⚖️ Legal and Taxes
A practical overview for solo workers, teams, and businesses using GoTips — covering contracts, taxes, and compliance basics.
👤 For solo workers (freelancers, drivers, barbers, etc.)
Section titled “👤 For solo workers (freelancers, drivers, barbers, etc.)”Do I need to register a company?
Section titled “Do I need to register a company?”Not necessarily. You can receive tips as an individual. However, you are responsible for reporting this income to your local tax authority.
Do I need a contract with GoTips?
Section titled “Do I need a contract with GoTips?”No — by using the platform, you agree to our Terms of Service. You’re not an employee of GoTips.
Should I declare this income?
Section titled “Should I declare this income?”Yes. Tips you receive via GoTips are considered personal income and should be declared according to your country’s tax rules.
🧑💼 For businesses (restaurants, cafes, hotels, etc.)
Section titled “🧑💼 For businesses (restaurants, cafes, hotels, etc.)”📄 Do we need a contract with GoTips?
Section titled “📄 Do we need a contract with GoTips?”No, in most cases you don’t. GoTips is a self-serve platform for individuals. Even if you manage a team or run a venue, you’re using the platform as a private individual, not on behalf of a company — and no contract is required.
✅ This model is a huge advantage for businesses:
- No formal agreements
- No funds pass through your company
- No need to distribute cash or track individual tips
- No paperwork or tax reporting required on your side
- You avoid the liability and admin of managing pooled tips internally
💡 Tips go directly to individuals — fairly split and fully transparent — using QR codes, links, or shared terminals.
If you’re a larger business and need a custom agreement, we’re happy to help
🔄 How tip distribution works
Section titled “🔄 How tip distribution works”- Owner or manager of organization creates a “business” (a virtual team space)
- They set rules for how tips are shared (e.g., equally, by % per person)
- Team members join voluntarily and agree to the rules before receiving tips
- GoTips automatically splits and routes each tip accordingly
💰 Who pays taxes and how?
Section titled “💰 Who pays taxes and how?”Each individual who receives tips through GoTips is responsible for declaring this income and paying taxes in accordance with their local tax regulations. GoTips does not withhold, collect, or report taxes on behalf of users.
We recommend team members keep track of their tip income using their dashboard and consult an accountant or local tax advisor if unsure about reporting obligations.