Do I have to register my YouTube channel as a business?
March 17, 2024 | 50,00 EUR | answered by Edith Fischer
Dear Media Law Attorney,
I have been running a YouTube channel for some time now, where I regularly post videos on various topics. So far, I have not generated any income from my channel as I do not yet use any partner programs or similar. However, I have recently received an increasing number of inquiries from companies that would like to collaborate with me and offer me compensation for it.
My question now is whether I need to register my YouTube channel as a business once I start cooperating with companies and earning income. I have already researched and read that it depends on whether I primarily operate my channel for commercial reasons or not. However, since I also create videos for fun and passion and have not made any profits so far, I am unsure if I suddenly have to register my hobby as a business.
I am concerned that I may face legal consequences if I earn income from my YouTube activities without having registered a business. Is there a way for me to continue operating my channel as a hobby and still collaborate with companies without having to register a business? What specific steps do I need to take now to ensure that I am legally compliant?
I would appreciate your professional assessment and possible solutions to my situation.
Sincerely,
Sophia Schröter
Dear Mrs. Schröter,
Thank you for your inquiry regarding the legal situation of your YouTube channel in relation to a possible business registration. It is understandable that you are concerned about how to continue collaborating with companies without having to fear legal consequences.
First and foremost, it is important to clarify when exactly an activity is considered a business. According to German law, an activity is considered commercial when it is carried out independently, regularly, and with the intention of making a profit. In your case, you operate your YouTube channel for fun and passion and have not made any profits so far. This suggests that it is more of a private activity rather than a commercial one.
However, the situation changes once you start collaborating with companies and make income as a result. If you receive compensation for your videos, this can be interpreted as an intention to make a profit, even if you primarily operate your channel for fun. In this case, there is a risk that your activity will be classified as commercial and you will be required to register a business.
There is a way to continue operating your channel as a hobby and still collaborate with companies without having to register a business. This is possible if you declare the income from the collaborations as income from self-employment in your tax return. You should make sure to correctly declare and pay taxes on all income in your tax return.
To be legally safe, I recommend that you consult a tax advisor or a specialized attorney in media law. An expert can provide you with more detailed information regarding the tax and legal consequences and offer you individual solutions.
I hope this information was helpful to you. If you have any further questions, please feel free to contact me.
Best regards,
Edith Fischer
Attorney specializing in media law
