Students can often find students opening small, temporary stores in schools to make and sell privately produced characters or other products. However, some students do not limit themselves to temporary events and continue their sales activities. Most students may not know whether they are business operators or whether their sales activities are breaking the law, even though they are selling to students rather than to the general public. Now, in preparation for the upcoming school festival and other events, the Pharos will inform you about the registration process for business operators and give you points about personal sales.

 At first, temporary sales took place at the festivals, but gradually students began to create unique characters and show off their skills. There were a lot of activities, but the most successful and famous activity was the business of selling characters that represented the school. There was a souvenir shop in the school, but many students felt sad because there were no representative items or characters of our school in the shop. Against this backdrop, the students of the club majoring in design modeled a character after the turtle, the symbol of the school, and sold items with the character such as mirrors and pouches to students. The turtle character was sensational and very popular. Such activities have gradually grown in size with students opening and selling their products regularly and creating online accounts to create various products using the turtle character. Furthermore, they said they will produce more character products with the prize money they intend to participate in the school’s "Interacting Communication Contest." Some students delivered recommendations to the club to let them know the need for the club to register as a business operator. The club responded by saying that they would register their businesses during the winter vacation because the team members were busy with their studies and activities during the fall semester. As this matter became increasingly problematic, it was discussed whether the club and other event participants should register as business operators when their intention is to make a profit. How should students view the registration of business operators?

 Let’s find out what registration as a business operator entails and think about how to look at it. Businesses are divided into two kinds: ones owned by individual business operators and juridical person businesses. The former one has easier process of registration and when it comes to budget use, there is more financial responsibility placed on users. On the other hand, the latter one requires more effort to complete the registration process and demands payment of a fee for registration. In the juridical person business, the profits from sales go to stockholders, and the responsibility of individual stockholders is proportional to how much stock each individual has. Therefore, the higher the business income is, the better it is for one to choose to register the business as a juridical person one. If there is a business income higher than 46,000,000 won, it is appropriate to choose the juridical person option.

 Then, what is the process of registration of a business operator? It is unlikely for people to register as a juridical person when they are undergraduates, so let’s focus on the individual business registration process. Registration can be done by visiting the tax office or online. It is suggested that you register at least 20 days before starting the business. The online option requires public certificates. The Pharos recommends visiting the tax office if it is the first time to register because you will be able to receive help there. Business operator registration is always necessary, even if you are opening a small business or an occasional business. Registering a business is not that demanding, so why don’t you complete the registration process if you are considering starting a business.

 Coming back to the consideration of how students should view this matter, the Pharos conducted an interview with Lee Yunkyu, a professor in the department of Tax Accounting.

Interview

When should one register as a business operator?

 Unless the business does not make any profits at all, every business is required to do it. This is like a citizen who has to register as a resident. A citizen gets every right to be involved in official procedures since he or she is registered. As resident registration guarantees social status, business operator registration guarantees the business operator the right to conduct sales activities.

Is a business operated by a club or small gathering also required to register with the tax office?

Of course. If there is even a tiny profit made by a business, it has to go through registration. However, in cases when the annual profit is under 48 million won, it is advantageous to register as a semi-business operator. 

Are there any business that are eligible for tax free status?

 Businesses such as medical, educational, and agricultural ones are typical tax free businesses. However, alcohol sales at university festivals are not eligible for this benefit. Nevertheless, if the annual profit is less than 24 million won, additional tax is not charged. Thus, I want everyone to check the regulations carefully.

Do occasional sales activities like school bars need to register as business operators for every occasion?

 If the business operator changes every time, yes, you need to register for every occasion. However, if the operator is the same, but the type of business is different, you don’t have to re-register. Only submitting a change of type of business application is necessary.

 Sales experience as an undergraduate is productive and educational. Especially for those who are considering establishing a business, this is valuable experience. However, if it is not done under legal procedure, the experience might not be the best. To learn how to operate a business while observing the dictates of the law teaches a lot of things. From the preliminary businessman to the businesses of students in the school, remember that every business situation requires certain legal procedures.

Planning Editor•KIM JIN•coo0714@naver.com

71st Reporter•PARK SINUI•dean0305@naver.com