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Creating a company - LLC or Sole Proprietor?

nates450r
Posts: 425
Joined: 03 Apr 07
Trust:

Creating a company - LLC or Sole Proprietor?

Hello everyone, i was watching a video on commission blueprint and he recommended to create a company for IRS/TAX reasons. so i wanted to know what my fellow affiliate are doing?

i was advised to create a LLC for liability concerns, As you may know or not know it is going to be a website company- i am California based and realize there are affiliates from all over the world-but in general what kind of company's are you guys creating?? LLC or SOLE PROPRIETOR

thanks, for any advise
Nathan
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PremiumMember
chatyak86
Posts: 1369
Joined: 17 Jun 06
Trust:
That is completely dependant on your own situation. I don't have a company and just do it as an individual. Some places might not even be worth having a company unless u do over 100K a year... best to see a tax consultant!

He simply says that because corporate tax is lower than individual.
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nates450r
Posts: 425
Joined: 03 Apr 07
Trust:
Thanks for your help- so what you do is report all earnings at tax time??
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Moderator
wollowra
Posts: 1283
Joined: 14 Mar 08
Trust:
Hi Nates,
It really depends on what you want.
Your tax guy/gal should always be consulted first.
But... If you plan to make 10k a mth.. its better to get an LLC.
Maybe not now, but later on.

Tax works different in many countries but in Australia,
this is how individuals are taxed..

work, earn, get taxed, spend whats left over.

but an LLC...

Build business ( Work ), spend on expenses, then whats left over is taxed.
See the difference?

Hope that helps.
T
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