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Geek Culture / Registering a Company?

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code master
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Joined: 4th Dec 2003
Location: Illinois
Posted: 11th May 2006 16:02
I've got products to sell, I've got a user base, and I'm trying to figure out what I need to do to make my 'Company' an actual company. Do I register with somebody? What does incorperating do? What sort of reqirements are there?

Weapon Creator EA for sale soon.
http://wc.out-lawz.com
John Y
Synergy Editor Developer
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Location: UK
Posted: 11th May 2006 16:25
http://www.spiegelutrera.co.uk/index.html

But, don't forget, it's not cheap running a company, only do it if you know that you are going to make a profit.

indi
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Location: Earth, Brisbane, Australia
Posted: 11th May 2006 16:44
In Australia, you can start as a sole trader.
This is a much cheaper solution to starting a company.
It basically means 1 or two people, usually one starting a small business trading with your own name or a commerce name.

The problem with this is all your assets are liable if someone sues you, even your dirty socks.

You probably have something similar in the windy city where you live.

A company requires at least $1000 to start in Australia.
You can buy a company that someone else started and scrapped, you do however incurr the costs of that companies history. This is called a shelf company.

You need a Financial controller or accountant to start a company as well as a director.
You wont be able to afford an accountant when first starting out.

I would imagine your just a young dude, start with a sole trader if you have them in your country, establishing a company is a waist of time until you start to make a $50k+ profit a year, look up your countries rules governing this aspect.

A company is like an entity or person, the company can own assets like a person, and when the company is folded or sued, the assets of the company are liquidated first, sometimes they also seize your own assets if you are accused of malpractice etc..

Once your company gets really large you can float it on the public market and start offering shares. this usually leads to the demise of your control as you will find there are more people interested in squeezing money from your idea/company.

now that the reality has set in, go back to your project and think real hard about your next step.

If no-one gives your an answer to a question you have asked, consider:- Is your question clear.- Did you ask nicely.- Are you showing any effort to solve the problem yourself 
BatVink
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21
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Joined: 4th Apr 2003
Location: Gods own County, UK
Posted: 11th May 2006 17:01
As your location is "none of u biz", we can't help I'm afraid.



Tachyon
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Location: four-momentum imaginary proper time
Posted: 11th May 2006 17:06 Edited at: 11th May 2006 17:10
What about moving here? (Finland)
Our goverment really supports new companies.

Here you dont have to pay anything to start company, if you would like to register it (it's almost a must), it's just 65 euros. (thats about 45£ and 75$, correct?). Registering a logo cost just as few money.
You dont have to pay taxes if you dont make any or low income. The 22% tax to the prize of the product is added only if the years sales go over 8000 euros.
The best thing is that you get a "starting money" which is around 1000 euros. That's free, you dont have to pay it back. But that requires that you really run the company some time, and it may require some other things to be proven. You may also get a free support money from your city in order to hire a summer worker.

Crazy country isn't it?
But this is just some not so conspiracy theory to get more tax income, Im not sure if it works better than Australias model.

EDIT: Just out of curiosity, how many percent of US or UKs companies are "micro-companies" (not small, but really micro), in finland, that ammount is 93% of all companies.

code master
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Location: Illinois
Posted: 11th May 2006 17:12
@John y and Indi

thanks for the info.

@ BatVink

I live in Illinois.

Weapon Creator EA for sale soon.
http://wc.out-lawz.com
CattleRustler
Retired Moderator
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Location: case modding at overclock.net
Posted: 11th May 2006 17:17
look into "LLC"
Limited Liability Corp

Ron Erickson
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Location: Pittsburgh, PA, USA
Posted: 11th May 2006 17:59
code master,

I am located in Pennsylvania and have been looking into the same thing. You really have to look into your state law, although I imagine that they are all pretty similar. In PA, you can set up as a sole-proprieter. You really don't have to do anything to start the business unless you want to associate a ficticious name with it (meaning if the business name does not contain your Last Name, then you must register a ficticious name for it). That costs around $70-$80. You must also fill out forms to charge sales tax to people located in your state that purchase your products. At the end of the year, when you do your taxes, you just count the total sales value as earned income. Where that can get complicated is with all of the deductions that you can take for having a "home-office" and operating costs.
Your state could work things a little different, but I bet they are the same for the most part.
Good luck!

WOLF

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David R
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Location: 3.14
Posted: 11th May 2006 18:32 Edited at: 11th May 2006 18:36
If you're in the UK, go here to register a company:

http://www.companieshouse.gov.uk/

I recommend against using the agency site that John Y pointed you to. Yes, it will do what you want, but it is an agency - it will simply take your details and do the respective stuff to register a company, making it easier, but more expensive for you. Just go the companies registrar for your country yourself, and it'll be much much cheaper.

[EDIT]: Sorry, I missed that you were in the US

Quote: "Why would anyone spend that kind of money on rubber jewellery? - Phaelax"
Jeff Miller
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Location: New Jersey, USA
Posted: 11th May 2006 18:41
Since you are in Illinois, info is available here:

http://www.cyberdriveillinois.com/departments/business_services/publications_and_forms/home.html
John Y
Synergy Editor Developer
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Posted: 11th May 2006 19:42
David R,

My link is not an agency, it is a solictors, which specialise in company incorporation. They know what they are doing, and provide you with top class legal advice, something that you would be hard to come by doing it yourself; and for £29.99, you shouldn't really argue.

code master,

The company link I provided also have offices all over the US. Infact, they are American.

PowerSoft
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Location: United Kingdom
Posted: 11th May 2006 19:50 Edited at: 11th May 2006 19:55
Quote: "But, don't forget, it's not cheap running a company, only do it if you know that you are going to make a profit."


