I am curious to how everyone deals with their finances with all the different websites they run.
I plan on having e-commerce sites, niche content sites, niche resource sites, etc.
How would I setup my business entity?
I have to setup the following accounts:
Lease a Dedicated Server (web hosting company)
PayPal Account (wanted to use for all sites, but then email would be different)
2checkout Account or Merchant Account (1 account for all sites or 1 for every site)
P.O. Box (1 account for all sites or 1 for every site)
Business License (1 Busienss License for all my online ventures, or 1 business license for every site)
I am serious about making some money online and am taking this seriously. I would like to know if I should just wait till I profit to setup my business license or should I set everything up now before I start to profit.
I would like to know what other big earners on this forum do for their business license.
If possible, any other help on 'Having employees' & 'tax benefits for either entity' please let me know.
I hear this question SO much from my clients nowadays! I've gone through this with so many people on the phone that I can do it in my sleep.
The best way, imo, to approach this is to put together some notes with the following information:
1) Your current situation - your current income, your tax filing status, level of financial stability (i.e. do you have capital to use, etc.), and you level of experience with bookeeping, record keeping, and tax matter
2) A realistic projection of your revenues and expenses (as best you can predict) for the next 1,3,5 years. Be realistic, but not pessimistic.
3) Your plan as far as getting professional services - do you have a CPA? are you planning on getting one? This can be a very telling question.
Write it all up, then ask your question again to a CPA or qualified business advisor. With some actual numbers in front you, you can get the RIGHT answer and form the business entity that will best fit your situation. Many people rush into things, only to find that they should have waited two years because they wind up losing money due to the overhead of a corp/llc. Others simply act upon knee-jerk advice (usually a forum participant blindly suggesting that everyone setup an LLC) and later find that they should have setup a different entity.
A CPA can actually DO THE MATH and tell you exactly which structure will give you the most benefit.
Note the California is a particularly tricky state because the fees are high, and the FTB is ruthless! If you get sloppy, you'll pay bigtime! It's great that you are asking around for advice - keep doing research and you'll figure out the best way to go..
The fewer our wants, the nearer we resemble the gods. — Socrates