the Law "On Electronic Commerce" of the Russian Federation, but both of them are in a state of permanent refinement.And they will enter into force only after official publication in the media.
Until this happens, any sales through the website or social networks are equal to ordinary business activities. This is followed by the tax inspectorate and, as mentioned above, looks at a lot through his fingers. Be attentive, read business information and make sound decisions about the legitimacy of your ideas.
Record of a webinar on the theme "The legal side of online business":