If running an on-line business, is it necessary to have an office guests can access?

[mary]

Hi there,
If I were to set up an online business, for example something like website building, would I need an office which the customers can visit?
I realise that a physical address must be given on websites that sell goods, but can that be from my own front room (which customers cannot visit)?
Thanks!

[TIS]

It can be a post box. You only need to have a registered address, there is no requirement that people can visit you, simply that any official post e.g. from hacienda or ayuntamiento can be sent to etc. If you use your residentail address you still don't need to allow the public in. If you did you'll need business public liability insurance

[mary]

Mornng TIS,
Many thanks for the reply and the good news that goes with it.
It was mentioned that I might have to have an office, so I'm really pleased that is not the case

Now I just need to sort out this knotty problem of social securty. If only it were that easy!
I know I can generate some income which will just bring me into the realms of a living wage - but since I'm 58 years old, nearly 300€ a month in SS is going to be so hard.

[ribuck]

Mary, you certainly don't need an office. If a client ever needs to meet you in person, you can go to their place instead of them going to yours. But if you don't have an office or a PO Box, your home address will appear on some documents.

The SS payment is a real hurdle for new businesses. Here's an idea, which may be workable. For the first few months, tell the clients that you will bill them in, say, July 2013. They may appreciate the extra use of their working capital in the meantime. Then, when July 2013 comes, you can open your business fully, start sending out bills, and pay SS. By then you will know whether you will have at least 300€ per month coming in.

[mary]

Many thanks for that thought Ribuck, much appreciated. I'm sure that would be a good idea in many cases, especially at the start while it takes a while for business to build up.
It seems to be though that you either have to generate quite a lot of income to cover the SS - or not work at all. Oh where, where is the middle ground?!

[Balcony]

If you don't have a place of business i.e. office/shop, the safest thing is to have a postal box no. You really don't want customers visiting your home.

[mary]

That's a good point. As long as it doesn't put customers off, the fact that it's a PO Box rather than an address.

[TIS]

Mary, you certainly don't need an office. If a client ever needs to meet you in person, you can go to their place instead of them going to yours. But if you don't have an office or a PO Box, your home address will appear on some documents.

The SS payment is a real hurdle for new businesses. Here's an idea, which may be workable. For the first few months, tell the clients that you will bill them in, say, July 2013. They may appreciate the extra use of their working capital in the meantime. Then, when July 2013 comes, you can open your business fully, start sending out bills, and pay SS. By then you will know whether you will have at least 300€ per month coming in.
Repectfully I'd say this is a recipe for disaster. So many will not have the funds to pay you x months down the road. BE careful.

[LilyC]

Repectfully I'd say this is a recipe for disaster. So many will not have the funds to pay you x months down the road. BE careful.

Totally agree. I always have people pay in advance. And even them some payments bounce. Luckily this happens very rarely. But I don't really know how often it would happen if they paid months after the goods / service was delivered! Not a risk I would be willing to take.

[Greg]

do you have a Uk address? Or one you can use? Why do you need to have your company based here if it it web based? Why pay SS here? If you are still a Uk resident why not base your online company there and meet your clients at their place of business here. You really do not want to get on the SS treadmill here. You lose alot and gain nothing.

[chocaholic]

If you spend more than 183 days here in Tenerife then you are a Spanish resident and must pay tax here. there is now ay round the ss crazy payments wish there was.,

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If you spend more than 183 days here in Tenerife then you are a Spanish resident and must pay tax here. there is now ay round the ss crazy payments wish there was.,

[Tom & Sharon]

If you spend more than 183 days here in Tenerife then you are a Spanish resident and must pay tax here. there is now ay round the ss crazy payments wish there was.,

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If you spend more than 183 days here in Tenerife then you are a Spanish resident and must pay tax here. there is now ay round the ss crazy payments wish there was.,

That's not true, your fiscal residency, which is different to having a residencia is much more complicated than that to determine.

Golden maniac is the expert............

- - - - - - - - - - merged double post - - - - - - - - - -


If you spend more than 183 days here in Tenerife then you are a Spanish resident and must pay tax here. there is now ay round the ss crazy payments wish there was.,

- - - - - - - - - - merged double post - - - - - - - - - -

If you spend more than 183 days here in Tenerife then you are a Spanish resident and must pay tax here. there is now ay round the ss crazy payments wish there was.,

That's not true, your fiscal residency, which is different to having a residencia is much more complicated than that to determine.

Golden maniac is the expert............

[chocaholic]

I understood that to be fiscal residency as well

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I understood that to be fiscal residency as well

[Tom & Sharon]

I understood that to be fiscal residency as well

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I understood that to be fiscal residency as well

No, it's different.

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I understood that to be fiscal residency as well

- - - - - - - - - - merged double post - - - - - - - - - -

I understood that to be fiscal residency as well

No, it's different.