Are You An Ebay Trader

Thousands turn to ebay to daily make extra cash, sell unwanted gifts, sell other items and services or even grab a few bargains. Many know that if they're short of cash they can turn to eBay and easily convert an item their selling into cash.

However, if your using eBay like this on a regular basis you may be qualified as a trader. Recently the Inland Revenue have issued a statement to find out if you are qualify as a trader.

If you are deliberately buying a product to sell on at profit it makes you a trader and liable to declare it. It's that simple.

Selling your own good and items, does not make you a trader - unless you've purchased them purely to resell. It's the same with friends, if you are reselling them on behalf of a friend or colleague you are not a trader UNLESS you yourself are making a profit on the items.

It's easy to kid yourself, telling your not a trader because your only making a small profit but the Inland Revenue (in the UK) are known to have their eye on eBay. It wouldn't be hard for them to find out exactly how much you were making. After all ebay and paypal store all your history electronically. None of it gets hidden.

If you do decide to declare any eBay income, eBay will allow you to register as a business and you can also reclaim business expenses. It's not all bad and you may end up saving money in the long term.

The choice is yours to decide whether or not your classed as an eBay trader.

Written by Mark Kenny. Join http://www.AuctionCUT.com - the online auctions and ebay forum. Come and discuss your eBay or online auction goals, with Mark and other members. AuctionCUT offers adrevenue sharing for members and an exclusive dropshipping report. This article contains no legal advice and you should consult an accountant or solicitor for advice before acting. Article Source: http://EzineArticles.com/?expert=Mark_Kenny

Running a Business As a Sole Trader

Running a business as a sole trader can be flexible, cost effective and administratively less burdensome than other business forms. However there are some factors you need to consider day to day when running a small business as a sole trader, and in particular whether some other business form would be more appropriate in your particular circumstances.

Doing business as one inevitably carries connotations of a lack of professionalism and credibility, born from the impression that many such businesses are run from the 'back bedroom', and are consequently incapable of providing quality goods and services.

Convincing large companies to deal with a sole trader is much more difficult than it might be with other business structures, and while that prejudice may not be merited, it is nevertheless persistent.

A good way around this is to use a trading name for your business to give the impression of a more professional organisation, or to brand in your own name as if you were branding a business. Both of these techniques can divert much of the ill-feeling and distrust associated with sole traders as opposed to other business structures.

Running a small business as a sole trader also has risks associated with it as compared to other business formats. As a sole trader, you are ultimately responsible for all the debts of your small business, and your personal assets will be at risk if your business is unable to repay its debts. Thus, there is an obvious risk associated with running a small business as a sole trader, and this is one of the main reasons some opt for alternative structures.

However, by making calculated financial decisions and not borrowing beyond your means, the sole trade model can be a flexible, suitable alternative to many of the more formal arrangements without compromising your personal wealth. While the risks remain, making sure you are aware of your market and your physical payment capabilities, this should prevent your business from running into serious financial difficulties.

Running a small business as a sole trader is a great way to start off in business, and can even be a good way to run much larger operations in certain industries. However it's certainly not without its problems, from unlimited liability through to credibility issues, which can often hold back the progress of any new business.

Naz Daud is the founder of CityLocal. This Franchise Opportunity is for people who would like to work from home and be their own boss. UK Business Franchises Business Franchise Opportunities Copyright information: This article is free for reproduction but must be reproduced in its entirety, including live links & this copyright statement must be included. Article Source: http://EzineArticles.com/?expert=Nazir_Daud