Set Up a Business, or Not to Set Up a Business?

L

loizenin

New member
I am a videographer for a hyperlocal news website. Over the summer I produced a series of "dish-of-the-week" videos for the site, which, although not meant to be promotional for the restaurants covered, inevitably turned out so.

I consider myself an amateur, but the positive responses to the series has got me thinking to actually doing similar projects as a side venture where establishments can show the promotional videos on their respective websites.

MY QUESTION IS, should I go ahead and register as a small business (sole proprietor) for this venture, or is it acceptable to be paid as favors, so to speak. I do not plan on doing this full time. At this moment, I just don't think it's worthwhile to deal with the legal issues involved in starting a business when I'm not sure how this endeavor will pan out.

What are your opinions and what paths have you taken?
 
I personally think that registering a small business is a good idea. Yes there are legal issues but its a good experience and motivates you to me more active with finding clients. It is also easier to get deals like this. Maybe something big will com out of it!

Well, after all it all depends on a person, does he want to be a entrepreneur or not. I personally enjoy it.

Good luck!

Kaido Veermäe
Rudolf Konimois Film video production
 
In some jurisdictions, if you register as a business, you will be assessed by the Tax Assessor. This happened to me in 1989 when I registered my (then) typesetting and graphic design business). The capital equipment tax bankrupted me and I was soon looking for another line of work. Nowadays, I avoid business registrations and anything to do with tax, as agencies share info.. after the typesetting business went tits up, I opened another media business and only got the sales tax permit. The state shared info with the town and the town came after me for tax on my business assets. Since then, I've just freelanced with no notice to any government entity. Compliance is hell. Just another angle on this situation.. think for yourself and make your own choices.
 
Thank you for the feedback! At this point in time, it does make more sense for me to just freelance without registering as a business, especially after I read basspig's post, athough that may change in the future depending on work load.
 
Anyone starting a business should always research and prepare a proper business plan. You need to know not only conditions for any market you're entering buy what are the regulatory and tax considerations through all levels of government. basspig's scenario is just one example of what happens when people go into something without proper consideration and planning. Business skills like anything else can be acquired and learned. A business plan is a roadmap for a business. In many cases a properly produced plan can indicate that your supposed great business idea isn't viable. Statistically, ninety five percent of all new businesses fail within their first five years of operation. While a large number of those fail due to undercapitalization, a lot of them fall by the wayside due to bad planning or a lack of planning.
 
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