Business Matters

[Johnny Socko]

Hi all. I hope everybody had a great Christmas and is ready to make ton o' cash in the New Year.

I am just about done with my website but I want to make my business legal so I can start taking in money. It has been suggested that I incorporate by someone that is very successful at the affiliate marketing game, but I wanted to benefit from the experience of others that have been doing this also. My questions about this are when you start your business, do you incorporate or do Sole Proprietorship or something else? If you incorporate so you file as an S Corporation? I am in Michigan and know that things can vary from state to state and from those in our neighbors to the north. I also plan to talk to an accountant but thought I would get some advice from those experienced in the internet business.

[Rosalind Gardner]

Hello Johnny,

I'm not a lawyer, so please don't construe this as legal advice.

I didn't incorporate until I saw that there would be a significant tax advantage in doing so. ie. Here in Canada, corporate tax rates are considerably lower than individual tax rates, and my business was earning a sufficient amount for me to want to benefit from the savings.

Until then, I filed as a sole proprietor, meaning that my business income and expenses were filed with my individual tax return.

The biggest advantage to incorporation is the protection of your personal assests in the case of law suits.

For a much better explanation, please visit the .
Company Corporation. The page linked here is specifically about Michigan.

Hope that helps!

Cheers,
Ros

P.S. If you decide to incorporate your business using the Company Corporation, you may first want to join the Company Corporation's affiliate program. Looks like you can save up to $100 in fees by doing so, and I didn't see anything in their agreement that precludes using their affiliate program in that manner.

[Johnny Socko]

Thanks Ros. I do understand that it is not legal advice, just your experience. I like to learn from other's experience but I do plan on talking to an accountant, and would advise others to also.
Thanks for the link. I'll take a look at that.