The purpose of this post is to look at the advantages of being incorporated in Steemit.
When you start a business, you have to incorporate your business to invoice people when they buy your stuff. It can be goods or services.
In France, you have to incorporate as soon as you are selling something. Selling in France means to be paid in euro for your goods or services.
To be incorporated, you need different things : a name, a location, a status and a bank account.
A name
A very important thing when you start a business is to find a good name, which is not copyrighted.
Is your business name available on Steemit ?
If yes, hurry up, open a Steemit account with a name for your business.
A location :
If you don't own a house you have to ask the permission of your home owner to incorporate into his apartment. Or you can use the services of a domiciliation company. But this is costing money and as a new business owner, you know that you have to keep your administrative costs as low as possible.
Being incorporated on Steemit will overcome this constrain.
A status
You have to write the status of your company. This paper will explain who are the owners, how many share of the company they each owns, where they are located and what is the purpose of the company.
You can pretty well write the status of your company and publish it on your Steemit account. This will make it clear for your customers and investors.
A bank account
This is what Steemit is offering first, a bank account. You can exchange your steem against other currencies on numerous platforms.
How to find competencies
I am sure that today if you publish a job offer on Steemit, you will find steemians that will accept to do the job being paid in steem.
What about taxes ?
They are different kind of taxes you pay when you run a business.
- Incorporated taxes : not on Steemit
- VAT ( Value Added taxes) : when you will invoice your services in Europe, you will add 20 % of VAT. VAT is only collected in euro, not in steem. Your small business will not be recognize as a real business because you are not using real money, from the point of view of the administration ; This will not stand for long for sure, but today you can pay in steem and not collecting VAT on your work.
- Taxes on profit : In Wyoming, USA, you do not pay taxes on profit, in some states of Switzerland neither. It is a good thing to avoid taxes the first years of your business, you can reinvest more into your business. Of course, after few years, my personal ethic told me that companies should participate to the social services : health, education, infrastructures, police, justice etc...Anyway you will have to incorporate into a country where you re doing business if you become too big. But you will have saved some money when you started.
- Taxes on wages : you also have to pay taxes on the wages you pay to your employees. Or your employees can open a Steemit account and you can pay them directly on their Steemit account. Holding a Steemit account may be a necessity to find a job in the future.
It is not legal to escape taxes, even if this what most large companies are doing. The purpose of this article is not to propose to you to avoid taxes, but to look at the advantages of being incorporated on Steemit.
pro-format invoice
You can describe what you will invoice in a Steemit post, it is on the block chain and nobody can erase it. You can also describe how you want to be paid, in one time, in 10 times without interest etc...indicate the date of payment.
Invoice.
The transfer of money is indicated in your wallet, so you cannot pretend that you post your check yesterday...
As you can see, there are many advantages to be incorporated in Steemit...and I already started to incorporate @solarcoach.
Maybe we can start a new business together together !