If I am new to affiliate marketing and do not generate significant income from this (big newb at this), do you think I need to incorporate this business or am I fine without an LLC?
LLC and incorporating
- Thread starter Putnam Junior
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A lot of people use LLC's just to shelter themselves from liability. It isn't really an income-related question.
I personally have experience with both LLC's and S-Corps. When I get around to quitting my "real" job and replace the income I will probably go with an S-Corp. It will cost you $600-2000 to set up (depending on lawyer rates where you live) but there are some huge advantages.
The biggest advantage that an S-Corp has is the ability to take money as dividends. So if you are basically a glorified code monkey doing the AM work you pay yourself a salary of $60K or whatever is the market rate for that job. Anything you make above and beyond that you take as dividends.
This means you do not have to pay FICA/self employment tax on the income above the W2 wage.
It's imperative you have a CPA if you go that route - trust me. Been there, done that, for 12+ years.
I personally have experience with both LLC's and S-Corps. When I get around to quitting my "real" job and replace the income I will probably go with an S-Corp. It will cost you $600-2000 to set up (depending on lawyer rates where you live) but there are some huge advantages.
The biggest advantage that an S-Corp has is the ability to take money as dividends. So if you are basically a glorified code monkey doing the AM work you pay yourself a salary of $60K or whatever is the market rate for that job. Anything you make above and beyond that you take as dividends.
This means you do not have to pay FICA/self employment tax on the income above the W2 wage.
It's imperative you have a CPA if you go that route - trust me. Been there, done that, for 12+ years.
this is what I'm doing. I may incorporate later and include my web design stuff in it as well, so I actually have a service to push as well.
ah okay so i shouldn't be too worried about liability from people who go to my landing pages and then to the actual offer?
If you're doing anything that even gives you a remote chance of being sued, set up an LLC.
If you do everything in your name, and someone sues you and wins, they can take you to the cleaners. If you have an LLC, they will most likely only get what the LLC owns.
Most likely you're fine without one yet, but just something to keep in mind.
If you do everything in your name, and someone sues you and wins, they can take you to the cleaners. If you have an LLC, they will most likely only get what the LLC owns.
Most likely you're fine without one yet, but just something to keep in mind.
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