Recommend a Business Entity for Affilaite Marketing

R

rgrinny17

New member
Sep 14, 2009
8
0
0
Alright Fellows,

In the spirit of tax season, I would like to propose the question of what the best business structure is for setting up your Affiliate Marketing company? I would assume its a battle between an LLC and S-Corp.

Id just like to get some input on what a majority of people are using and what entity represents the best tax savings and maximization of profit.....Additionally, anyone favor a particular state to incorporate in?
 


no one ever seems to consider c-corps.
15% tax off your 1st 50K
Being able to define your tax year.

yeah, the big downside is paper work, like keeping meeting minutes, etc.
 
cachemoney said:
no one ever seems to consider c-corps.
15% tax off your 1st 50K
Being able to define your tax year.

yeah, the big downside is paper work, like keeping meeting minutes, etc.
Click to expand...

S-Corp has the same paperwork I think, and C-Corp doesn't make sense unless you have a lot of outside investors, venture capital, plan to go public, etc.
 
I've been in business (but not in marketing) for 11 years and I've heard this question countless times. And the answer is always the same - there is no best. Pick one, form it, move on.

For aff. marketing - You are a marketing company. Separate yourself from your business. Get a separate tax ID. Become an S corp and be done with it. If there is overwhelming reason change it later.
 
LLC S corp seems best to start, works ok for me. You can later convert to a c corp I believe also when you have tons of money you want to leave in the business and get investors and other things you probably won't need for a while. Anyway talk to a professional about this shit.
 
LLC's are much less of a headache!

Here is something to think about:

Let’s say you want to have several of websites in different categories and you want to be able to group them into a few or more entities (for whatever reason such as you want to sell one of the LLC & it’s websites at some point – but not the other LLC’s, different AdSense accounts, reduced risk, etc) but you don’t want the headache of multiple tax returns.

This is where LLC's are great, but I’m not sure how it applies in all states. You could setup one single member LLC that owns the other LLCs. In some states even if you are married and both you and your wife own the main LLC – it can still be treated as a single member LLC. All the other LLCs under it for tax purposes roll up into the one main LLC and depending on how things are setup everything can be done on your Schedule C.

So No Form 1065 (Partnership/LLC) – all on the Schedule C.

Of course there are so many things to consider - your mileage may vary.
 
This is a great thread.

But I'm located in Canada. Don't have to pay business tax unless I'm making more than 35K on that said business (day job income not included). I want to start a corporation but not sure how to proceed. I don't think we have LLCs or S corps here. I know that some Canadian AMs register LLC in the US (Arizona usually. Dunno why) but my question is what is the Canadian equivalent of LLC?
 
Arizona usually. Dunno why
Click to expand...
The scenario I decribed above is based in Arizona - but I'm not sure if any or what other states it may apply in. I don't believe all states allow single member LLC's, but I'm not sure which ones do and which ones don't.
 
don't get advice on this subject from the internet, especially a forum. get a good accountant who is local to you. if you don't have one already, ask other business owners you know for recommendations.

The differences between an LLC and S-corp vary from state to state, so even if popshit34 on wickedfire says LLC is best, the same may not hold true in your state and in your specific use case.

I agree with patrick24601's advice of picking one and moving on. asking people for advice or to do your homework for you, make comparisons, etc is just like running in the clownshoe race of the special olympics. it is time you are wasting when you could be running and growing your business.
 
If you're doing anything risky I suggest asking your attorney about an LLP (Limited Liability Partnership). Set up a loyal friend or family member as the Managing Member/Partner, and you can have unlimited LLC's under the umbrella. Funds travel up from the LLCs to the LLP. If theres a fire that hits one of the LLC's, it stops there, and doesn't travel up, IF you set it up properly.
 
I prefer S-Corps for many ventures. My online stuff is currently LLC's.

Get a lawyer. They exist for a reason.
 
You must log in or register to reply here.
Top Bottom