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When is a website considered a "business"?

Discussion in 'Making Money' started by StarKillr, May 8, 2016.

  1. StarKillr

    StarKillr Newbie

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    So recently I started up a forum. I only have a couple of members so far and very few posts, but it seems that as the days are going by, things are picking up just a little bit each day and so on. I've put a couple of ads on the site, but it's pretty much a labor of love at this point... However, if things keep picking up like this, I'll likely get a decent amount of active members and will start bringing in some money.

    In the future, I do also plan to sell merchandise, as well as accept donations with certain rewards for donations of a certain amount, and so on... I'm sure states may vary somewhat, so it could depend slightly on where I'm located... But when exactly does this website (or any other similar sites I may start) meet the criteria of what is considered a business? After how much would I start to pay taxes? Do I have to meet that amount to be considered a business, or is simply selling merchandise and accepting donations to my site enough to meet the definition of business?

    I'm a young guy, and this is my first real attempt at a website, especially a viable/successful one, and this is all kind of foreign to me... Any help would be greatly appreciated! :)
     
  2. artemis42

    artemis42 Regular Member

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    Occupation:
    Self-employed
    See, in my country, basically, till you enter the first taxable income slab, you're free to do whatever you like. After you enter the first tax slab, you can still work alone saying that it's personal income through freelancing or sale of a service. Let's go down the line, 2 years later. You're bringing in lots of money, I mean (I hope you do, all the best) 6 digit sums monthly, then if you keep getting it as personal income, it'll all get taxed. The best thing about a business is that you get some sick benefits from it. The biggest example being of startups, the companies are in debt but the ceo's aren't. Simply because even if you found a company, you need to hire people and all that shebang. You need to meet a certain set of criteria (varies country to country, state to state). You can keep earning alone, but you will eventually partner up with people in which case you can open an LLP or Partner Firm. Pvt. Ltd. is expensive but you get out of some taxes as you then pull an income from the profit instead of the entire profit. You can reinvest freely, and the company being in debt or loss does not mean you're in loss. You and the company/business become separate entities. Plus, there's so many ways to add to your income ;)