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Subject:
How do I get my company to be legally recognized?
Category: Business and Money > Small Businesses Asked by: garyking-ga List Price: $2.00 |
Posted:
16 Feb 2005 15:03 PST
Expires: 18 Mar 2005 15:03 PST Question ID: 475681 |
How do I get my company to be legally recognized? I have a website ( www.vbpros.net ) which is my 'company', but not in a legal manner. How can I get it to be my 'actual', 'legal' company? And, do I get any extra benefits? Basically, right now it is just a website where I conduct business through. All my business is online, so it all goes through the website or directly to me, online (through email, or IM, or phone.) Thanks in advance! |
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There is no answer at this time. |
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Subject:
Re: How do I get my company to be legally recognized?
From: ipfan-ga on 16 Feb 2005 15:48 PST |
Gary, You are located in Canada, correct? I presume Canadian laws in this regard are fairly similar to US laws. Under US law, at the moment you re a "sole proprietorship." In other words, you and the business you run at abpros.net are one in the same. It's revenue is your revenue, its expenses are your personal expenses, and so on. So in that sense you are a business. You could set up a separate checking account for this sole proprietorship and in the US you can (and in fact are required) to file what is known as a DBA certificate or a Certificate of Assumed or Fictitious Business Name. This is to let the world, and especially your creditors, know that when they are doing business with vbpros.net, they are actually doing business with Gary King. If you want, you can certainly adopt a more formal business structure, like a corporation or a limited liability company. I am sure a Researcher versed in Canadian corporate law can assist you with advice on how to do that under provincial law. In general, there are some tax benefits and some liability limitation benefits that arise from more formally organizing your business, but depending on what you do and how much money you make, you may not need to ever be more than a sole proprietorship. |
Subject:
Re: How do I get my company to be legally recognized?
From: garyking-ga on 17 Feb 2005 13:11 PST |
Okay, thanks! And also, yes, I am located in Canada. Also, but wouldn't registering my company protect me better as well? Just curious as to all of this, thanks again! |
Subject:
Re: How do I get my company to be legally recognized?
From: ipfan-ga on 17 Feb 2005 13:36 PST |
You ask: "wouldn't registering my company protect me better as well?" Yes, if you adopt a form of limited liability entity like a corporation or a limited liability company. Those are called "limited liability entities" because they stand as a barrier between your personal assets and the outside world, to the extent the bad act from which you seek protection was committed by your company and not by you acting as an individual. But do you need a limited liability entity? Most of the world's small businesses run as sole proprietorships simply because what they do does not create enough potential liability to warrant the time and expense of setting up the entity and maintaining it. For example, if your business is to make and sell small crocheted butterflies out of organic thread and dyes, I think it is unlikely you are going to get sued. On the other hand, if your business is to apply mercury vapor and lead-based paint using a high velocity air gun in nursing homes, then yes, you'd better form a limited liability entity behind which you can hide your personal assets. You see, as a sole proprietor, your assets are the company's assets, and if one of those nursing home residents sues your business for personal injuries caused by the paint, the "business" is you, and your personal cars, homes, checking accounts, whatever can be used to satisfy the judgment. If, however, you have, e.g., a corporation and it is the corporate business that applied the paint, it is the corporation that must be sued, and your personal summer home in Saskatchewan is not subject to the judgment (assuming you keep your corporate nose clean and don't do anything that would permit a plaintiff to pierce the corporate veil, as it's called). |
Subject:
Re: How do I get my company to be legally recognized?
From: garyking-ga on 22 Feb 2005 14:38 PST |
In the situation that I am in right now, can I technically tell someone else that I have 'my own company'? Or legally, as well? |
Subject:
Re: How do I get my company to be legally recognized?
From: ipfan-ga on 22 Feb 2005 15:34 PST |
I think that is fine, since technically and legally you do have your own company, a sole proprietorship called vbpros.net. But I would double check provincial law to make sure there is no requirement that you file what in the States is called a Certificate of Assumed or Fictitious Business Name, also known as a "D.B.A. ("Doing Business As") Certificate." If there is such a requirement, you should file that document before you hold yourself out as "a business" or "a company." So assuming there is such a requirement and further assuming you file such a form, thereafter you may legally hold yourself out as, "Gary King, d.b.a. vbpros.net." If there is no such filing requirement, then right now you are legally "Gary King, d.b.a. vbpros.net." That is how you would, e.g., apply for a business bank account--that is the name the account would be in. For business cards or whatever, you can say, "Gary King, Owner, vbpros.net." |
Subject:
Re: How do I get my company to be legally recognized?
From: garyking-ga on 22 Feb 2005 17:18 PST |
If, like you said, I used ""Gary King, Owner, vbpros.net." on business cards, then do I still need to get a d.b.a. certificate? |
Subject:
Re: How do I get my company to be legally recognized?
From: ipfan-ga on 23 Feb 2005 08:38 PST |
Only if the laws of the province in which you live require you to file a dba certificate before you commence business as a sole proprietorship. You need to check with a lawyer now. There is no legal difference between saying "Gary King, d.b.a. vbpros.net." and, "Gary King, Owner, vbpros.net." They both mean the same thing: "Gary King = vbpros.net." One is just less formal-sounding than the other IMHO. In both cases you are holding yourself out as a business. The issue of whether you have to file a dba certificate depends strictly on your local laws, not on how you hold yourself out or how you advertise or anything else. Talk to a lawyer and see if you have a dba filing requirement in your province or city. Technically speaking, right now you ARE a sole proprietorship. The only issue is whether you local laws require you to make a dba fling before continuing in business as a sole proprietorship. |
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