Online Business Affiliation
What Type Of Business Entity Should I Be ? Who Should I Talk To ?
I live in Illinois, USA, and have a series of websites ranging from drop ship sales, entertainment weblogs, and soon to be internet radio stations. All business is done online. Income comes from Drop Ship Sales, Affiliation payments, and Ad space sales.
Where do I start to make sure the IRS doesn’t knock down my door? Do I become Inc? Sole proprietorship? Something else?
Who do I need to talk with?; lawyers, local office, state office
Thank you so much for the help in advance !
There are pros and cons to each type of entity, usually related to tax obligations or liability exposure. You should talk to an attorney or accountant to examine your individual circumstances.
In general a sole proprietorship has the least tax obligations but leaves you completely exposed personally for the liabilities of the company. Corporations have the most regulation and highest tax obligation by little or no personal liability exposure.
A middle ground where I would suggest you consider is the Limited Liability Company (LLC). In most states it provides with a lower regulator and tax obligation then with corporations but provides the liability protection.
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