A lawyer for bloggers

At one stage of scaling up and reaching a larger audience, bloggers face the question of monetization. This can be achieved through advertising, joint projects with others, or sales of their own goods or products. When monetization begins, it’s important to ensure proper registration as a sole proprietor and income declaration. Failure to legalize income can result in a number of fines, ranging from liability for conducting business without registration to an additional fine of 25% of the unpaid taxes.

If you’re looking for professional lawyers who can help you legalize income earned through blogging, you’ve come to the right place. “Prikhodko & Partners” Law Firm knows how to handle these types of requests.

Registration of a business entity

When registering as a sole proprietor, it’s important to select the correct KEAC (Key Economic Activities Classification) codes. This is essential, considering you’ll be reflecting these codes in tax returns and contracts, and operating in unregistered areas also entails penalties. This is why it’s crucial to seek the assistance of a professional tax attorney when registering, who can help you understand which key economic activities to include when registering your business.

Choosing a tax system

The tax system can be general or simplified. The general system provides for larger taxes: 18% personal income tax and 5% military tax. The unified social contribution is paid at 22% of net income (profit), but no less than the established minimum contribution.

When it comes to the simplified tax system, it’s best for bloggers to choose Group III. Group I is only available to small businesses, typically operating in rural areas, while Group II is for household consumers. Therefore, this system doesn’t allow for collaboration or profit-making from other businesses. At the same time, bloggers primarily earn income from collaborations with brands, so Group III is the preferred taxation system. It includes a single tax of 5% and a military tax of 1%. The unified social contribution (USC) is 1,760 hryvnias.

It’s also important to note that income limits must be met to remain on the simplified tax system. These limits are 1,167 minimum wages, equivalent to UAH 9,336,000. If your income exceeds this limit, you’ll have to switch to the general tax system.

Reporting

When you’re officially employed, it’s important to submit your tax returns on time. For example, if you’re a business owner under tax group III, you must file your tax return for the previous quarter by the specified date.

Our team can offer you reporting support, which will significantly simplify this part of your business’s legal routine.

Risks of not registering an LLC/sole proprietorship

Let’s look further at how representatives of the State Tax Service can find out about a violation of tax legislation on your part.

Test purchases

Tax authorities, searching online for those engaged in unregistered business activities, conduct test purchases. This is a factual audit aimed at identifying those violating current legislation governing business activity. For example, if you sell a product or provide a service, someone may order it from you, pay for it, and then use it as evidence to confirm unregistered business activity.

Tax audits and fines for unregistered business activities

Based on the aforementioned inspection by the State Tax Service, you will inevitably face fines if you started making money online without registering as a sole proprietor. The fine for unregistered entrepreneurial activity can range from 17,000 to 34,000 hryvnias. For repeat offenders, the fine can reach up to 85,000 hryvnias. Therefore, it’s much better to register as a sole proprietor to avoid legal problems. A lawyer can help you by ensuring all necessary legal steps are completed correctly.

Help from a lawyer – minimizing risks

You can contact us for the following categories of services:

1. advisory support to help you understand the legal regulations you need;
2. legal support for sole proprietorship registration and/or reporting;
3. assistance in interacting with representatives of the State Tax Service;
4. representation of your interests in court, if necessary.

Blogging is a business. Businesses need legal protection. Tax issues shouldn’t hinder your growth. If you have any problems with tax or law enforcement agencies, we recommend consulting with our attorney. For an initial consultation, please fill out the contact form on our website, and an attorney will contact you shortly.