when to incorporate an online income

5 replies
Hi warriors,

How much money should an online business be earning to make it worth it to incorporate.

thanks.
#income #incorporate #online
  • Profile picture of the author CoachManny
    Originally Posted by Jeremy123 View Post

    Hi warriors,

    How much money should an online business be earning to make it worth it to incorporate.

    thanks.
    I would say whatever your income goal is. Do you just want to pay a few bills? Do you want to pay a student loan?

    My goal is to never get a j.o.b. again. Everyone's goal is different.

    Manny
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  • You don't 'need' to incorporate, unless you are looking for either legal protection or tax benefits. Tax benefits (if I recall correctly) don't kick in until about $250k (or $500k) - so unless you are making that much, you probably don't need to...

    Johnathan
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  • Profile picture of the author MartinPlatt
    I'd be doing it straight away, if you want to grow a business, in that way you are offered the protection of the legal structure right away, and don't need to go through the pain of changing over at a later date, and for what?

    Start with the end in mind.
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    Martin Platt

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    • Profile picture of the author Jeremy123
      thanks for the replies so far,

      I ask this because I have an s-corp, and last year my adsense account was disabled, and ths my income.

      Even though I'm not paying myself now, I still have to do payroll, because once you start you can't stop. $300 every quarter, plus 1200 for year end corporate returns, plus the required payment I get from the irs because of 444 election, and 500 corporation renewal fee.

      I think it is not worth it to keep my corporation.

      The only benefit is protection, from who, no one is going to sue someone who makes money from adsense sites, or affiliate sites.

      Appreciate your thoughts please.
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  • Profile picture of the author Tuan Vy
    Not just about protection, there are tons of tax advantages to being a business entity.
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