Legal Structure & Licenses and Taxes

Legal Structure & Licenses and Taxes

Legalizing the Business and Launching the Website | BYU-I B 250 – Lesson 06

What an exciting week this was. At least the part where we should launch the website.

I say that, because I felt the first part was very tiresome, almost boring. I understand how vital that is though. Every business must be well structure and in order with our government’s laws and requirements. I felt a little out of place again, because my reality is really very different than the reality in the USA, and thus the discussion on the classe’s discussion boards were very far from my reality too.

About deciding on a Legal Structure: I will not be able of formalizing a company for my online store. The taxes, fees and bureaucracy for opening a company (with CNPJ – a company social security number in Brazil) are outrageous. I would need to have at least R$ 1500,00 if I wanted to have a company formalized. It would take longer than the course, for the process to be completed. And I would need to hire an accountant to do the job for. I can’t afford to do it, not for the sake of the course’s purpose.

I will use my own CPF (social security number) for selling in my website then. It’s something very common in Brazil. I will still need to register at the mayor hall for producing invoices for my clients. There are some limitations in this structure. The most relevant is that I will not be allowed to sell more than RS 60.000,00 within a period of 365 days (a year). But I don’t think I would be able to sell that much anyway.

About the taxes I will need to pay, they are very simple and straightforward. I will need to pay 8% of the price of the products to the government. I will also need to pay a fixed fee of R$ 0,40 plus 3.99% of the price of the every product I sell. This will be paid to the Credit Card company service. I chose to use PagSeguro, by the way.

Launching the Website

I loved the philosophy that this course proposed right in the beginning: “ready, shoot, aim”. We are already launching our website, we are shooting before finishing to aim.

I am sure my website is not quite ready yet. For once, I only have 3 products there yet (I will only have about 5 of them anyway). I also want to improve the design and setup some plugins yet. But the website is already functional. A person could literally already go there and purchase a product already.

I was able to setup PagSeguro so my clients can use their credit cards to pay for their purchases.

I am very happy and excited, but I am also a little apprehensive. Although I am not spending too much money, I am spending some money. I really hope I can sell enough to at least pay for the initial investment.

Let’s keep working in order for the website to receive enough interested clients to buy some products.

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