Organizing a business online
Organizing a business online
Question:
Hello!
For two months now I have been stuck in the regulatory thickets of organizing a handmade jewelry business and I can't fully orient myself. And this is an important decision - whether to start or not. For some time now I have been making jewelry from natural stones, semi-precious stones, beads, crystals and steel elements - bracelets, earrings, necklaces. I would like to turn this activity into a business, i.e. to sell them. I order the materials from which I make them from websites, and assemble them at home. The jewelry is author's, I put my own ideas and labor. I work only with base metals /I do not use silver, gold, platinum and precious stones - i.e. I do not need permission from the Ministry of Finance and do not fall within the scope of patent activity/. So far I have found interpretations for organizing this activity as an individual - a craftsman. I don't think I meet this criterion /craftsmanship/, because even though jewelry making is on the list of craft activities - "jewelry making", they are done manually and with tools, I have not completed such professional education, nor a professional course. That is, I cannot register in the Register of Craftsmen. There are exams for apprentice, journeyman, craftsman, and this is a hobby at this stage. I have already received an answer to one of my questions - I plan to register an EOOD to engage in this activity. Working as an individual is not a good option, and as an ET is even more absurd. My questions are as follows:
1. From an insurance point of view: I am the owner of another EOOD and I am insured as a SOL in it. Can I choose to pay insurance in the first EOOD, and in the second - with the jewelry, not to pay such?
2. From a tax perspective: developing this activity through an LLC, the company's accounting should be organized - should the invoices from suppliers for the materials I receive be entered into a warehouse program? Considering revenue from jewelry sales, a price for each piece of jewelry should be formed, financial statements, tax returns and possible payment of corporate tax should be prepared.
3. From a sales perspective: the jewelry will be advertised and sold through a Facebook page throughout the country. Each publication will have an explanatory text with price and photos. The jewelry will be made only to order. Contact with customers will be made by phone, message or email. The customer must provide me with their full name, phone number and delivery address, as well as the item they are ordering, but without registering in any system /there is no such system/. At this initial stage, I do not have the opportunity to buy hosting, a domain or rent someone else's and make the so-called. "electronic store" in its pure form. Is this treated as e-commerce and an e-store and does it need to be declared somewhere?
4. Do I need to have a cash register? I have studied the issue, but not completely for payment by customers by postal money order. To use a courier company that is on a licensed list and thus I am not obliged to issue a cash receipt, but I am obliged to provide the client with some document on paper or in electronic form with mandatory details. What is this document? If I have a cash register, but I make jewelry at home, what address should be declared on the fiscal receipt?
Thanks in advance!
Answer:
Hello,
We will answer your questions in order.
1. You can self-insure only on one basis. In your case, if you are the manager of two companies, you can self-insure only through one. You have the right to choose which one. i.e. you can avoid paying insurance through the jewelry company and remain insured through your current company.
2. It is appropriate to keep inventories of materials and manufactured jewelry, as well as to form the cost price of the manufactured jewelry. When the amounts are small, a warehouse may not be maintained (in reality, the law does not distinguish this in any way, but in the event of a possible inspection by the NRA, when it comes to very small turnovers that cannot noticeably "distort" the financial result, the inspectors themselves allow a method of reporting without maintaining a warehouse. There is always a risk that you will come across a stricter and stricter NRA employee.
3. Since the ordering process is not "automated" - i.e. the customer cannot enter a site through which to select given products and directly order and pay for them, then this is not an e-shop, but rather a "showroom" - i.e. a site/page on Facebook on which the products are displayed, but cannot be purchased directly from there. In this case, registration of an e-shop with the NRA is not required.
4. If you are going to use a postal money order, you are not obliged to issue a receipt and accordingly you are not obliged to have a cash register. You will have to send your client a document that describes the products, prices, your company details, payment method, delivery and payment terms, and order number.
We hope we have been useful to you!
Best regards!
