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It's not simple though in the sense that you'll then have more ongoing paperwork to do each year for taxes and your accountancy costs will be higher (I wouldn't

It's not simple though in the sense that you'll then have more ongoing paperwork to do each year for taxes and your accountancy costs will be higher (I wouldn't recommend doing company tax filings by yourself). The OP mentioned testing an idea out so creating a company only for this might not be worth the hassle and you risk doing your taxes wrong if you're not careful.

mytailorisrich 7y ago
In my experience (UK), company tax filings are very simple if you have a solo business selling online, and not more difficult than tax filings as an individual. You have to do your accounts anyway: If you can do that you can fill a company tax return. Of course that's highly dependent on your jurisdiction. I was replying to you because you seem to be in the UK. Sometimes the hassle of wanting to avoid forming a company exceeds the hassle of forming a company (which you can use for multiple projects), which also shields you many liability issues.
- seanwilson 7y ago
  > In my experience (UK), company tax filings are very simple if you have a solo business selling online, and not more difficult than tax filings as an individual If you haven't done it before, I think it's realistically several days of work over the first year to get up to speed (e.g. dividends, payments on account, what you can expense, deadlines + fines, setting up a business account). Most of the time you'll have to do a personal tax return at a minimum and the company tax return would be on top of the personal tax return (so extra rules to learn and extra paperwork you could forget to submit during the year). I'm not saying it's impossible and you shouldn't look at forming a company, but I wouldn't call it simple in terms of time and stress, especially when you want to focus on validating a modest side project.
  - mytailorisrich 7y ago
    All the accounting you mention has to be done either way and HRMC nicely sends email reminders. The personal tax return also has to be done either way. The only thing I'm saying is that very often people with no experience are a bit afraid of forming a company as that sounds like a daunting task and it means becoming a "real business" but in fact, and I stress again depending on the jurisdiction, it may not be a big deal at all and will actually bring benefits.

mytailorisrich 7y ago

In my experience (UK), company tax filings are very simple if you have a solo business selling online, and not more difficult than tax filings as an individual. You have to do your accounts anyway: If you can do that you can fill a company tax return. Of course that's highly dependent on your jurisdiction. I was replying to you because you seem to be in the UK. Sometimes the hassle of wanting to avoid forming a company exceeds the hassle of forming a company (which you can use for multiple projects), which also shields you many liability issues.

seanwilson 7y ago
> In my experience (UK), company tax filings are very simple if you have a solo business selling online, and not more difficult than tax filings as an individual If you haven't done it before, I think it's realistically several days of work over the first year to get up to speed (e.g. dividends, payments on account, what you can expense, deadlines + fines, setting up a business account). Most of the time you'll have to do a personal tax return at a minimum and the company tax return would be on top of the personal tax return (so extra rules to learn and extra paperwork you could forget to submit during the year). I'm not saying it's impossible and you shouldn't look at forming a company, but I wouldn't call it simple in terms of time and stress, especially when you want to focus on validating a modest side project.
- mytailorisrich 7y ago
  All the accounting you mention has to be done either way and HRMC nicely sends email reminders. The personal tax return also has to be done either way. The only thing I'm saying is that very often people with no experience are a bit afraid of forming a company as that sounds like a daunting task and it means becoming a "real business" but in fact, and I stress again depending on the jurisdiction, it may not be a big deal at all and will actually bring benefits.