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  1. #1
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    Question LLC or just my name ?
    In order to start in this new world,... LLC or just my name?

    WHY?

    Thank you very much guys!


  2. #2
    Member ABCMonkey's Avatar
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    Quote Originally Posted by SeaBiscuiT
    In order to start in this new world,... LLC or just my name? WHY? Thank you very much guys!
    Definitely talk to a financial advisor, and potentially a legal one, to find out what you hope to financially achieve and how it will best help your business situation.

    However, I know affiliates who set up one or the other, or both. Also, every state is different when it comes to LLC's too. There is so much to cover here. But setting up an LLC does offer you a certain amount of legal protection, providing you don't conduct anything illegal with it, then in that case, it doesn't matter. No shield of protection. You can be sued as an individual.

    Nonetheless, you can go about handling your business as a sole proprietor and obtain a federal tax identification number instead of using your social security when signing up for programs. I'm not a fan of using my social for anything, so I use a tax id.

    I like managing businesses thru an LLC since it does offer some identity protection and I can write items off with relative ease, along with obtaining asset protection (keeping my personal assets separate from the assets of the LLC -- if the LLC is sued, at least my personal assets are somewhat protected provided I did not conduct illegal activity with the LLC). It does cost you to set it up and maintain, and in some states, there is a minimum tax you must pay just for the privilege of forming an LLC in that state, whether you make an income or not.

    So, maybe for starting out, unless you get some great financial and legal advice to say otherwise, it might be easier for you to get a tax i.d. and handle your business as a sole proprietor until you make enough dough to hire the right people to give you the advice you need.

    There IS a lot to cover here. Lots of angles depending on the individual. Everyone will probably have a different reason for structuring their business (including forming corporations of various kinds).

    I hope this helps. Run a search for LLC information for the state you are conducting business. Also, check with you state government regarding tax implications, etc.

    EIN (Federal Tax ID information)

    SBA on business entities

  3. #3
    ABW Veteran Mr. Sal's Avatar
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    Quote Originally Posted by SeaBiscuiT
    In order to start in this new world,... LLC or just my name?

    WHY?

    Thank you very much guys!

    Short answer: Buy SeaBiscuiT.com and find a merchant that sells some kind of bread or breaded seafood pastry to start.

    Or........

    Long answer: Read ABCMonkey reply! Definitely talk to a financial advisor


    My answer, get a domain name, get some merchants to promote on that domain name, make some money first, and then worry later if you want to do any LLC, PIP, SA, ETC, ETC......
    ...

  4. #4
    ABW Ambassador best123's Avatar
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    Quote Originally Posted by Mr. Sal
    My answer, get a domain name, get some merchants to promote on that domain name, make some money first, and then worry later if you want to do any LLC, PIP, SA, ETC, ETC......
    Merchants can help you promote your domain name? Hmm, I didnt know that.

  5. #5
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    "get some merchants to promote on that domain name,"

    not

    "get some merchants to promote that domain name,"


  6. #6
    ABW Ambassador best123's Avatar
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    Quote Originally Posted by ABCMonkey
    I like managing businesses thru an LLC since it does offer some identity protection and I can write items off with relative ease, along with obtaining asset protection (keeping my personal assets separate from the assets of the LLC -- if the LLC is sued, at least my personal assets are somewhat protected provided I did not conduct illegal activity with the LLC). It does cost you to set it up and maintain, and in some states, there is a minimum tax you must pay just for the privilege of forming an LLC in that state, whether you make an income or not.
    Is the cost of setting up an LLC tax deductible?

    and do you have to pay and register every year or is it a one-time set up?

  7. #7
    ABW Ambassador best123's Avatar
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    Quote Originally Posted by TrustNo1
    "get some merchants to promote on that domain name,"

    not

    "get some merchants to promote that domain name,"

    yikes! i need to take ginko-biloba to make me more alert!

  8. #8
    ABW Veteran Mr. Sal's Avatar
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    Quote:
    Originally Posted by Mr. Sal

    My answer, get a domain name, get some merchants to promote on that domain name, make some money first, and then worry later if you want to do any LLC, PIP, SA, ETC, ETC......


