INDIVIDUAL or BUSINESS ?

[banrigh]

Banrigh, you make very good points. This poll does apply to UK sellers only. It would be very interesting to have a poll that dissects the "I don't care" voters. "I don't care" can mean many things, and would certainly mean something different for the UK seller and USA sellers. I actually voted "I don't care" because it's not applicable to USA sellers. An "I don't care" vote by someone from the UK means something different. I can understand why someone would not vote "no" in that case.

I voted "I don't care" simply because it does not apply to me. I am not licensed as a business, but DO report my income as an individual on my State and Federal Taxes. In the US if you do have that option.

[burgyeb]

I voted "I don't care" simply because it does not apply to me. I am not licensed as a business, but DO report my income as an individual on my State and Federal Taxes. In the US if you do have that option.

This is what I do also for all of my ecommerce activity. Thank you Papagran for an interesting & thought provoking poll.

[bykimbo]

Hi Kim , ..guess that means I need to have a wee lay down again....oh well....papa.

You can wake up now, our American ebidders are taking an interest.

[shezz]

I'm not sure to the ?


But if i had a choice between buying an item from a business seller or an individual


The business will get my custom,

why

Bcause i feel more covered with my item brough from a business then a individual,

also I think I would more then likely complain to a business seller but feel sorry for an individual

[burgyeb]

My decisions to purchase from a seller are based usually on their feedback, length of time in sales, past experience with seller (very accurate descriptions, product quality & authenticity, cost, s/h, & after sale service), ability to handle large ticket sales (not intimidated by large dollar amounts - usually business.

My expectations of "a seller" do not vary from individual or business. My responses to both also do not vary. I expect professional service from both, or chances are I would not plan to do business with them.

I am willing to buy from new sellers, because we all have started with no track record. However, I expect good service from them also, and if I don't receive it, they won't have my business again. I have absolutely no problem complaining to a new seller, seasoned individual or business seller.

[banrigh]

I'm not sure to the ?


But if i had a choice between buying an item from a business seller or an individual


The business will get my custom,

why

Bcause i feel more covered with my item brough from a business then a individual,

also I think I would more then likely complain to a business seller but feel sorry for an individual

One thing you must understand when buying from sellers in the US. Not all sellers qualify to be a business and cannot report themselves as a business when filing their taxes. If you own a brick & mortar store, have employees and make over $10,000 a year, getting a business license might be in your best interests. If you do not, it would not be wise to do so. Any income received from sales are then reported as income on the individuals federal and state tax return. Tax laws are VERY different here and are not the same nationwide. So buying from a business only in the US is not a guarantee of perfect, reliable service.

[burgyeb]

A seller could opt to set up their ecommerce activity as a corporation, even if they have no net income, negative net income (as result of expenses) or no employees yet. In doing so they would be subject to reporting requirements, minimum corporate taxes, fees. Unrequired burdon not justified by the income needed to support the decision to structure as a corporation. Certainly a choice though.

[JaBek1]

I'm afraid that because of the differences in the laws of the different countries and local jurisdictions involved, this poll is somewhat pointless. It's like comparing apples to oranges to bananas to pears to grapes to passion fruit etc etc.

When I first joined eBid I questioned how I could include the business identification required under the UK Distance Selling Rules. Unfortunately, it appears that inclusion of the some of this info is in violation the eBid UA. Since I'm not located in the UK I don't really have to concern myself but it may be the reason for many UK sellers to register as individuals.

Here in the US the laws governing the conduct of business exist on a variety of levels. There are federal regulations on interstate commerce as compared to intrastate commerce not to mention regulations regarding international trading. Individual states also have laws governing the operation of businesses within their borders as do counties and cities or towns. Even some home owners associations can regulate business activities within their geographical confines.

Not only are there regulations applicable to all businesses but there are many that apply to certain types of businesses. These require special licensing and board certification to make sure that practitioners are qualified and the public is protected.

While it is entirely possible in many jurisdictions to sell your own household goods without being a licensed retailer or auction business, there are many more that see engaging in the sale of goods in an effort to profit as a business endeavor and therefore subject to licensing regulations. Of course, if you buy things to sell then you are in reality selling your own property.

The way you account for the income on your income tax return doesn't automatically define whether you are or are not a business. A doctor with his or her own practice is a business. A working family farm is a business. The mom & pop bakery on the corner is a business. So in my opinion, if you sell online with an eye to earning money from it then you are in business. So I consider anyone that sells on eBid as a business whether they are registered as one or not. That includes those that only engage in it on a seasonal, part-time or casual basis.

Dennis

[burgyeb]

The Form 1040 makes provision for individuals to report business income on a schedule C and other approriate forms. You are also able to place the business name/actvity on the schedule; non-incorporated business activity done via ss# instead of corporartion ein# (corporation tax forms).

[banrigh]

A seller could opt to set up their ecommerce activity as a corporation, even if they have no net income, negative net income (as result of expenses) or no employees yet. In doing so they would be subject to reporting requirements, minimum corporate taxes, fees. Unrequired burdon not justified by the income needed to support the decision to structure as a corporation. Certainly a choice though.

Corporations also have to have a board (president, secretary, etc.) and minutes of monthly meetings. A person could do that, but if there ever was an audit and it was found that you didn' actually meet the requirements of a corporation....you would no longer be a corporation and might face penalties. If you are a small hobby seller and operate out of your house, adding the income from your sales to the rest of your household income on your taxes is the best bet. Threre are ways around some of the laws, but if I tried it, with my luck, I would be the first one to get in trouble...lol.