Actually...operating expenses of the corporation should always be taken care of in the amount KEPT by the company offering the affiliate program...i.e. the 25%. If George owns the site AND is going to profit from the work of an affiliate, I am not sure that makes sense. I understand the Diamond program is being offered...but my assumption was that was given in order to allow the team here the flexibility to really rev up sales for IWI.

what's everyone's feelings on a legal document at this point? I think after our meeting I feel comfortable without one for the time being. If and when we decide to make this a legitimate business I think that will be the time for some legal papers.

George, you mentioned wanting to eventually incorporate the company. This is my first real taste of a team atmosphere online, so I don't know a lot about the legitimate business end of it. If you could explain it to me and anyone else that is not sure of the process and benefits of an incorporated company that would be great!

Setting up an incorporated company allows us a number of benefits including reduced taxes and Limited Liability exposure for us personally. You know, if some one wants to sue us or something. As well, we each get an equal share in the company and can share the profits after expenses

To setup an LLC in the US (ie. in Nevada) shouldn't cost anymore than a few hundred bucks. So when we make our first couple of sales we should look at doing that. In addition, incorporating in the US, will save us Canadians and Steve in the UK from the hassles of reporting Sales Tax such as the GST/PST and the VAT.

Once we get to that point,we can discuss in more details and how it will affect your personal income tax.

George

Thanks George. I absolutely love the fact of making this partnership a legal and professional entity. Once we start getting some sales we'll get into it a bit deeper.

I am pretty familair with them as well...I often use legalzoom.com to incorporate...it IS important from the protection side...as is insurance...let's make some sales and then we can worry about that stuff. I am ready to rock and roll!

Mac