    Quote Originally Posted by best123
    Merchants can help you promote your domain name? Hmm, I didnt know that.
    Even after I re-read this, I can say yes to that!

    ------------

    Quote Originally Posted by TrustNo1
    "get some merchants to promote on that domain name,"

    not

    "get some merchants to promote that domain name,"

    not?.....................

    I know that my english may not be perfect, but the way I say this is like:
    "get some merchants to promote on that domain name" is like saying:

    If you got a domain name like boots.com, you sould be able to promote some shoes, sandals, or high heels shoes on that domain name.

    YEA, f-k it, now I see that the "get some merchants to promote" line get lost on the translation, so I am going to say it may way now..........

    SO, IF I own BAKERY.COM, I am not going to get some merchants to promote on that domain name....... I would just going to say: I'm Going to promote some Bread merchant, Cake merchant, Pastry Merchant.....ETC, ... ETC... on that domain name.

    F-K Off

    If by me saying "get some merchants to promote on that domain name"
    means, Get the merchant to promote my domain name, then either my english really sucks, or your reading is limited or just too Fkng Selective.

    SAL.
    ...

  9. #9
    ABW Ambassador best123's Avatar
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    Quote Originally Posted by Mr. Sal

    F-K Off

    If by me saying "get some merchants to promote on that domain name"
    means, Get the merchant to promote my domain name, then either my english really sucks, or your reading is limited or just too Fkng Selective.

    SAL.
    It has become selective out of dissapointing newbie affiliate experiences

    - I have done my work I want results!!!

    wash your key board, mouth and hands with soap - you f too much

  10. #10
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    Quote Originally Posted by best123
    Is the cost of setting up an LLC tax deductible?

    and do you have to pay and register every year or is it a one-time set up?

    You pay the attorney a one time fee to set up your corporation, regardless of type of corporation. You pay initial registration fees which the attorney will handle.

    The registration is a one time event.

    You pay fees to the state each year to maintain your corporate status.

    All fees and expenses pertaining to the corporation are tax deductable too the corporation itself.

    You file 2 tax returns, one for personal, one for corporation............KEEP THINGS SEPARATE..........or you loose the corporate protection.

    My advice is to have a CPA prepare the tax returns. The tax people are real sticklers for proper paper work.
    You must climb this mountain. There is no elevator. ---- Don't stick your finger in the liquid nitrogen.
    Carolina China

  11. #11
    ABW Ambassador best123's Avatar
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    Quote Originally Posted by Witzer
    You pay the attorney a one time fee to set up your corporation, regardless of type of corporation. You pay initial registration fees which the attorney will handle.

    The registration is a one time event.

    You pay fees to the state each year to maintain your corporate status.

    All fees and expenses pertaining to the corporation are tax deductable too the corporation itself.

    You file 2 tax returns, one for personal, one for corporation............KEEP THINGS SEPARATE..........or you loose the corporate protection.

    My advice is to have a CPA prepare the tax returns. The tax people are real sticklers for proper paper work.
    Thanks for explaining it all Witzer...

    I think I'll do all this after seeing some results, right now I haven't earned a penny to feed myself.

  12. #12
    Member ABCMonkey's Avatar
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    Quote Originally Posted by Witzer
    You pay the attorney a one time fee to set up your corporation, regardless of type of corporation. You pay initial registration fees which the attorney will handle. The registration is a one time event. You pay fees to the state each year to maintain your corporate status.

    All fees and expenses pertaining to the corporation are tax deductable too the corporation itself.

    You file 2 tax returns, one for personal, one for corporation............KEEP THINGS SEPARATE..........or you loose the corporate protection. My advice is to have a CPA prepare the tax returns. The tax people are real sticklers for proper paper work.
    Best,

    This is pretty much a general overview that Witzer outlined, but ultimately, yes, a financial advisor will help you with the details. For example, the registration fee is generally a tax deductible expense, your tax (financial) advisor will tell you precisely if this a deductible expense in the year it was incurred, or if you must depreciate it over a period of time as a startup cost (I think it's the latter, but check with your advisor). The government is somewhat clear as to what can be written off in the year, and what can be appreciated.

