can anyone give me advice? im starting a small online service that will charge customers -- i guess you could call it a "saas." i am the only person whatsoever involved with this project. am i required to incorporate if i start charging people for my online service? do i have to file taxes as a business? isnt there a clear and straightforward guide for this kind of thing?
pdshrader|8 years ago
You aren't required to incorporate at all (but in many cases it's the best course for mitigating risk). People start businesses all the time without forming a separate entity. However, in the eyes of the law, that means that you and your business are one and the same. So if the business does a Bad Thing, you as an individual are responsible for all of the consequences of such Bad Thing. Similarly with taxes, all of the business' income gets attributed to you as an individual. Most people don't want these two things to happen, so they form an entity. You can go without, but it comes with significant risk, and you may end up forfeiting favorable tax treatment as a result.
These same issues get more complicated as soon as you involve others. Talk to your accountant. And consider what your risks are and how much your business is going to make. Find legal assistance for small businesses, or talk to a business lawyer as soon as you can.
s73v3r_|8 years ago
wheresmyusern|8 years ago