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Affiliates and Mr. Tax Man

bwagner
Posts: 2
Joined: 28 Apr 09
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Affiliates and Mr. Tax Man

For those of you that have made a substantial amount of money through affiliates I was wondering how you set up your so-called affiliate business. Is it best to set up a company using your own personal name or is it better if you have a fictitious name (perhaps the name of your website) and set a company up that way. Do established affiliates make a separate company for each website they build or do they just use something like John Smith Marketing? I know it is probably an individual preference, however, I wondered what the majority of folks were doing. Did you start out using your own name and decide later after making some money that you needed an actual company? I assume if you make a substantial amount of money you will receive a 1099 with your earnings listed from ClickBank. Anyone have suggestions for the newbies?
Thanks
Schnitzelpix
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graceharman
Posts: 124
Joined: 19 Oct 08
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Hi Schnitzelpix,
Most affiliates start out as sole traders and then form companies once they get to the point where they have some substantial assets to protect and/or start hiring employees.
In most cases you could have all your sites under one generic company name. The exception would be if you feel one of the niches you are in is higher risk some reason. In that case, you might want to trade under a separate company for that niche so that you don’t lose everything should something go wrong.
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wollowra
Posts: 1283
Joined: 14 Mar 08
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Your accountant will be able to advise you on this, my tax guy gave me some really good advice
:)
Troy
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Enjoy the little things, for one day you may look back and realize
they were the big things.

-- Robert Brault
 
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sean06
Posts: 1377
Joined: 16 Jun 06
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Yep, definitely go see an accountant about this stuff.

I don't know how you'd go creating companies under a false name :)

Creating pen names is fine, but they're not owning companies. I did what Grace did and started as a sole proprietor, then once I hit a certain level I formed a corporation.

Sean
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crystal01
Posts: 123
Joined: 30 Apr 09
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Hi Sean,

How is the Melbourne winter treating you? We are having a reasonably mild winter on the South Coast.

Can you explain pen names and how they would affect corporations please?

Also, Corporations are required to have AGMs and they have other legal requirements that sole proprietors aren't required to satisfy as well. Do you find these legal requirements difficult to satisfy?
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This topic was started on Aug 06, 2009 and has been closed due to inactivity. If you want to discuss this topic further, please create a new forum topic.

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