GARY LEE |
08-23-2011 12:04 AM |
This is really an attorney question and even depends on your state so an attorney from my state of California might not give you the best advice.
Getting down to basics it is better to incorporate for tax purposes if the income from your site will be substantial. Usually a new site won't be that lucrative, not trying to sound pessimistice just being real. A corporation will pay $800 even if it operates making no income. My first year in business I was lucky to break even. Server fees, equipment costs, commercial office rental, and the list goes on and on. By operating with a privately held DBA you don't pay that $800 every year.
If your assets are very substantial and you think you might be sued then you might think about a corp. If Manwin wants to sue you for stealing their content (LOL) then all they can get is your company, they can't come after your house, car, and first born.
After you decide to incorporate then you have to decide about c-corp, s-corp, or LLC. Are you getting it now? Talk to a lawyer in your area.
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