When you’re buying yourself a portfolio of websites, or building websites for yourself or others, it’s easy to try and over-complicate things. A common question Liz and I are asked is whether you need to have a company structure setup before you start buying and selling websites.
I think it’s an important question to address, because we find that students sometimes use this as a road-block to getting started earning income in the online business space.
So to help clear the air and get you moving forward, I chat with leading online law expert, Jeanette Jifkins to discuss what type of corporate structure may be best when building and buying websites.
CLICK ON THE VIDEO BELOW to hear from Jeanette Jifkins – Should I set up a company to buy websites?
Matt Raad: Hi it’s Matt Raad here, and today I’m with Jeanette Jifkins from Onyx Legal.
We’ve invited Jeanette because she’s a legend in all things to do with online law. And one of the questions I wanted to ask is, when people are starting out buying and selling websites (or getting online for the first time), do they need a corporate structure? How do they do it from a structured point of view?
Do I need a Company to start my online business?
Jeanette: You don’t need a corporate structure. When you’re starting out a business, really what you want to do is work out whether this is something you’re going to keep doing or not. You just need to get in and have a go and get your hands dirty. And setting up a corporate structure is just a distraction at that point.
You don’t need to over-complicate things. You can get set up as a sole trader, and you don’t even have to set up as a business to start with. You can simply start out buying websites as an individual. And just have a go.
Matt: Yes. So can you just have a go (at buying websites) in your own name when you first start out?
Jeanette: You can, absolutely.
Re-assess your structure as your online business grows
Matt: And then presumably, as you get bigger and bigger, then you might want to talk to someone like yourself about do we need to set up an actual company structure, or a trading structure of some kind to buy websites?
Jeanette: When you start getting serious or you’re making more money than you feel you can afford to lose. All those are tipping points where you suddenly say, “Hey, this is actually working”. That’s when you look at it and figure out what structure you need to take.
Matt: Perfect. Thank you, Jeanette!
On a similar topic, you may also find this article about whether you need an ABN to buy websites a useful resource, well worth the read.
If you would like legal advice around buying websites and the corporate structures that may be best for you, then you can contact Jeanette at Onyx Online Law – let her know you read the interview with Matt Raad on Do You Need a Company To Buy Websites.