Forum Moderators: LifeinAsia
Im in the process of forming an LLC as my little site is starting to produce "some" income and im having a hard time figuring out what the best entity is.... I want to treat it like a business, bc i actually sell a physical product and want to limit liablility as well as the fact that no one really takes a sole proprietorship as seriously as a company...
Eventually i would like to also create an entity with Business Credit that can grow on its own w/o me begging for credit or giving a personal Guarantee (think empire building ;)... I've read in many places that you need to create an entity and get it an EIN, register with Dunn & Brad Street and build credit for it by borrowing and paying back on time, etc, etc...
In what kind of entity do you guys hold your web properties (ie. LLC, Inc., etc) and why? Also, how did you go about building business credit?
Also, when your starting out for an LLC what kind of tax election should i choose? I dont make much now, but i dream big and want to start on the right foot ;)
I was hoping people would be willing to share how they choose to legally structure their business and why as well as the type of tax election you started out with (if you are an LLC) and why?
Thx!
An LLC, S Corp or C Corp are structures designed to shelter your personal assets from a business lawsuit. If you need to protect your personal assets from the business, then read on, otherwise a sole proprietorship is probably suitable.
If you're still interested in creating a corporation, I would take a hard look at an LLC. From my research, an LLC allows profits to pass through to your personal taxes, and is not double-taxed. There are fewer restrictions and requirements with an LLC than other structures. There is no board or board meetings/minutes requirements with an LLC, and other details like that.