    You can also pay a lot of money to have a third party form the LLC for you. Or, if you know what you are doing, you can form it yourself rather inexpensively using an online service. However, in the end, the cost you pay to form the LLC is small. Not spending the money on seeking the help from a financial professional can burn you if you don't make the right choices without one. The money is worth investing in an advisor who should give you sound advice, manage your books or handle your taxes, or all of the above. There are also some great books that are relatively easy reads.

    Check out the links I listed in an above posted reply as a starting point to understand the LLC basics. But as I mentioned, as well as Mr.Sal, you might want to make a go at it as a sole proprietor first, and make some money. Make sure you are in this business for the long haul before you spend too much on entity formation (although, it's not unwise to form one as long as you know what you are doing and why you are forming one). Transferring your business from a sole proprietorship to an LLC is a relatively simple task for your books. Since an LLC is a pass thru entity, you'll be keeping track of your expenses, and hopefully profits, just like you would with a sole proprietorship. By then, you should have a clear idea why you want to form one and how it will benefit you (and/or your partners).

    Just a quick note comparing the LLC to SP's, after you've completed the tax forms for your LLC, the profit/loss allocated to your share in the LLC will be passed through to your personal taxes and noted on a K-1 form (this is just like receiving a 1099 from doing contract work or a w-2 from your employer; an LLC provides K-1 forms to note the allocated ownership/profit/loss from the LLC to the individual who has shares in the partnership). You will then included this form with your other tax reporting forms (1099, w-2, 1099int, etc), take that compile information and file your personal long form with the IRS. Your tax advisor will also help you with personal write-offs, I'm sure.

    Franchise Tax Board

    There are lots of other elements to this and it shouldn't really be taken lightly (not that you are taking it this way).

    Read up on as much as you can, come up with a plan for you and your business, and then take that knowledge to a financial advisor (or your tax person) to find out how best to structure your entity and if doing so is beneficial for you and your business makeup.

  13. #13
    What's the word? Rhia7's Avatar
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    Quote Originally Posted by ABCMonkey
    Read up on as much as you can, come up with a plan for you and your business, and then take that knowledge to a financial advisor (or your tax person) to find out how best to structure your entity and if doing so is beneficial for you and your business makeup.
    Try Nolo's LLC or Corporation? How to Choose the Right Form for Your Business http://store.lawbooks.com/92122.html

    That is not an affiliate url. http://store.lawbooks.com/ is the store

    92122.html is the page

    Nolo publishes many books on LLC. Check out Nolo (it's a legal publisher)
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  14. #14
    Member ABCMonkey's Avatar
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    Quote Originally Posted by Rhia7
    Try Nolo's LLC or Corporation? How to Choose the Right Form for Your Business http://store.lawbooks.com/92122.html
    Thx, Rhia. Wasn't sure about posting links to products here. But this was one of the books I was thinking about and actually used along with another Nolo Press book on the subject (as well as numerous other subjects). These Nolo books are an easy read and will help clarify a lot on the subject of entity creation.

  15. #15
    What's the word? Rhia7's Avatar
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    Quote Originally Posted by ABCMonkey
    Thx, Rhia. Wasn't sure about posting links to products here. But this was one of the books I was thinking about and actually used along with another Nolo Press book on the subject (as well as numerous other subjects). These Nolo books are an easy read and will help clarify a lot on the subject of entity creation.
    The number at the end is the sku or product number or something.

    I can post the above because it is not an affiliate url (i.e. I make no money if you buy that book). Had I posted an amazon.com url with my affiliate code in the link, that would have been a different story.

    Nolo books explain legal concepts in language that non-lawyers can understand
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  16. #16
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    Quote Originally Posted by ABCMonkey
    Definitely talk to a financial advisor, and potentially a legal one, to find out what you hope to financially achieve and how it will best help your business situation.

    However, I know affiliates who set up one or the other, or both. Also, every state is different when it comes to LLC's too. There is so much to cover here. But setting up an LLC does offer you a certain amount of legal protection, providing you don't conduct anything illegal with it, then in that case, it doesn't matter. No shield of protection. You can be sued as an individual.

