David Risley: Five Terrible Reasons You Failed To Incorporate Your Online Business
David Lithman
· 6 months ago
I formed an LLC last summer to cover all my online ventures and websites. In Florida, it cost me I believe $155 because I got a certified copy along with it. Then in March or April I had to fill out the annual papers and paid an annual fee. It's a very little cost considering the benefits you receive from having an LLC.
JR Griggs
· 6 months ago
Great post. This is a topic not covered often in the courses out there but is very important.
Quick question, does selling products in other states apply if it is sold from here in Florida? I started an LLC but considered switching to an S-corp because it seems to be popular among Bloggers and Internet Marketers. I spoke with another Internet Marketer who uses and LLC and then uses DBA's under that.
Lisa Morosky
· 6 months ago
Funny how I read this post as I was looking up info on the same topic!
Michael, what are your thoughts on waiting to incorporate if you know you'll be relocating in a year or so? That's my current dilemma, as I'm currently in transition.
Caden Grant
· 6 months ago
Great post I agree. I've been seeing more about this topic lately but I still think it's not considered enough by most people. Great work.
Shannon Herod
· 6 months ago
fantastic post. Is a topic that is rarely discussed in our industry, but a topic that needs to be discussed. Most people are out there are running blind with no protection at all. Unfortunately, I think it's because people are building hobbies and not businesses.
People look at their Internet business has an extra money maker. Something they'll do on the side to make a little bit of extra money. Most people don't really look at it as a true business.
ChuckRosseel
· 6 months ago
Excellent advice. Heck, even the Singing Naked Cowboy (Times Sq. street performer) is incorporated.
Mike Wasylik
· 6 months ago
Lisa, depends on your facts. Generally, most lawyers advise forming your entity in the state you'll be doing business in. You could start one here, or one where you're going, ot both, or start one here and then a nnew one later. Mostly depends on your risk tolerance.
JR, an s corp is treated the same in every state but an llc is not. Sale of goods exposes you to suit elsewhere, but enforcement would still be here, so either one is better than nothing. If you want to expand into other states you might find a corporation more suitable.
Genevieve
· 6 months ago
My tax person here in CA advised me that there's an $800 per year filing fee here in California to file taxes as an LLC. Worse if you're a corporation.
I've also been advised by multiple reputable sources that an LLC does not in fact protect your personal assets if you get sued. Liability insurance is the only way to truly protect your assets (business and personal).
So a sole proprietorship with liability insurance is the most efficient way to go, from what I have been advised, here in California.
I'm just a gardener, but I've looked into this quite a bit here and I don't think the blanket statements about LLC's you make are completely accurate (for CA at least) - at the very least there is professional disagreement on it.
Mike Wasylik
· 6 months ago
Genevieve: You're correct that California puts a much higher price on doing business than almost every other state in the union. That is, I understand, one reason so many Californians set up their businesses in Nevada.
As far as protection of personal assets via an LLC, I pretty clearly stated that every state treats LLC's differently. California is one such state, and I for one wouldn't do business there because of it.
Melvin
· 6 months ago
Great writing style. :) I myself is really having some difficulties of choosing between LLC and s-corp
Jennifer Moore
· 6 months ago
My company is small--just me, not much income right now--but I formed an LLC immediately. (I'm in Maryland.) Having recently had some personal financial difficulties (big ones,) I wanted to be sure I'm protected if something should happen. Liability insurance is in my future, once business picks up a bit.
It was $140 to get set up, and it's $300/year to renew it. I don't see that as a huge expense, considering the benefits.
All Comments
Quick question, does selling products in other states apply if it is sold from here in Florida? I started an LLC but considered switching to an S-corp because it seems to be popular among Bloggers and Internet Marketers. I spoke with another Internet Marketer who uses and LLC and then uses DBA's under that.
Michael, what are your thoughts on waiting to incorporate if you know you'll be relocating in a year or so? That's my current dilemma, as I'm currently in transition.
People look at their Internet business has an extra money maker. Something they'll do on the side to make a little bit of extra money. Most people don't really look at it as a true business.
JR, an s corp is treated the same in every state but an llc is not. Sale of goods exposes you to suit elsewhere, but enforcement would still be here, so either one is better than nothing. If you want to expand into other states you might find a corporation more suitable.
I've also been advised by multiple reputable sources that an LLC does not in fact protect your personal assets if you get sued. Liability insurance is the only way to truly protect your assets (business and personal).
So a sole proprietorship with liability insurance is the most efficient way to go, from what I have been advised, here in California.
I'm just a gardener, but I've looked into this quite a bit here and I don't think the blanket statements about LLC's you make are completely accurate (for CA at least) - at the very least there is professional disagreement on it.
As far as protection of personal assets via an LLC, I pretty clearly stated that every state treats LLC's differently. California is one such state, and I for one wouldn't do business there because of it.
It was $140 to get set up, and it's $300/year to renew it. I don't see that as a huge expense, considering the benefits.
Great post.