Do I Need An LLC Or An Individual Entrepreneur When Creating A Website

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Do I Need An LLC Or An Individual Entrepreneur When Creating A Website
Do I Need An LLC Or An Individual Entrepreneur When Creating A Website

Video: Do I Need An LLC Or An Individual Entrepreneur When Creating A Website

Video: Do I Need An LLC Or An Individual Entrepreneur When Creating A Website
Video: Don't Form an LLC until You Watch This! (3 reasons you should NOT form an LLC) 2024, April
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Today, more and more trading operations take place on the Internet. Most companies want to open or already have their own sites. However, it is not always necessary to have registration as an LLC or individual entrepreneur when creating them.

Do I need an LLC or an individual entrepreneur when creating a website
Do I need an LLC or an individual entrepreneur when creating a website

Websites on the Internet are created for various purposes: advertising and promotion of your own company, goods or services, sale via the Internet, familiarization with people or events. Depending on these goals, you need to decide whether you need to open an LLC or an individual entrepreneur immediately after creating the site.

When formalization is not required

The very creation of a website or even an online store does not imply the official registration of the company in the form of an LLC or an individual entrepreneur. You can create a site for both an individual and a legal entity. Further questions concern the activities of the company related to this site. If it is needed only for informational purposes, does not bring any profit to its owners, then no registration with the tax authorities is required. The same is true for making a profit that the tax authorities cannot track. That is, if you receive profit from advertising on the site, placing banners, links, videos, but transfer it to your e-wallet, such profit cannot be taxed, therefore, registration is not required.

At present, laws have not yet been created that could require tax payments from electronic settlements between users. But with the help of electronic money, you can make purchases on the Internet, pay bills, withdraw these funds to a bank card, transfer to a personal bank account. Of course, in this case, the amount of settlements will be limited, so for large-scale payments this method will be inconvenient, but still, official registration in the form of an LLC or individual entrepreneur will not be required when withdrawing earned funds from the site to electronic wallets or an individual's bank account. Moreover, even with a larger-scale business, for example, when creating an online store, whose earnings can be measured in hundreds of thousands of rubles, you do not need to register in the tax office, but only on the condition that the site acts only as a visual material when buying, and all operations conducted through an officially registered company.

Conditions for official registration when creating a website

There is also a lot of individual entrepreneurs or LLCs in the Internet business. Usually an already existing and registered company creates a website that it can use in any kind of activity: informational or commercial. If the site is created for the purpose of making a profit, while settlements with suppliers and customers must be made through a bank account, you must first register an LLC or individual entrepreneur, since this account is not created for individuals. Therefore, when a company wants to act as a reliable intermediary, seller, employer for its clients and customers, make transactions without problems and create a basis for long-term activity via the Internet, it must be officially registered with the tax authority.

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