If you are currently dropshipping products online, or even just managing content-based websites then you need to make sure you are reporting your activities to the Inland Revenue, if you aren’t then you are acting illegally. If you currently aren’t doing this then you may think it sounds like a lot of trouble, but fortunately it isn’t.

If you are operating on a small scale (as most of us are) then you are probably best to declare your self as a Sole Trader (self employed), even if you do a normal job in the day you can still register as a Sole Trader. This is super easy to do, all you need to do is visit the Self Employed Section of the HMRC website where you will find all the information.

Think Sole Trader Isn’t For You?
If you have larger scale plans then you may want to also look into partnerships and Limited Liability Companies. You can research into the different business formations from the HMRC website and across the web in general, lots of research is the key to coming to the right decision (as always)

Distance Selling Regulations
If your business is actively selling products online then there are a few laws you need to take note of. These include the ‘Distance Selling Regulations’, ‘Data Protection Act’ and the various forms of consumer protection legislation. There is a lot of information on this subject so instead of boring you with it all here you are best to refer the Business Link e-commerce section. It may not be fun but legal requirements never are!

For further reading check out the legal requirements post on thuk.