Comments on: Five Terrible Reasons You Failed To Incorporate Your Online Business

By: GetQualityTraffic

GetQualityTraffic — Thu, 13 Aug 2009 22:01:24 +0000

Great information, as someone new to making money online I have been wondering what I need to do as far as creating a corporation or other such business entity. You gave some great reasons on why I should get something done now.

By: Jennifer Moore

Jennifer Moore — Thu, 18 Jun 2009 14:50:48 +0000

My company is small–just me, not much income right now–but I formed an LLC immediately. (I’m in Maryland.) Having recently had some personal financial difficulties (big ones,) I wanted to be sure I’m protected if something should happen. Liability insurance is in my future, once business picks up a bit.

It was $140 to get set up, and it’s $300/year to renew it. I don’t see that as a huge expense, considering the benefits.

Great post.

By: Melvin

Melvin — Mon, 08 Jun 2009 16:27:33 +0000

Great writing style. I myself is really having some difficulties of choosing between LLC and s-corp

By: Mike Wasylik

Mike Wasylik — Mon, 08 Jun 2009 14:22:40 +0000

Genevieve: You’re correct that California puts a much higher price on doing business than almost every other state in the union. That is, I understand, one reason so many Californians set up their businesses in Nevada.

As far as protection of personal assets via an LLC, I pretty clearly stated that every state treats LLC’s differently. California is one such state, and I for one wouldn’t do business there because of it.

By: Genevieve

Genevieve — Sun, 07 Jun 2009 18:00:12 +0000

My tax person here in CA advised me that there’s an $800 per year filing fee here in California to file taxes as an LLC. Worse if you’re a corporation.

I’ve also been advised by multiple reputable sources that an LLC does not in fact protect your personal assets if you get sued. Liability insurance is the only way to truly protect your assets (business and personal).

So a sole proprietorship with liability insurance is the most efficient way to go, from what I have been advised, here in California.

I’m just a gardener, but I’ve looked into this quite a bit here and I don’t think the blanket statements about LLC’s you make are completely accurate (for CA at least) – at the very least there is professional disagreement on it.

By: Colonizing Other Blogs — perpetual beta | release

Colonizing Other Blogs — perpetual beta | release — Sun, 07 Jun 2009 03:09:26 +0000

[...] And number two is up as well: Five Terrible Reasons You Failed To Incorporate Your Online Business [...]

By: Mike Wasylik

Mike Wasylik — Sat, 06 Jun 2009 14:49:17 +0000

Lisa, depends on your facts. Generally, most lawyers advise forming your entity in the state you’ll be doing business in. You could start one here, or one where you’re going, ot both, or start one here and then a nnew one later. Mostly depends on your risk tolerance.

JR, an s corp is treated the same in every state but an llc is not. Sale of goods exposes you to suit elsewhere, but enforcement would still be here, so either one is better than nothing. If you want to expand into other states you might find a corporation more suitable.

By: Chuck Rosseel

Chuck Rosseel — Fri, 05 Jun 2009 22:40:20 +0000

Excellent advice. Heck, even the Singing Naked Cowboy (Times Sq. street performer) is incorporated.

By: Shannon Herod

Shannon Herod — Fri, 05 Jun 2009 22:09:38 +0000

fantastic post. Is a topic that is rarely discussed in our industry, but a topic that needs to be discussed. Most people are out there are running blind with no protection at all. Unfortunately, I think it’s because people are building hobbies and not businesses.

People look at their Internet business has an extra money maker. Something they’ll do on the side to make a little bit of extra money. Most people don’t really look at it as a true business.

By: Caden Grant

Caden Grant — Fri, 05 Jun 2009 20:26:03 +0000

Great post I agree. I’ve been seeing more about this topic lately but I still think it’s not considered enough by most people. Great work.