Should I form a business for my websites?

So I've got two websites that as of recently started bringing in a bit of money. It's only about $300 a month but its all passively through Adsense. I don't sell any products and I don't spend anything to advertise. I was wondering if there are any benefits to setting up an llc or other legal business structure and transfer the website ownership to it. My main concern isn't personal liability, I want to know if its worthwhile for tax purposes rather than just having the websites in my name.

I realize that I would have to look more specifically into what amounts are tax deductible by state ( I live in Washington state). However, does anyone have any general knowledge about owning a business that solely brings in Adsense revenue? 300 a month isn't much but I plan on increasing it and hopefully making closer to 10k next year. I want to make sure I get the most tax deductions as possible.

Thanks!

 

The cost of incorporating is negligible and as a sole proprietor LLC the income is treated as 'pass through' which means your paying tax on it as an individual anyways. A good accountant should be able to get u all the same deductions with as without a LLC and you don't want to go down the C-Corp path yet, the added expenses and paperwork. The only real advantage the LLC provides is Liability shielding, so you've really gotta ask yourself 'am I do anything that someone might sue me over' ... ? The LLC would shield your personal assets, but only to a point as your a sole proprietor you can also be accused of personal negligence which opens up all your personal assets ... so you really need to weigh up your needs ... (oh and get REAL legal advice, I've only had to go through the process a fe times and have learnt what I needed to about the process)

 

tax laws are different in different countries. my suggestion is, instead of looking for tax advice on the forums, talk to your accountant who does your personal tax.