Sorry John but that's not 100% correct. Only consider doing it if you are pretty certain you are going to survive, there is a difference.

Also consider the type of business. I'm not sure as of your geographic location but in the UK there are different forms of liability.

Unlimited liability (thats sole traders and partnerships) consists of if the 'company' goes into debt and the 'company' can't afford to pay them off you'll find it coming out of your pocket...not good. A sole trader (you more than likely) has full decision, naturally, but only really has the money you put into it. A partnership has the advantage of more capital (money, cash, assets etc) going into the business but has the factor there are two/twenty people making the decisions, not just one.

Limited liability (thats PLC's and LTD's)
these companies have limited liability and means you won't have people coming to claim your house if you go into debt The major difference is these cost a fair bit to setup. They are also different on the way they work with their shares...


But remember not every business sets out to make a profit.

Also there are certain acrticles etc that need to be completed. Articles of Association, Memorandum of Association and other laws to protect the minions you employ.


Ok business studies lesson over, homework handed in next lesson


Cheers,
Rich

John Y
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Posted: 11th May 2006 19:57
Quote: "Sorry John but that's not 100% correct. Only consider doing it if you are pretty certain you are going to survive, there is a difference."


Nope, I have a business studies degree. I would not make a business to just survive, I am damn sure I would want to get something out of it.

David R
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Posted: 11th May 2006 19:59
Quote: "My link is not an agency, it is a solictors, which specialise in company incorporation. They know what they are doing, and provide you with top class legal advice, something that you would be hard to come by doing it yourself; and for £29.99, you shouldn't really argue.
"


Its effectively an agency. Yes, they may solicit, but most 'proper' solicitors would not offer shrink-wrapped products, they would offer consultation. That's why I said it was an 'agency' as such.

Besides, you do not need a solicitor to start a company, nor do you need legal advice. The forms which will be provided by your country or province of residence will provide all the legal information you need. You just need to be certain you're making the right descisions, which usually isn't difficult.

Quote: "Why would anyone spend that kind of money on rubber jewellery? - Phaelax"
PowerSoft
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Posted: 11th May 2006 20:03
I see what you're saying but...
...your main target is going to be to survive and have enough working capital/ol to do that. I agree it's best if your going to make a profit but it's not always the situation, any profit you make is a pleasantry.

Going into business to make a quick buck, a quick profit may be good but without planning to survive recessions, without doing P&L accounts, cashflows, and break-even analysis your preparing to mess up at some point.

John Y
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Posted: 11th May 2006 20:52
You both make interesting points, but it comes down to what you learn in your GCSE's, and the real world. When you start your own company, and rely on it, things become a lot more important. When you can be fined for not correctly filling in your paperwork, and when your next sale is needed to pay your staff you don't mess around.

Of course, with the code master, and other people 'doing business as', some of these things aren't that important. But, you have still got to pay an accountant every year, fill in correct tax returns, and abide by all of the laws.

Matt Rock
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Location: Binghamton NY USA
Posted: 12th May 2006 00:04 Edited at: 12th May 2006 00:05
1. Decide on the name of your company, and make sure there aren't other companies in your area or globally with the same name
2. Decide on a business structure. In a nutshell, they are:
Sole Proprietorship: You own the business yourself and you take full responsibility for profits and losses
Partnership: 2+ people own the business and divide the responsibilities evenly
Limited Liability Partnership (LTD): 2+ people own the business with 1+ silent partner(s) who provide funds but the silent partners DO NOT partake in the risk
Corporation: You trade shares of your company to the public so that lots of people own your company but you don't. Not the best choice in our industry, because if you were to ever make it big and work with a company like EA, they could buy your company right out from underneath you. And before anyone says "No, that won't happen!" think about Maxis, Digital Illusions, Dice, Redwood... do I need to keep naming them? hehe

3. Register your company with your local town or city clerk, or if you're in a bigger city like New York, do it with the Comptroller (no, I didn't misspell that lol)


"In an interstellar burst, I'm back to save the universe"
code master
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Posted: 12th May 2006 03:07
Thanks for all the information.

Now, I have to digest this all...

Weapon Creator EA for sale soon.
http://wc.out-lawz.com
Jeku
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Location: Vancouver, British Columbia, Canada
Posted: 12th May 2006 03:39
Quote: "I agree it's best if your going to make a profit but it's not always the situation, any profit you make is a pleasantry."


Um--- who, aside from "non-profit organizations" goes into business to not make a profit? That's a dream world. You need to pay bills, eat, etc.

Pleasantry? That's the entire point of running a business, is it not?

indi
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Location: Earth, Brisbane, Australia
Posted: 12th May 2006 03:44
its not so black and white jeku,

You can start two companies and run one at a loss, then change the assets to avoid ceratin taxes.
Also if you have two companies you can source work from one to the other and in turn gain more tax advantages.

it is legit. its the way of the fatcat.

If no-one gives your an answer to a question you have asked, consider:- Is your question clear.- Did you ask nicely.- Are you showing any effort to solve the problem yourself 
Matt Rock
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Posted: 12th May 2006 03:47
Whoever said the way of the fatcat was the right way, hehe

I agree with Jeku here, I don't understand why you'd want to purposefully run a company into the ground


"In an interstellar burst, I'm back to save the universe"
Jeku
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Posted: 12th May 2006 03:47
Hehehe... just shows how much I slept during my business courses

indi
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Location: Earth, Brisbane, Australia
Posted: 12th May 2006 03:52
lol i mean meow

If no-one gives your an answer to a question you have asked, consider:- Is your question clear.- Did you ask nicely.- Are you showing any effort to solve the problem yourself 

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