LLC or Corporation?

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acesfullokc

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Feb 23, 2007
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Ok. after many months of reading posts, researching keywords, building landing pages, tweaking landing pages, creating campaigns, deleting campaigns, I feel I have finally gotten a hold of the arbitrage game.

My question is, should I incorporate or form an LLC? I basically want to be protected, personally, against a lawsuit or a bankruptcy down the road. I also would like to apply for lines of credit under my company's name. If I form and LLC am I protected from the debt my company may incur?
 


With an LLC you have "limited liability" but yeah, I think all you would ever need would be an llc.
 
I think you're getting way ahead of yourself. You are spending money to do something that you don't need at this point that could better be directed at getting started. Also, you are not going to be able to secure credit under solely the business. Your business won't have the resources to get this and you will have to personally gaurantee it anyways.

Save your money and invest it in something productive. A sole propreitorship is all you need. The liabilities in what you are doing are going to be lower than a traditional business anyhow.
 
Im not making tons of money from affiliate marketing by far but I agree with wdmny, there really doesnt seem to be a need for it.

Unless you are going to have a real business out of it, for instance, I got a business license for my web design company, but thats because it is an actual company - Even then im not sure if its necessary but I like having a professional front and being able to seperate business and personal income/expenses...

I also heard theres some monetary amount that once you reach it you need a business license or you have to claim it as income and get taxed on it, anyone know anything about this?
 
Personally I'd go with an S-Corp to avoid double taxation, however, get successful first. There's no need to worry about this at first until you get established and feel this is something you want to pursue full time.

But as with any other tax advice, it has to be said, get a CPA and discuss it with them. Don't register your corp through a cpa, they will rape you, but their advice is golden.
 
I agree with ScottDaMan, go with the S-corp. But also wait until you get to be a little more successful. I would never become a sole proprietor. By being a sole proprietor, if you ever get sued they can go after your personal assets, unlike a S-corp. Most states allow you to apply to become a business online. But yes, consult a CPA for further advice, and no do not register through the CPA, unless you don't mind throwing away a couple hundred bucks when it really only costs like $50 or so.
 
Just because you have a corporation, doesn't mean you can't be sued personally, especially if you are more than just a passive owner (ex: you are also doing the work).

The other thought I have on limiting your liability is that you don't have a physical presence or real clients and therefore your liability is much less than a more traditional business. I have a hard time picturing what you might do to get sued that wouldn't be suspect anyways (copyright infringement, PPC fraud, etc...).

If you want a basic separation of finances, get a separate checking account. File the DBA papers and you can get a checking account in the name of your business. You can also get credit cards in the business name as well.
 
i think my biggest concern is financial, credit to be specific. As of now, my ad campaigns are eating up my budget and im sinking all of the cash i have on hand to keep my ads running. Id like to open a line of credit to use for the advertising side of things, but if i max out a card in my name, and i (knock on wood) get banned from google, and not get paid for that month, im proper fucked.
 
Well, with the credit issue most banks want to see the business be around for like 2 years before you can open a line of credit in the biz name. For regular credit cards, I am not sure, I have not tried it. But I am sure there are some companies that will give you credit.
 
Go with the LLC, but seriously, for stuff like this, just get your EIN, register the business with local authorities and be done with it. . . .

Unless you want the hassle of filing quarterlies, publishing articles, etc . . .

Good luck.
 
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