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My "legal" dilemma

Discussion in 'Making Money' started by SebastianG, Dec 26, 2012.

  1. SebastianG

    SebastianG Junior Member

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    There's one thing I have noticed lately which also bugs me insanely:

    In order to sell expensive services, you need a contract.

    How do you guys handle that part? Do you actually go through all the fuss with registering a real company and pay all the taxes to everything? I'm not necessarily talking about tax evasion here, I'm all fine with paying taxes. But I'm trying to take my business to the next level and I keep reading threads of how you are supposed to offer your customers contracts and have it all legit. Right now, whatever service I offer, there's no contract, just word of mouth mostly. ( I also have 3 more months till I'm legally allowed to start up a company, so that's quite problematic too)

    What do you guys do, is it possible to work around it and still get some sort of contracts to make it all more legit? (I offer good, legitimate stuff, just thought I'd mention that so you don't get the wrong idea)
     
  2. Duffers5000

    Duffers5000 Elite Member

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    A contract can be person to person. You dont have to set up a company although if you are earning money there are benefits to be a registered business.

    Contracts are only worth so much...if someone doesnt want to pay you or does not want to continue using your service its not a copper fast guarantee for you. As well as having a contract you should have tught accounts and regular invoicing so if somebody does stiff you its only for a months work. Never let amounts rollover...I will send an invoice at the end of every calender month wheter you owe $10000 or $1. And also stick strictly to your terms with clients from the start. Send an Invoice and if its not paid within a reasonable time 5-7 days...query it and follow it up requesting a date to be set for all future payments.
     
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  3. SebastianG

    SebastianG Junior Member

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    Hmm, I see, the thing is, I'm not necessarily doing this to have a legal backup, but as much as offering more legitimacy and safety for the clients buying from me. I'll look into invoices and dig it up.

    My question is, I could basically issue invoices to my clients for my services, just like that? with no legal backup, no company behind it, just my basic name? Paying no taxes?
     
  4. alternatesword

    alternatesword Jr. VIP Jr. VIP

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    If you're using paypal, then generate invoice and mention what you're offering for the price quoted and then get paid, before starting the service (It's safe). No registration required until it's necessary in your country. You may refer your country government website for "Whats the annual income limit for not paying tax" and other procedures.
     
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  5. theseodude

    theseodude Regular Member

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    well, everybody has to pay tax, registered company or individual.
    so you could be working as "John Johnston" and pay tax, or you could register a business "Great SEO services" and pay tax.
    I dont believe there is a special license to do seo...if you want to be "legit" you probably just need a basic business license.

    edit: i noticed you are in romania. I am talking about usa here.
     
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  6. Duffers5000

    Duffers5000 Elite Member

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    You can download loads of free professional looking invoicing software.On my Iphone I use invoice2go spend 30 minutes setting up a professional looking template and you are all set, I can invoice clients on the move.

    As for the other company/vat/tax etc....Just make the money first then worry about setting up companies..If after 6 months you find yourself banking thousands a month with more clients coming on board then go the full company...If not dont bother....it can cost dough to form a company in some countries. In the UK I can do it for £59 and be set up in a day but I dont open companies for fun as there are more auditing and accountancy tasks to be taken care of.
     
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    Last edited: Dec 26, 2012
  7. SebastianG

    SebastianG Junior Member

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    Hmm, I see, thank you for all the advice guys, you've been very helpful :) I appreciate it!
     
  8. Schvamp

    Schvamp Power Member

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    As for right now I'm working as a freelancer, i found a great site (in swedish) wich let me send invoice to my client and they handle all taxes for me, for an extra cost i can put my own logo on the bill. No plans to start my own company since I don't want any more paper work and knows nothing about the laws. :)
     
  9. SEOtheWorld

    SEOtheWorld Newbie

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    I'm not sure about in Romania, but in the US if you are not of legal age(18), it doesn't only mean you can't start a company, it means your signature on a contract doesn't mean anything, because you can back out of the contract at any time with no repercussion. Of course many small businesses wouldn't even be aware of that, or would never ask about your age in the first place if you presented them with a contract.