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  1. #1
    Newbie M2Lim84's Avatar
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    To incorporate or not?
    Ok, Im completely new to internet marketing and online business. I'm currently working on a few projects that are promising.

    I was wondering, should I create an LLC or corporation?

    Or should I just worry about it once I start making money?

    Just a little confused about whats going to be the best for me?

    -M

  2. #2
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    Which type of corporation (llc, C corp, etc.) depends on a few factors...

    Which State you live in, how much money will flow through the corporation, etc.

    The changing Government climate and the potential "flux" in tax regulation/rates will make a difference as well.

    Generally speaking, (remember, I'm NOT a lawyer), you can always start with an LLC and then convert it to a full C Corporation when it's advantageous to do so. But if your goals are fairly high, I would seek the advice of your family attorney and CPA (NOT a common tax preparer).

    Scott

  3. #3
    AM Navigator Geno Prussakov's Avatar
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    I think that a single-member LLC (with its simplified tax reporting - on your personal return) is the best way to start.

    You may also find this thread of help: http://forum.abestweb.com/showthread.php?t=108806

    Geno

  4. #4
    ABW Ambassador MeeMaw's Avatar
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    I have always recommended going full protection and tax advantages of a "C" corporation. I like to keep my personal and business information separate.

  5. #5
    Newbie M2Lim84's Avatar
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    Quote Originally Posted by MeeMaw
    I have always recommended going full protection and tax advantages of a "C" corporation. I like to keep my personal and business information separate.
    So does that mean that if I create an LLC that my personal information won't be seperate from my my business and that I won't have full protection?

    Just wondering because right now its seems that creating an LLC would be the easiest and cheapest.

  6. #6
    Merchant & ABW Ambassador
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    Quote Originally Posted by Geno Prussakov
    I think that a single-member LLC (with its simplified tax reporting - on your personal return) is the best way to start.

    You may also find this thread of help: http://forum.abestweb.com/showthread.php?t=108806

    Geno
    Have to agree with G.

    Depending on your state, it could take a few hundred dollars to incorporate and if this is a work that you are testing, do a LLC which might be less than 50$

  7. #7
    ABW Ambassador PatrickAllmond's Avatar
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    My Sub S was pretty easy to create also.

    I'd really base it on what your long term goals are.

    1. Are you dabbling and experimenting for right now but will throw in the towel if it all comes crashing down? Then leave everything as is and do it under your SSN. You can still have a company name, business cards, etc. Plenty of people here do it under their own SSN.

    2. Are you diving into this and will make it work because this is part of a good long term strategy for you and your lifestyle? Then plan for your success now and form a Sub-S corporation (Or LLC, etc) . Get the correct form and file for a tax ID number from the government.

    Don't fret on your original question too much. Anything you pick now can always be changed. And you will find lawyers/tax advisors that prefer all types of companies.
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  8. #8
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    BtteryFuelPatric pretty much summed it up. However, I highly recommend consulting with a busness attorney as to which type of entity your busness should be if you are going to be doing extensive online marketing.


    Good luck with your ventures!

  9. #9
    Full Member Tech Evangelist's Avatar
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    The reporting requirements are less and there are fewer expenses with an LLC. If you do not follow all of the rules for a corporation, your can lose your legal protection.

    An LLC is a separate entity.

    You can apply to have an LLC taxed as an S-Corp, which gets taxed at your personal rate. If you income gets pretty high, it is usually advantageous to convert to a corporation.

    It might be a good idea to talk to a CPA. He or she can give you the best advice from a tax perspective.
    There's good, fast and cheap. Pick any two.
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  10. #10
    Newbie M2Lim84's Avatar
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    thanks
    thanks for the advice everyone... I think as soon as I start making some real money I'll start off with the LLC.

    Unfortunately I don't have the money to talk to a CPA or Lawyer!

    One step at a time,
    -M

  11. #11
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    Quote Originally Posted by M2Lim84

    Unfortunately I don't have the money to talk to a CPA or Lawyer!

    One step at a time,
    -M
    You don't need a Lawyer or CPA.

    I incorporated my C-Corp myself. It is very simple. There are plenty of information on the State of Secretary (depends on what state you're at)website.

    The only reason I hire a CPA is to do my annual tax return. You can do tax yourself too.

  12. #12
    Moderator BurgerBoy's Avatar
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    This thread is 7 years old.

    Closing thread.

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