When should I start a company?

**Romestar** · 07-12-2006, 10:45 AM

I make around $2,000/year off the internet from various services. A few months ago I talked to my dad about how I have to pay taxes and stuff because of the money I make. When would it be an advantage to start a registered business (LLC, etc.)? I don't know a lot about it, so any info/advice would be useful and appreciated. Thanks.

**chihpih** · 07-12-2006, 11:14 AM

imo you need to earn more then that to have your own company. to register an llc it will cost you a few hundred dollars (if you use a service to do all the paper work for you), cpa to do your taxes if a few hundred dollars as well.

**Zen** · 07-12-2006, 04:15 PM

I'd say wait a little while until you incorporate. When you're making $2000 per month instead of per year, then you'll want to start thinking about it.

**imported_yuppie** · 07-23-2006, 11:23 AM

Why do you need a company? Why don't you just develop your online business? It is much cheaper.

**imported_Alexis** · 07-23-2006, 11:31 AM

You generally start a company to protect yourself from liabilities. Generally, without a corporation or LLC, if your business gets sued, you could have personal liablity. look at state laws governing the corp or llc for the rules.

Alexis
http://www.AmericanInventorSpot.com

**swoop** · 07-23-2006, 02:17 PM

I agree with others, it's too early to officially start a company. I believe you can file Schedule C with your (United States) IRS tax return and gain the advantages of deducing expenses, without having an "official" company.

**Tran** · 07-23-2006, 03:06 PM

When you start making $xxx,xxx start a company

**james2** · 07-23-2006, 03:10 PM

Being incorporated means double taxation. sole prioprietorships = less taxes.

on the net, you don't really have any liability... so, no point. LLC and S-Corp for brick and mortor.

Pick up a nolo press book and read about it

**imported_Alexis** · 07-23-2006, 07:41 PM

Remember that a C corporation (vs a S corporation) is not your only option. You can set up a one member (you) LLC and it should protect you the same as a corporation and you will be able to report it on your own tax return just like a sole proprietorship (no double tax). Check your state and make sure your state has one member LLCs (I think most of them do) and that its treated as a pass through entity.

Alexis
http://www.AmericanInventorSpot.com