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Taxes and Business Structure
Andrew avatar
Written by Andrew
Updated over a year ago

Set up taxes

As a business providing services, you must collect taxes to send to the government every time someone makes a payment to you. There are some exceptions, for example, for digital goods in many jurisdictions.

For automatic processing of most tax calculations, use third-party software in your country. Ask other entrepreneurs and a tax consultant which software would suit you. None of this should be taken as tax advice, and you should consult with a tax specialist if you are unsure about your tax situation. Dating Pro does not register or remit sales taxes on your behalf.

Choose a business structure

Now you've finished all the exciting stuff with launching an online dating service: choosing a name, creating a website, finding the first profiles, defining profile descriptions. But before you launch, you want to legalize your new business. Registering your business is mandatory.

A legal entity recognized by the government also protects your personal assets if something goes wrong.

This will also help you:

  • Potentially get a lower tax bill

  • Easier provision of business financing

  • Creation of pension plans

  • Separate your credit rating from your personal rating

Common business structures for new business owners include:

  • Sole proprietorship. A non-corporate business with no legal distinction between the company and the person managing it. It qualifies as a non-employer business and is the simplest to set up and manage. About 40% of small business owners have a non-employer business as their primary source of income.

  • Partnership. A partnership is a single business with two or more owners. Each owner contributes to the business with funding, property, labor, or skills. Partners share responsibility and profits.

  • Limited Liability Company (LLC). An LLC is a hybrid business structure that combines a partnership with the liability protection characteristic of corporations."

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