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Hosting Discussion > Operating a Web Hosting Business > Web Hosting Business and Legal Issues > Do you really need a business permit to run a webhosting company?
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  Post #1 (permalink)   03-17-2007, 08:27 AM
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Online business and traditional business seem to be in two different worlds. In my country, the online industry is still unpopular. Offline business is required to get a business permits and pay taxes. Do you really need a business permit to run a web hosting company?
 
 
 


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  Post #2 (permalink)   03-17-2007, 08:50 AM
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That's really something you need to clear up in the state where you run the business.

Just as an example, I recall that where I live, the law requires (even freelancers) to register within 15 days of starting a sustained business activity.
 
 
 


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  Post #3 (permalink)   03-17-2007, 09:14 AM
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In Canada, as far as I know, you can do business under your personal name if you do not generate a certain revenue income bracket. However, it really limits you to certain advantages a corporation can benefit from. You also become legally responsible if you operate under your personal name should something happen.

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  Post #4 (permalink)   03-17-2007, 09:21 AM
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I think no matter what business you are in, whether it's commerical, online or industrial you need a permit, however it depends on the jurisdiction your business doing business.

Small internet webhosting businesses aren't exactly being pounded by the IRS (U.S) or the HM Revenue (U.K) for taxes because its difficult to keep track.
 
 
 


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  Post #5 (permalink)   03-17-2007, 11:00 AM
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Quote:
You also become legally responsible if you operate under your personal name should something happen.
Where I live, the "limited liability" barrier can rather easily be dismantled in court, especially in cases where there's a single owner, so it's important to know how much protection you get in your country, given your particular situation.
 
 
 


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  Post #6 (permalink)   03-18-2007, 04:25 AM
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I think in Canada that rules & regs re: companies may vary slightly from province to province ... and then again between regions & towns.

When I was thinking of starting up my own online business ... I had to register my company name (in order to have a tax license etc) ... and I needed a business permit to operate my business out of my home. But I have been told that the need of a business permit is up to the municipality I live in & not the province. I don't know if that is entirely accurate though.

If you are unsure what is needed in your area ... you should consult the local rules & regs ... or ... do what I did at the time and hire a lawyer to tell me in writing exactly what I needed in order to open for business. That way, if something got missed, I figured I could blame him for the error hahaha
 
 
 


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  Post #7 (permalink)   03-22-2007, 02:06 PM
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Interesting views. We are required to get permit here in India and as revenues are generated we need to pay taxes over any and all income generated.
 
 
 


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  Post #8 (permalink)   03-29-2007, 02:09 PM
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Thanks for your replies.

Different countries really run differently. In my country, a business permit is a must if you are business is located in commercialized areas and you need not pay taxes unless you reach a certain amount of income on annual basis.
 
 
 


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  Post #9 (permalink)   04-03-2007, 06:24 PM
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There is always the lawsuit issue to consider if you do not have some type of incorporation, your just opening up your personal finances to trouble.
 
 
 


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  Post #10 (permalink)   05-12-2007, 01:38 AM
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If you're serious about doing business then I recommend you incorporate it. And if you're thinking about waiting to see how the business goes first then think about it like this. What difference would it make if you incorporate now or later if you're serious about doing business and are going to put work hard towards it.
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  Post #11 (permalink)   05-12-2007, 01:16 PM
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In the USA this depends on if you wish to open a merchant account.

Most if not all merchants require a business certificate.

If you wish to use services such Paypal or 2checkout then you don't need a certificate.

The cheapest way is to do a Doing Business As ( DBA ) which can be filed in your local Court House. A small Corp is better but costs more to setup.

Really this depends on how serious you are about your business.

If you are just starting out and have a small monthly income I would just use your SSN and use PayPal and a CC service like 2Checkout.

This way you can see if this business is really what you want to do.

This however limits you is some ways in that billing becomes a small problem using these services. But you can get around these minor problems.

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  Post #12 (permalink)   06-25-2007, 02:13 AM
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A Business is a business - just that! Whether it be online, offline, large, small, etc if you are in business declare it.

If you are required to do so by law then do it!
 
 
 


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  Post #13 (permalink)   06-26-2007, 09:57 PM
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Quote:
Most if not all merchants require a business certificate
used three different ones with my authorize gateway not one of them asked for a business license
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