As a matter of fact, we don't need to be a registered company. We operate out of the UK, but our servers are in the USA; giving us the choice to operate as a 'Sole Trader' within the UK - Basically this means we can still operate as a company, but we don't need to register and we still pay our taxes. It's fully legal, I checked it out with my Lawyer. I can assure you that I'm not running Lenohost as a hobby.
Wow you really need to learn the laws of the business world. I have been a business owner for 6 years and believe me you are WRONG. When operating as a sole trader means that you are self employed and in no where means that you are legally allowed to act as a company. In order to act as a company you must register with the government as a company and they will provide you with an operating license. I am not sure where you found your lawyer but obviously he is in no way a business lawyer. When acting as a sole trader you are specifically paying taxes on your income and not a company income this is why you do not have to fill out separate tax forms for company purposes. If you are operating as a company and as a sole trader without registering with the government then you are facing sever penalties and can in fact face jail time for fraud. Before you try to school us "The Big Boys" with your incorrect business facts you should first read up on your knowledge first. Like I said I have now been a very successful business owner for 6 years and I currently own 4 LLC's in the US and Canada. Also, in your past post you have said that you are working already meaning this is a hobby for you. Anything that is outside your main source of work is classed as a hobby.
Yes but the business name still need to be registered with the government. What part of that do you not understand. You can not operate a business legally that is not registered with the government. When registering a business name with the government they make you choose an option and this is one. Wow I feel like I'm dealing with 5 year old. That's ok, ill just report your "So called business" to the BBB and let them sort this out. If your business turns up to be unregistered in there database then they will blacklist your company as they have done so now with Host Chum!
Operating under a Sole Trader means registering the business to a certain extent, but not fully registered. If you know what I mean. What do you have against me anyway? I've done nothing to put you down, or called you a scammer; I don't see a point in this.
A Sole Trade company is more like a company where your economic is your private company along with your "business" But, as a Sole Trader you cannot have employees, managers, partners etc... So in somehow your wrong either way.
Yes, you're sort of correct. There can't be more than one owner or partner, but it is possible to hire employees - Although hiring employees is a lengthy process. I admit that I don't know all the ins-and-outs of business law, that's why I consulted a lawyer before I jumped ahead with the business. He outlined everything for me, which included the advantages and disadvantages of operating under a sole trader. I'm not here to scam anyone, and I've been 100% honest so far - I know what it is like being scammed by a hosting company, and loosing all data; we're not going to be one of them hosts who do that!
Adding on to the other point, it varies onto which country the company is registered in. In the UK, you are entitled to have employees subject to the PAYE system; you collect Income Tax on behalf of your employees and add it onto your tax returns.
For future reference to all, if you get scammed of you think a business is out to scam people you may lodge a complaint at the following site: http://www.econsumer.gov/english/ . They will in fact look into the business that is if its a real business and they will figure out if the business is responsible and if they are they will be blacklisted. They will also take action through courts if they find any evidence on scamming going on through the company. The best part is, if they find the company is not registered and is not an acting business they will blacklist it and will take legal action right away. I am going to resort on them to get down to the bottom of things for me and let me know exactly what is happening here and if this person is in fact a liar.
Fair enough, you set out the website. However considering the economy crisis, the cost involved and administrative burden, it is unlikely that your case will be heard as soon as you expect. Also, if the company is not registered, it doesnt mean anything, it just means the head and mind directing the company will be personally liable for any loss incurred during his/her business activity. Your best bet is for you to go to your solicitor and seek for advise. Otherwise, in any case, you will be waiting for quite awhile to have econsumer.gov to reply.
Actually I submitted this yesterday and have already received a response, I have now redirected my lawyer to this matter and they both are now investigating this matter. You will be surprised on how quickly they responded, I was!
Wow, I am astonished by the speed they are doing their job. Well, good luck to you in whichever route you seek to take.