Results 1 to 6 of 6
  1. #1
    Member
    Join Date
    October 25th, 2006
    Posts
    123
    Are you set up as an LLC or Corp?
    Hello, I have a few of my own sites/products online but I am an individual.

    Do you recommend setting up an LLC that will cover all of my online sites as a whole?

    Thanks for the advice.

    matt

  2. #2
    No Longer Banned!
    Join Date
    January 19th, 2008
    Location
    Wilmer, Texas 75172
    Posts
    939
    Quote Originally Posted by mweidner2782
    Hello, I have a few of my own sites/products online but I am an individual.

    Do you recommend setting up an LLC that will cover all of my online sites as a whole?

    Thanks for the advice.

    matt

    It depends on your tax stance. A corporation is good if you have certain tax issues you wish to take advantage of.

    A corporate minimum tax applies in most states so if you are a puny out fit, you might not wanna get socked w/ a 20K/ yr min tax bill.

    As a side note, a DBA avoids this, but the fact is if you get sued you lose your real / personal property too. Then again, there is no personal income tax if you don't pay your self a salary either.

    An LLC or s corp allows you to pay separate income taxes on your corporate and your personal income. Now as soon as you do either of these the tax man will show up at your door. Often these taxes must be paid quarterly and you stay on the IRS's Radar. Permanently.

    To be honest, I'm not really all that sure if structuring your outfit as either an s corp or an LLC {Or an LLP in some cases} will have much of an effect on your setting up a parent company and a multitude of subsidiaries, do you ?

    Each has it's tax advantages yes, but as far as the basic corporate structure your asking about I'm thinking it is kinda an either or situation.


    Someone wanna correct me on this ??

    Hope this helps

    Steve
    DreamLinux.net | Registered Linux User 453976 | PM me to view our sites. It's a Google thing.

  3. #3
    Newbie
    Join Date
    June 10th, 2008
    Posts
    14
    This is one of those questions where the answer is "Well, it depends...". Your best bet is probably to do some research on Google, search for "sole proprietorship", "LLC", "business types", and so forth, find some sites that discuss the features of each business type and the advantages and disadvantages of each. Then figure out which one is most appropriate to your situation. You could also check your local library or bookstore for a business-startup type book, these typically discuss this issue. You may also want to discuss this with your accountant and/or lawyer before you make a decision.

    Now, having said that, I'm in the planning stages of starting my affiliate business (working on my first site now) and I plan on starting with a sole proprietorship, and then later on I'll switch to the LLC form if necessary. I've dealt with both the sole proprietorship type and the LLC type before, and the sole proprietorship is definitely easier to set up, manage, and shut down. I figure it should work just fine for running a few affiliate websites, at least in the beginning. I don't plan on selling any of my own products, so I'm not so concerned with taking advantage of the limited liability offered by an LLC. (Well, at least I don't think limited liablity is that important for affiliates. Maybe someone with more experience in this field could address this issue? However, I noticed that you mentioned you sell some of your own products, so the 'limited liability' aspect of an LLC may be more important to you). Also, I'm employed full-time and have benefits through my employment, so I don't need to take advantage of the fringe benefit deductibility that the LLC and corporate structures offer. LLC's and corporate business structures also offer other tax advantages, but I figure it's going to be awhile before I'm making enough money for that to be a concern. So I think the LLC or corporate structure for me at this stage is just more trouble that it's worth. But that's my analysis of my situation, and your situation may be very different and, consequently, the appropriate business structure for you may be different.

  4. #4
    Member
    Join Date
    January 18th, 2005
    Location
    Upstate SC
    Posts
    173
    I am setup as an S Corp.

    The best advice you can get, will be from your trustworthy CPA. Unless you're a tax whiz, and by this question you aren't (me neither), you're going to need one.

    Find a good CPA that you want to work with long term, someone who knows his stuff, will be there for you if you get audited and is easy to work with.

    Go over your current business and future plans with revenue expectations and what you plan to do with it. He should then be able to advise you the best route moving forward, as well as help you with payroll accounting and quarterly/yearly reports and all the headache that goes along with it.
    [url=http://www.drastictactics.com/]Drastic Tactics[/url] - Performance Marketing Since 1998

  5. #5
    Member
    Join Date
    June 22nd, 2008
    Posts
    59
    Insurance Matters Here ...
    If you go the sole proprietor route, you should seriously think about getting some personal liability insurance ... sometimes called an 'umbrella' liability policy. Basically it kicks in after all your other types of liability insurance are maxed out but it is cheap and could save your bacon. But make sure you read it and it covers you properly.

    If you go the corporate or LLC route, Wyoming, Nevada & Delaware are the places you want to incorporate. If you do not live in those states you will need to pay a REPUTABLE resident agent there to receive information from the respective Secretaries of State and have it forwarded to you.

    A most useful site to check out is legal zoom - google it for the link.

  6. #6
    Newbie
    Join Date
    June 10th, 2008
    Posts
    14
    Don't know if you saw it yet, but there is a similar discussion going on here: http://forum.abestweb.com/showthread.php?t=108793

  7. Newsletter Signup

+ Reply to Thread

Similar Threads

  1. SS#/Corp ID#/ABN Problem
    By luman in forum BettyMills
    Replies: 1
    Last Post: October 22nd, 2005, 03:53 PM
  2. Anyone know who BBG corp is?
    By Billy Kay in forum Midnight Cafe'
    Replies: 5
    Last Post: December 2nd, 2004, 07:10 AM
  3. SS#/Corp ID#/ABN for BettyMills
    By pepe1 in forum Andy Rodriguez Consulting
    Replies: 1
    Last Post: August 21st, 2004, 11:22 PM
  4. I don't have SS#/Corp ID#/ABN
    By pepe1 in forum BettyMills
    Replies: 1
    Last Post: August 17th, 2004, 05:28 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •