Do I need to register a business?

M

McCheese

New member
Apr 20, 2010
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Hey guys!

I am in the US, and interested in affiliate advertising (on Facebook initially). Do I need to legally register a business to start?

I noticed they ask for a business name when you register with networks, and Im sure theres prolly some tax stuff that they'll ask about too.

If you do need to to start, do most people get a dba, or LLC or something?; and if you dont need to, how do you deal with the network registration and tax stuff?

Thanks!
 


You don't *need* to to start. Networks ask for W9 forms and your SSN if you aren't a business entity. For business name you can just put your name.

Though it is a good idea to look into this and talk to an accountant and business attorney.
 
It's definitely a good idea to create a separate business entity (LLC, S-Corp, etc.). Alternatively, you can use a DBA, as you mention. There are some self-serve online platforms where you can create your own entity. Significantly cheaper than a traditional lawyer if you are looking for something straightforward.

There have been a few lengthy posts within the last few months about the merits of each structure. These should turn up with a quick search.

Also consider a separate business address (PO box generally works), as well as a business bank account.

It can take a few weeks to get all of this in place. You could start using your personal information, and then switch your payment info as necessary down the road.
 
If you're starting out, I recommend you DONT start one. I say this for only one reason: it delays action. Use the cash you make from campaigns to pay the fees to set up an LLC or whatever is right for you. Write-offs don't mean shit if you aren't pulling in revenue.

If you already had some success then follow above advice.
 
Once you've established and have guaranteed income, this is the time to incorporate. Unlike what most people say, having a business doesn't really save you any money, especially after you pay to have it registered and have to pay yearly fees. However, it does protect you from some legal liability and thus is essential to those running questionable offers like rebills and such.
 
I wouldn't worry about it until you actually start making some money unless you have significant assets (acquired some other way).
Have nothing = Nothing to lose
 
flamebrand said:
Once you've established and have guaranteed income, this is the time to incorporate. Unlike what most people say, having a business doesn't really save you any money, especially after you pay to have it registered and have to pay yearly fees. However, it does protect you from some legal liability and thus is essential to those running questionable offers like rebills and such.
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This is completely not true.

Having a business will save you a ton of money through deductions to your income.

More importantly, on the issue of liability, no business entity, including a corp, will protect you from liability if you are involved in the wrongful activity. (such as rebills).

In other words, you're sitting at home running a scam and are worried about liability. So you setup a corp and continue running the scam. All that happens is you AND the corp have liability.

A corporation only protects from liability actions you are not involved in. For example, you own a storefront and a customer slips on a banana peel while you are on vacation. Your corporation may have premises liability, but you personally would not because you were not involved in setting out the banana peel.
 
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