Solo or LLC/S-Corp?

Bareback or Ribbed?

  • Bareback all the way (i.e. Sole Proprietorship)

    Votes: 14 11.9%

  • I use Protection (i.e. S-Corp or LLC)

    Votes: 75 63.6%

  • Not now, but I want to protect myself soon.

    Votes: 29 24.6%
  • Total voters
    118
  • Poll closed .
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Spliffic

Spliffic

Loves Cron Jobs
Apr 5, 2008
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Just wondering how many of you are going bareback versus wearing a rubber for protection? With all the rebills and FTC talk etc, I'm currently in the process of setting something up for myself asap, just wondering how many of you have protected yourself.

There would be nothing worse than losing your house and everything you worked for over that crazy fat chick that didn't actually lose weight from the shit you sold em. At least that's my take, I'm sure many of you will come up with worse scenarios....

Anyways let's hear it.
 


S-corp with LLC and foreign holding company for those that make millions ;) just pay your taxes
 
If you do incorporate, make sure to read a good book about it or, ideally, talk to a tax accountant and a lawyer. Between my online ventures and my wife's, we have one c-corp and one s-corp. An s-corp is just a corporation that incorporates and then files a simple form with the IRS, but it completely changes the way your taxes work.

S-Corps have great tax advantages, but because of this, the IRS also places a lot of restrictions on them - i.e., if you own more than 2% of the stock in your s-corp (which you will) you can't give yourself certain benefits; health insurance is the biggest pain in the ass that comes to mind first, you can do it, but it then changes how you do your W-2 and personal tax return.

However, don't let all this keep you from incorporating. As long as you follow some basic rules and requirements, it can go a long way towards protecting your personal assets if the shit does hit the fan. Oh, and qualifying for a mortgage as a sole proprietor is a major pain. If you're incorporated, you'll have a W-2 and a paystub just like any other employee of a corporation, so it really simplifies documenting your income.
 
All my stuff is done under LLC's, but it depends on the situation. For most new ventures an LLC is usually the way to go. It's cheap, easy and offers a lot of flexibility.

I would definitely avoid going solo under your own name.
 
It's actually a goal of mine to incorporate sometime in 2009. I'm still trying to find an accountant to do my 2008 taxes too so I can drill them to hell with questions on everything.

My vote: Not now, but I want to protect myself soon.
 
If anyone has a good lawyer to talk to about creating holding companies and subsidiaries, please pm me. thx.
 
Let's say I made 10K for Jan 2009. Then I created an S-Corp in Feb 2009. I assume that the LLC "protection" would not cover the sales I made in Jan? For instance, if that psycho biznatch that bought berry pills in Jan goes after me, would I be protected under the LLC? Or would I not be because I made the sale while I was a sole prop?

I am actually meeting with the accountant tomorrow to setup the LLC, so I'm going to take what I read here with a grain of salt. Just curious though about all this stuff.
 
Spliffic said:
Let's say I made 10K for Jan 2009. Then I created an S-Corp in Feb 2009. I assume that the LLC "protection" would not cover the sales I made in Jan? For instance, if that psycho biznatch that bought berry pills in Jan goes after me, would I be protected under the LLC? Or would I not be because I made the sale while I was a sole prop?

I am actually meeting with the accountant tomorrow to setup the LLC, so I'm going to take what I read here with a grain of salt. Just curious though about all this stuff.
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I'd ask a lawyer about this. If we were talking about revenue made from directly selling a product, it might be a bit clearer, but as an affiliate marketer, you're providing a service. My guess is if you provided the service as an individual in January, and you the money was paid to you as an individual in January, you're not protected.

Now, if you haven't been paid on it all yet, I'd get the LLC setup ASAP and ask the networks to switch your payment info to the company's name ASAP. You at least have a better chance at being protected that way. But I'd still say it's a slim chance. When it all comes down to it, it just depends on how good your lawyers are versus how good their lawyers are if someone does sue you. I'm sure an excellent lawyer could find a way to go after you as an individual even after you incorporate if there was enough money involved.

Of course, like you mention - take anything you read here with a grain of salt. Also, try to find an accountant and/or lawyer (ideally and) who is at least Internet-savvy, if not actually familiar with affiliate marketing. It'll make things much, much easier.
 
Hello friend,

I think it good to have incorporate in America. I hear people get much money from lawsuit that no make sense in America. Like person who spill coffee to hot from McDonald by accident on self and get $1 million. Maybe opposite can happen to and spill soda to cold and get $1 million as well.

So if sell product you say work and no work you can lose $1 million to.

Good luck bro
 
sumitdhawan09 said:
Hello friend,

I think it good to have incorporate in America. I hear people get much money from lawsuit that no make sense in America. Like person who spill coffee to hot from McDonald by accident on self and get $1 million. Maybe opposite can happen to and spill soda to cold and get $1 million as well.

So if sell product you say work and no work you can lose $1 million to.

Good luck bro
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i love you
 
Sumit good to have you back brotha. And some great advice to boot.

Because you endorse incorporating, I will do so....
 
The main reason LLC's were formed were to protect partnerships and allow a corporation partnership tax status. I'm in NY, LLC's are astronomical with fees. In NY you also need to have your LLC published in a approved news paper or journal. Not doing so will open you up to liablity and you will lose the corporate veil of protection. I would strongly advise you to speak to a accountant or a attorney but most lawyers don't know shit about taxation.
 
Ya I'm up in Canada so the corporate structures, taxation and liabilities are quite a bit different up here. I'm gonna talk to a chartered accountant tomorrow about this and get everything setup properly.

I just wonder how much whoopass the FTC or government can really hand out to affiliates who promoted via a blog lander?
 
Spliffic said:
Ya I'm up in Canada so the corporate structures, taxation and liabilities are quite a bit different up here. I'm gonna talk to a chartered accountant tomorrow about this and get everything setup properly.

I just wonder how much whoopass the FTC or government can really hand out to affiliates who promoted via a blog lander?
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probably a lot, if they really want to.
 
can you really be responsible for a blog? dont the fat chicks sue the company thats rebiling and selling rather than the affiliate whos pushing it?
 
Mike619 said:
can you really be responsible for a blog? dont the fat chicks sue the company thats rebiling and selling rather than the affiliate whos pushing it?
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I think what you can be liable for is the false advertising on your blog.

like all those fake review sites you see everywhere.
 
I know absolutely nothing about law, but if you have diet blogs and their only connection to your one man LLC is that you are getting affiliate payments to it, couldn't you get sued/fined/whatever personally?
 
kingrage said:
I know absolutely nothing about law, but if you have diet blogs and their only connection to your one man LLC is that you are getting affiliate payments to it, couldn't you get sued/fined/whatever personally?
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Yes up in Canada, if you are the only shareholder in your one man corporation, you are personally liable for all debts and liabilities.
 
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