internet international business european-union
Selling stuff online + fundraiser campaign questions (EU)
<p>Let's say I have a friend who owns a factory and makes rings and necklaces according to my unique design (1000 pieces order minimum). I want to sell them strictly online, and I'm sure that I won't be making more than $100,000/year, possibly not even $50,000/year (I don't want to open a massive store chain or something like that). I would be using Kickstarter or something similar for fundraiser to start it up. Do I need to start some sort of a company for this, or can I just sell them and pay the taxes myself by the end of the year? It would be a lot less messy if I could just accept payments using Paypal or something like that, and pay the taxes myself instead of registering a company for such a low income (for a business).</p>

<p>The transaction would go something like this: I send that friend of mine money through Paypal or Western Union or something like that, he makes for the ordered amount of rings or necklaces, he ships a box of them to me. I buy boxes to pack them in in the meantime, and when they arrive - I pack them up myself, then print out the addresses and take them to the postal office for them to be shipped to the customers when an order is placed. I know it's a lot of messing around, but I don't have much money and I doubt my campaign will be successful as I have zero social influence or presence.</p>

<p>I would prefer it to not be EU-only, I want to sell worldwide.</p>

<p>Let's also say that I live in Sweden or Norway, but I'm not a citizen here, instead I'm a citizen of Latvia.</p>

<p>In general the primary purpose of creating a single-owner business entity is to shield the owner from liability.  For example, if it turns out that (unbeknownst to you) your necklaces were manufactured with toxic metals then "you" as a seller could face ruinous liability.  If "you" is a company, then you <em>as a person</em> might lose whatever value is left in the company, but at least you wouldn't lose your personal assets.</p>

<p>There are many other potential reasons to conduct business through a business entity, and many types of business entities constructed and recognized for those purposes; but they are highly dependent on the jurisdiction, entity type, and particulars of the business.</p>
