Declaring yourself as a business

[Ellie]

Okies...

Firstly, I am in the UK.

First of all, does selling your RMXP game count as you being a business?

I ask this because I need to buy things such as a server, etc, to run my online game. This is obviously a lot cheaper if you don't have to pay VAT, which businesses don't have to pay. But what defines a business?

Can a business have only one person in it?

Does a business have to be making money at that moment for it to be registered? Because it's a catch 22 otherwise, i.e. I need to pay for a server to run my game, but need my game to be running to make the money.

Does it cost anything to register as a business?

Thanks for helping... :s

 

[kaze950]

I don't like in the UK, but here in Virginia, USA, my dad recently registered for a business. He hasn't started it yet and doesn't plan too for awhile, but he was still able to register a business for a small fee. His business is a charity for the children of the Philippines, so he is able to right off a trip he is going to the Philippines (to see how it there, hes going to be living with a friend from work's family) as a business expense.

Now, I have no idea if it works the same way in the UK, but if it does you should be able to register a business, I believe.

For your catch 22 situation, I believe you would probably have to invest money and hope that your game makes enough money to pay back your investments plus more.

 

[PeteD2S]

You don't need to invest your money in a server, if you set your own server and ask for donations for a better one. When you finally get money for 1 month or 2, buy a server and keep the donations open. Or make it p2p, either one goes.

 

[$t3v0]

I'm pretty sure you can register yourself as a sole trading business and bypass VAT. It does cost to register, but it's pretty straight forward after that. I'd be careful, though. Once a business is registered i'm not sure about other charges and you definately don't want to be in anyway wiped off the system or declared bankrupt. A failed business can affect your credit records for later life dramatically, mortgages, credit cards, loans ... they can all be affected ( I think ).

The best way to gather the information needed would be to pop into somewhere that can offer you valid information. I'm not 100% sure where, but that's obviously the best option.

On the upper hand, you can apply for a Makro/Costco cards and get huge discounts on stock. Bring on the pepsi and flumps! :D

Good luck!

~$t3v0

 

[Torik]

I have no idea how that works in the UK, but here it ain't to hard you just get a small business license.

 

[Ellie]

Once a business is registered i'm not sure about other charges and you definately don't want to be in anyway wiped off the system or declared bankrupt. A failed business can affect your credit records for later life dramatically, mortgages, credit cards, loans ... they can all be affected ( I think ).

Good luck!

~$t3v0

Does just not selling anything and making no money mean your bankrupt, or do you actually have to step into the red? I'm not planning on going into "the red" at all, so that shouldn't be a problem.

Bring on the pepsi and flumps! :D

The maker of Pepsi is a God. :yes:


That's mainly what I want to find out - the charges involved..


Also, a major point, do you have to be 18? You can legally get a job at 16, but can't sign contracts 'till 18... I'm only 16 (17 this November).

 

[Grandor]

18 is the legal age to do any form of business here in the United States. If you want to run a business you have to get someone to sign the contracts for you and then when you reach 18, you can take over for the person who signed for you. You should ask your parents if any of them would sign for you. And yeah registering for a business does cost something, but it depends on where you go to register. Some may charge a small fee, others a little more. If this whole server thing is going to be very expensive I wouldn't rely on donations because unless your game is very good no one will consider donating. What I would suggest is try to figure out how much money it would cost for the server and to run it, then figure out yearly expenses. Then get a loan for that amount, then luckily if you make a lot of money from your game business you can pay back the loan and have plenty of money for yourself. It's risky though. If you can't pay back the loan, your credit will really be fucked up.