This year I have started to make money online. I build websites and make money from them.
I have a friend/associate in India that has a Hosting company and they want me to invest money in new servers in the US so that he can sell them as hosting to people from his website.
Initial investment is about 700 euro each and then we would pay a lease on other parts of the hardware for about 2 years until we have payed it off. So initially for the first 2 years the profit would be small and when all the hardware is paid off we would make more.
The plan is that as we make money we re-invest it into more servers. And as I am Irish I can get access to a VAT ID and that means I have access to buying European servers outright instead of leasing over 2 years so I could buy them cheaper for us.
I am a Paye Employee, I do not have a company setup. I know I will need to submit returns for earnings that I am making online this year. I am re-investing some of my online earnings into this venture.
So I am pretty unsure where to go with this. Do I setup a company? Do I just pay profits on tax I earn from the hosting company? How do I protect my investment if things go bad between myself and the person in India.
I have a friend/associate in India that has a Hosting company and they want me to invest money in new servers in the US so that he can sell them as hosting to people from his website.
Initial investment is about 700 euro each and then we would pay a lease on other parts of the hardware for about 2 years until we have payed it off. So initially for the first 2 years the profit would be small and when all the hardware is paid off we would make more.
The plan is that as we make money we re-invest it into more servers. And as I am Irish I can get access to a VAT ID and that means I have access to buying European servers outright instead of leasing over 2 years so I could buy them cheaper for us.
I am a Paye Employee, I do not have a company setup. I know I will need to submit returns for earnings that I am making online this year. I am re-investing some of my online earnings into this venture.
So I am pretty unsure where to go with this. Do I setup a company? Do I just pay profits on tax I earn from the hosting company? How do I protect my investment if things go bad between myself and the person in India.