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Start a legal small business or not

Discussion in 'Offline Marketing' started by jinntana, Jan 15, 2014.

  1. jinntana

    jinntana Junior Member

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    Hi BHW people, I was wondering whether its best to open up a legitimate business as you offer service to offline clients so that if the potential prospect looks you up, they could see that you are a real company.

    Has anybody went down this approach, or have you just made a website and just done reselling services or designing sites without opening up a small company?

    Thanks in advance
     
  2. Jordy123

    Jordy123 Registered Member

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    Hey.

    It all depends what you mean by "look you up" if you mean just google'in your name then surely a website + company profile on twiter / fb etc be good enough?
     
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  3. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Premium Member

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    It depends on what services you are offering and who your target market is.

    Some people consider a registered business as being more legitimate and some people prefer not to deal with small one man operations.

    There are certain benefits to operating a registered company and some people will take you more seriously but it really depends on the situation and your business model.
     
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  4. jinntana

    jinntana Junior Member

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    Thanks for your advice W13OSN, I have a small team of around 3 people and I will only be targeting 2 small cities. But like you said people will take me more seriously knowing that their dealing with a registered company.

    Thanks
     
  5. burnett4congress

    burnett4congress Jr. VIP Jr. VIP Premium Member

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    You should operate as a business anyways just for the legal and tax benefits.
     
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  6. jinntana

    jinntana Junior Member

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    Thanks i'm going to go through that route
     
  7. BarryAllen

    BarryAllen Junior Member

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    What tax benefits exactly guys?
    Thanks for the help.
    BA,
     
  8. burnett4congress

    burnett4congress Jr. VIP Jr. VIP Premium Member

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    Without going into a whole seminar on the topic, the basic idea is that corporations spend money pre-tax and individuals spend most post-tax. There are of course a lot more layers to the story, but if you understand that one piece, you'll be in decent shape.

    An example to illustrate...

    Let's say you have a job (or a contractor/sole-proprietor situation) where you made $40k in 2013. Your tax rate will depend on that $40k. There are a few deductions you can take against that income like interest on a home mortgage and things like that, but basically your gross income is the basis for your tax liability.

    Or a corporation that you own made $40k in 2013. But through business operations, it spent $30k. Like if the corporation had a resolution to pay for your car and health care as a benefits package to retain good employees. That means the corporation only had a net of $10k and the taxes it owes (if any) are based on that number.

    edit: my expertise is in US taxes, but it works more or less the same all over the world.
     
  9. thisismymp3

    thisismymp3 Power Member

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    i write 25k a year off in rent alone