Discussion in 'Business & Tax Advice' started by refjaf55, Feb 1, 2011.
How do most of you get your money from Adsense.
Did you set up an LLC?
Some advice: don't get your tax information from strangers on a forum. Get an accountant. A good one. And just say no to H&R Block.
That being said, I have two S-Corps.
As the person above said, get an accountant. I also wouldn't worry about forming any type of entity until your business is at least bringing in several thousand a day.
The accountant part, I agree with, the "Until you are bringing in several thousand a day" I surely do not agree with. Look into the difference of a sCorp and a LLC and you will see a huge factor if your a sole owner is self employment tax (you might know of this as an employee as FICA). If you own a sCorp and bring in 30,000, you might be able to write yourself a salary of $15,000 only and keep the other $15,000 in the company. You then only pay self employment tax on the part that you write yourself as a salary (has to be enough to count as sufficient for your current industry). An LLC, or Sole Proprietorship (DBA, or no formation) pays on all. In both cases, income is passed through to your 10-40, but there surely are benefits of one over the other.
Another thing to note is on adverage, sole propritors and partnerships get audited a hell of a long more than sCorps or LLCs. You should be doing your taxes correctly where this wouldn't matter, but who wants to deal with it?
Also write offs look more legit as a registered company. If you have a Sole Pro, the governess will only consider you a company if you show its not just for fun, which means making profits 3 of 5 years, along with other stuff. If your doing a lot of re-investing this isn't always something possible (though online its rather easy). It's a lot easier to prove as a company too that you intend to do this as a business and not just leaser, and the tax repercussions from them deciding "well he just dabbled in that, lets take all the write offs away" 3 years down the road, is really bad.
A good accountant will be anle to explain this all to you, along with the ups and downs of each (DOA is about $15 dollars, one time fee here, where articles of incorporation are about $250 + a $100 a year franchise tax).
Hope I helped a bit
thanks for the help!
im just starting my first web site and am not sure about the legal issues do i need a bissness licenes i doubt i would make over 200 a month this year as i have little experince
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