I am getting closer and closer to realizing my goal of becoming a web business owner. I am both excited and apprehensive of course. I wonder if I will attract my target audience, if what I post is seen as helpful, and lastly, if I will be able to sell products that I feel passionate about.
With that being said – I need to consider the ‘not so fun stuff’ such as Licensing, Taxes (arrrghhh) and the Legal Structure of my online web business. The legal structure influences the way I file my taxes. One the one hand if I decide to incorporate, I will need to spend more money up-front to get the proper paperwork submitted so that I can procure the proper licensing and certificates that an incorporated business would require. Do I want to do that? No. I don’t.
So that leaves 2 more options: either setup a Limited Liability Corporation (LLC) or a Sole Proprietorship. The LLC structure makes sense if I had a business partner that could help shoulder the burden of any setup costs and help in running the business, but I do not have high setup costs, and I am not sure I am quite ready to be in business with myself let alone a business partner. So that leaves the one option left.
The legal structure of Sole Proprietorship (SP) is really the best business structure for me because it is just me – the ‘sole’ business owner. I own it and I run it as I see fit. I do not have to produce a lot of capital to start and run my business. I do have to put in some long hours to get and keep my business website relevant and in front of my target audience though. Having some help in that department would be the one benefit of using the LLC or Corporate business structure, but the Cons outweigh the Pros in that regard.
Lastly, as an SP I am able to file my business taxes right along side my personal taxes on the same 1040 form. This is really a great advantage because filing taxes is never fun. I have had SP businesses before as an independent representative of various MLM companies and did not have an issue with taxes, but I will be (hopefully) receiving commissions from affiliate Ads and that is a new thing altogether. It will be interesting to see how well my business does in that regard. I have heard that it takes a long time to get a following so I may not have to worry about it very much for the next few tax seasons.
Stay Tuned!
SilverDiva Online 