Forum Moderators: martinibuster
Was there any consideration besides taxation or potential legal liability?
Anything about AdSense that, in the final analysis, favors one form over the other?
My dilema: Diverse projects, ones that are likely to evolve into quite different entities. Example: directory, industry portal, community, portal+ecommerce. My concern: Start a project as Webwork d/b/a XYZ - a non-incorporated entity - and later breakup XYZ into distinct entities, some incorporated.
I know on approach to the answer: Tax, liability and other considerations are paramount in deciding what form a business takes.
My question, for my benefit and the benefit of anyone else considering similar issues, is - in your case - was there anything about your business that caused you to channel AdSense income into one form or business or another? Is there an argument (facts for or against) to channeling AdSense through a separate LLC and other income through another channel?
Did anyone think to incorporate out of a concern that your content generation might lead to a problem or claim - heaven forbid a lawsuit - in the future?
Does it make sense to run 2 versions of AdSense if allowed? One, through a LLC, for enterprises such as a forum where you are more likely to get sued or challenged and a separate account for your content/fun sites?
Am I the only one who has questions about how best to structure you business relationship to Google and what may be one or, if not your primary income stream?
Go ahead. Say it: You think too much!
;-P
In my country the total admin costs (filing fees etc) for a limited company are around $100 a year, and they are taxed lower than individuals, so it's a clear-cut choice for anything other than a pocket-money business.
For over-regulated countries with more paperwork, costs, and tax implications (such as the US) there might have to be a lot more expected income before it's worth the effort.
Just for 'general fund of information' and sharing of experience across borders feel free to explain how - in your country - the analysis applies.
I guess I wasn't perfectly clear and appeared to limit this to the U.S. Since this is a global community it would likely do well to enlighten others by stating how you went about deciding what to do in your country.
feel free to explain how - in your country - the analysis applies
Not sure if you were throwing this out to all or replying to me (or both)... A limited company/corporation (and, to some extent, LLP) offers benefits - mainly limited liability, but also a more professional image, clearer separation of business and personal money, opportunities for tax planning, ability to sell the business or shares of it, etc. It's also a little easier to split it into "divisions" for multiple projects, especially if other people are involved.
If the costs (time, money) of forming and, especially, running, the company are worth the benefits, I'd do it (and have done, in 4 countries at various times). Personally if I was in the US I'd count the limited liability as an extremely strong reason to incorporate (it's less relevant where I am), but I do realise the costs there make it a much harder choice.
I don't see Adsense making ANY difference one way or another. There's nothing special about it, it's just advertising income, I wouldn't treat it different and it has no effect on the form of the business.
