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Should i create a company or start as a sole-trader? (7)

08-08-2016 07:31 PM #1 wdeltan (AMC Alumnus)
Should i create a company or start as a sole-trader?

i haven't launched any campaigns or even signed up for the necessary software yet as i am still reading the forum. As a total beginner, would it be better to create a company to put all the money through and have everything in the company's name from the get go, or is it possible to do it under my own name and get money to/sent from my personal bank account and then set up a company later and transfer everything to it?

Are the other companies you interact with only interested in dealing with companies and not interested in dealing with Mr John Smith?

i wasn't planning on starting AM until September which gives me time to organise a company so the time factor doesn't affect me, just interested in best practice.

08-08-2016 07:49 PM #2 matuloo (Legendary Moderator)

In theory, you can do this as Mr John Smith, BUT ...

- some ad networks will charge you VAT - those from EU, so you are instantly about -20% ROI
- not sure about the GEO you are in, but you are basically required to operate as a company by law when generating profit and do the required accounting
- you will probably have less problems when applying for aff networks

If you want to do this the right way, you should get a company.

To stay fair, of course there are many people who start as individuals and only incorporate once they start to see some profits.

08-09-2016 11:53 AM #3 wdeltan (AMC Alumnus)

i was going to open a company in HK when i return to Asia, as i am going to use the company for another purpose too. i've read the HK business threads here and also elsewhere on the net.

i'm not pressured time wise to start making campaigns, so i can study more while the business process completes.

Thanks for your answer, i hadn't thought about VAT. i'm british so i would have to pay it if i was going through my UK address. i hadn't considered that having been in Asia for so long.

08-09-2016 12:43 PM #4 matuloo (Legendary Moderator)

Quote Originally Posted by wdeltan View Post
Thanks for your answer, i hadn't thought about VAT. i'm british so i would have to pay it if i was going through my UK address. i hadn't considered that having been in Asia for so long.
Yup, it's easy to forget about the VAT aspect, but it would be a major pain in the ass to have to pay it.

08-09-2016 01:22 PM #5 thuglife (Member)

Don't overthink this part of the business, put all your effort and the money you were going to spend registering a company etc into launching as many campaigns as fast as possible to generate a profit.

Making money is usually the hardest part, keep in mind that 99.9% of affiliates give up after 1-2 months.

08-09-2016 03:00 PM #6 cmdeal (Veteran Member)

Quote Originally Posted by matuloo View Post
In theory, you can do this as Mr John Smith, BUT ...

- some ad networks will charge you VAT - those from EU, so you are instantly about -20% ROI
- not sure about the GEO you are in, but you are basically required to operate as a company by law when generating profit and do the required accounting
- you will probably have less problems when applying for aff networks

If you want to do this the right way, you should get a company.
Listen to matuloo!

09-23-2016 01:47 AM #7 chris_aceves96 (Member)

So is it best to just start running campaigns and worry about incorporating later down the road ?

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