5K Revenue/month - Should I LLC?

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Xenon

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Hello,

I've just been doing PPC for a few months now, and I have reached around 5K/month so far.
Up 3K so far, so I might hit 6K this month!

Half of that [100-80% ROI] is profitable income each month, so I was wondering about tax, etc.

Is it time to LLC?
I am 17, so would this be a problem when I go and form?
I don't think I make enough for a corp or anything, but I am taking AM and PPC seriously, and I am really wanted to grow.

I read a few comments that you should pick an enity based on your business, and where you see it going in the future. I am just funding my PPC with moms credit card, and last months earnings as I am on net 15 with Hydra.. Great tracking and payouts though!

Thanks for any input, fags.
 


Good work man, congrats on the earnings. I would, however, wait til you're 18 to incorporate. I imagine it'd make the process a lot easier.
 
AMagz said:
Good work man, congrats on the earnings. I would, however, wait til you're 18 to incorporate. I imagine it'd make the process a lot easier.
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Thanks!

Yes, I turn 18 in Febuary, so it's just a few more months away.

I thought about having my mother or father set it up, and they can trasfer ownership to me once I am 18?

As the niche I am, I don't see it going anywhere.. so I see my campaigns there a few months from now. So I am worried my earnings are just going to accumulate, and I won't have tax befits that I would have has, as I am doing all this under a sole proprietor; my name.
 
Get it off your name. Get it off your name.

You are 17. Even in a worst case scenario, you are invisible to the legal systems triggers/flags for things like sudden fluctuations in income. You don't even file into macro reports because you are a minor.

What state do you live in? You can find specific information on your Secretary of State website. You may even be able to file for LLC at age 17. This rarely happens and you will likely get put in a refiling loop until you turn 18, and get stuck in that loop until a knucklehead entry level gov't employee somehow has the knowledge to take you out.

And that's a good thing. That would make anything you report that year cycle back to you in the return of capital return because of a "for the filing duration" clause. You can hypothetically be stuck in a refiling loop forever because of how grey our legal system is with people under 21, ESPECIALLY under 18.

I'm getting way ahead of myself, here.

Get back to me on what state you're in and I can help you out. Reply to this thread so other readers can benefit.
 
By the way, I didn't even answer the question because I got excited there for a second.

I don't suggest that you file LLC for solely your PPC gains unless you plan on directly interacting with advertisers soon. If you're just dealing with affiliate networks, you are a derivative of their business, which has many beneficial meanings. Further, you can file your income as derivative commissions and not direct taxable income.
 
Mahzkrieg said:
Get it off your name. Get it off your name.

You are 17. Even in a worst case scenario, you are invisible to the legal systems triggers/flags for things like sudden fluctuations in income. You don't even file into macro reports because you are a minor.

What state do you live in? You can find specific information on your Secretary of State website. You may even be able to file for LLC at age 17. This rarely happens and you will likely get put in a refiling loop until you turn 18, and get stuck in that loop until a knucklehead entry level gov't employee somehow has the knowledge to take you out.

And that's a good thing. That would make anything you report that year cycle back to you in the return of capital return because of a "for the filing duration" clause. You can hypothetically be stuck in a refiling loop forever because of how grey our legal system is with people under 21, ESPECIALLY under 18.

I'm getting way ahead of myself, here.

Get back to me on what state you're in and I can help you out. Reply to this thread so other readers can benefit.
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Hah, thanks man for the information.

I live in Michigan.
 
Mahzkrieg said:
By the way, I didn't even answer the question because I got excited there for a second.

I don't suggest that you file LLC for solely your PPC gains unless you plan on directly interacting with advertisers soon. If you're just dealing with affiliate networks, you are a derivative of their business, which has many beneficial meanings. Further, you can file your income as derivative commissions and not direct taxable income.
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I belive I will not be going direct anytime soon. I've just been in the game for about 2 months now, and things have really taken off, but I am not that large.
 
I wanted to ask.

When you state "Get it off your name. Get it off your name", how do I do this if you say.

"don't suggest that you file LLC for solely your PPC gains unless you plan on directly interacting with advertisers soon."

Are there other ways I could go about to get it off my name? Unless I am missing something.

This is all new to me. I did some SEO in the past, and sold some virtual gold, but never really reported or vented about it as it was just transactions here and there from PayPal, and I was like 15-16 at the time. I made a decent amout, around 6K during that year.

I have been looking and search around for information about forming an LLC when a minor, and I was unable to find any information. However, I shall continue to explore.
 
I am for 'gaming' the system. So this information is all very intersting. It's my money, not others. I can understand paying a small tax just to support police officers, firemen, and other things I will use and don't mind helping. But there is so much bad spending now a days, you don't know where your money is going..
 
Personal opinion here --

anytime you want to shave a bit off the federal governments lead pockets, I would suggest you don't post such actions on a public website. I'm a bit older than you, and have been screwed over a few times by people that -appear- to be friends...

A small business owner i know is always telling everyone that comes into his deli that he is ripping the govt out of tax dollars by not reporting a majority of his cash transactions. I always nod and laugh -- someday he's going to get ripped -- not because he does it, but rather, because he talks about it.
 
Never mess with the government - they can circumvent documents a couple hundred years old on a whim and there is no recourse for you. None.

If you are making $X,XXX per month, it is well worth it to take one month of that money and go talk to a lawyer and accountant to get you set up correctly for the future. I know it sucks to stroke a check like that, especially when you're 17 but you'll thank yourself when you're 25 and loaded. What's even better is you won't have that black cloud of risk that your success could be all taken away by one litigious douchebag or vigilant government employee.

oh, and btw,

I am for 'gaming' the system. So this information is all very intersting. It's my money, not others.
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I understand your rationale, but it's wrong... as in you'll be proven wrong in court. Ask Wesley Snipes. So long as you live in the USA then it's not your decision as to what is a fair percentage. If you disagree then there is a convoluted political process or kick a__ accountants who can even the score for you. Otherwise you pay your share, regardless of whoever is not, and go make your money in peace.

Bitches about taxes are like bitching about the water bill. Just shut up and pay, because you won't last 3 days without it. :)
 
I would form an INC. You can distribute income between the two to reduce tax burden. From what I remember an LLC passes the revenue/income to the owners return... Keeping the full tax liabilities on a single party.
 
Liability protection is just as much a benefit of incorporating as the tax benefits. There actually aren't very many tax benefits vs sole props anyways (you can still write-off the same stuff), so I'd look at it from a liability standpoint first. Either way, I don't think you should inc til you're at least 18 or really have a legitimate need to do it.

Congrats on the breakthrough.
 
The networks are going to send you a 1099 anyway, might as well be in the corp's name than yours so you look legit and can claim deductions. Just be careful how you distribute money to yourself because some states will make you pay payroll taxes.

As always, C.Y.A. and call a C.P.A., don't ask any of us.
 
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