    Nonetheless, you can go about handling your business as a sole proprietor and obtain a federal tax identification number instead of using your social security when signing up for programs. I'm not a fan of using my social for anything, so I use a tax id.

    I like managing businesses thru an LLC since it does offer some identity protection and I can write items off with relative ease, along with obtaining asset protection (keeping my personal assets separate from the assets of the LLC -- if the LLC is sued, at least my personal assets are somewhat protected provided I did not conduct illegal activity with the LLC). It does cost you to set it up and maintain, and in some states, there is a minimum tax you must pay just for the privilege of forming an LLC in that state, whether you make an income or not.

    So, maybe for starting out, unless you get some great financial and legal advice to say otherwise, it might be easier for you to get a tax i.d. and handle your business as a sole proprietor until you make enough dough to hire the right people to give you the advice you need.

    There IS a lot to cover here. Lots of angles depending on the individual. Everyone will probably have a different reason for structuring their business (including forming corporations of various kinds).

    I hope this helps. Run a search for LLC information for the state you are conducting business. Also, check with you state government regarding tax implications, etc.

    EIN (Federal Tax ID information)

    SBA on business entities
    Thank you very much!

    Really helpfull information,...

    Can you please explain me what a sole proprietor ???

    THNXAGAiN!!!


  17. #17
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    Quote Originally Posted by Mr. Sal
    Short answer: Buy SeaBiscuiT.com and find a merchant that sells some kind of bread or breaded seafood pastry to start.

    Or........

    Long answer: Read ABCMonkey reply! Definitely talk to a financial advisor


    My answer, get a domain name, get some merchants to promote on that domain name, make some money first, and then worry later if you want to do any LLC, PIP, SA, ETC, ETC......

    Thanks for your advice...


  18. #18
    Member ABCMonkey's Avatar
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    Quote Originally Posted by SeaBiscuiT
    Thank you very much! Really helpfull information,... Can you please explain me what a sole proprietor ??? THNXAGAiN!!!
    You're very welcome, SeaBiscuit. But slow down just a moment. Brew up a cup of Joe, get yourself seated comfortably in front of your monitor and check out the links I included in the previous post. The SBA link takes you to a page that defines sole proprietor perfectly. I won't define it here in this reply simply because I want to encourage you to research the information from the aforementioned links. You won't be sorry.

    And definitely check out the Nolo books including the one Rhia7 mentioned. Having such material included in your library of business books is a valuable 'must have' series of reference.

  19. #19
    What's the word? Rhia7's Avatar
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    Quote Originally Posted by ABCMonkey
    And definitely check out the Nolo books including the one Rhia7 mentioned. Having such material included in your library of business books is a valuable 'must have' series of reference.
    The books might be in your local library. If not, request a free interlibrary loan.
    ~Rhia7 -- Remember the 7
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  20. #20
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    Quote Originally Posted by ABCMonkey
    You're very welcome, SeaBiscuit. But slow down just a moment. Brew up a cup of Joe, get yourself seated comfortably in front of your monitor and check out the links I included in the previous post. The SBA link takes you to a page that defines sole proprietor perfectly. I won't define it here in this reply simply because I want to encourage you to research the information from the aforementioned links. You won't be sorry.

    And definitely check out the Nolo books including the one Rhia7 mentioned. Having such material included in your library of business books is a valuable 'must have' series of reference.

    You are right,... I'm sorry, it's just overwhelming to me all this things!!!

    I'm doing my best,...


  21. #21
    Member ABCMonkey's Avatar
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    Quote Originally Posted by SeaBiscuiT
    You are right,... I'm sorry, it's just overwhelming to me all this things!!!
    It's overwhelming looking at all the elements involved at the same time. Take a section at a time, learn it, understand and digest it, and before you know, you'll have a wealth of knowledge to apply to your business. I know this well. The affiliate focus is fairly new for me and half of the lingo and references made here is foreign for me. But a little here and a little there. I'll be up and running in no time. You will too. Just keep reading, buddy.

  22. #22
    Full Member Zdig's Avatar
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    visit nolo.com and read the good free info and buy one of their business start-up books. you'll get your $20 worth, promise

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