advice Which one is good to sell the domains, as individual or company?

[Hitardha Bayapuneni]

Hi,

I have so many doubts, I wish i could get answers here. I currently hold nearly 40 domains. Which i want to sell in secondary market. I have lot of doubts which i wish to clarify before i take any step.

1) As we pay every year for domain, Am i owner of the domain or am i just holder of the domain for 1 year?

2) When i say selling domain? Am i really selling the ownership (i doubt the ownership as per Q1) or just transferring the domain for that year?

3) If i am just transferring the domain, Is it comes under sales tax ? or service tax ?

4) When i complete the domain transfer, How should i calculate the profit? If i hold the domain for last 5 years paying 10$ each and hosting of 100$ per year (Hosting is common between all the domains)

5) As an individual i am already in 30% bracket of income tax. Is it good to continue to sell domains as individual ? or better to float a PVT LTD company?

6) If it is better to float a company, How do i change the ownership of me to my company? Just changing the contact information ? Or is there any procedure i have to follow?

Thanks,
Hitardha Bayapuneni

 

[Hitardha Bayapuneni]

Just for Information i am from INDIA..

 

[nvdomains]

I am not a qualified accountant.

One thing I am following - if domain was sold within 1 year of purchase, I am following domain sold price-acquisition price=income.

If It was sold after 1 year of purchase, domain sold price - renewal cost=income.

for 1 year for remaining....

All other the renewal costs+acquisition costs+other related costs = expenses.

all the ad income =income

Do not complicate thing by establishing a company - unnecessary paper work and complication.

Please take advice from your accountant - he is the right person.

 

[Suny01]

Thanks for sharing it, this is very good to sell the domains as individual organization.