Benefits of creating a business

Discussion in 'Legal Issues' started by LanceT, Feb 19, 2007.

  1. #1
    Are there any benefits to actually registering your website as a business? If so, can you name them?
     
    LanceT, Feb 19, 2007 IP
  2. DomainLoot

    DomainLoot Guest

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    #2
    offsetting certain expenses against REVENUE.
    LIMITED liability if setting up a corporation.
    coprorate tax rate may be LOWER than personal tax rate.

    IMHO :)
     
    DomainLoot, Feb 19, 2007 IP
  3. Codythebest

    Codythebest Notable Member

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    #3
    You need to produce though...Make no sense to set a LLC up for a site getting 2 bucks/month with adsense...See what I mean?
     
    Codythebest, Feb 19, 2007 IP
  4. eddy2099

    eddy2099 Peon

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    #4
    Some countries require you to register a business, be it a sole proprietorship / partnership or corporation.

    If you are doing it on a full time basis and serious about it, a business identity may provide a sense of security for the customers.
     
    eddy2099, Feb 19, 2007 IP
  5. overdrive

    overdrive Active Member

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    #5
    It would probably be easy to set it up like a business, especially if you forsee growth potential. It makes it easier on you when it comes tax time and for legal reasons!
     
    overdrive, Feb 20, 2007 IP
  6. Swordfish

    Swordfish Active Member

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    #6
    If it is just you, go with an scorp and make yourself the employer and employee. You avoid double taxation this way.
     
    Swordfish, Feb 20, 2007 IP
  7. snra786

    snra786 Peon

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    #7
    If you create an LLC, does your website logo have to portray that youre a LLC? I thought that LLC have to show the tag "LLC" on all corporate media...
     
    snra786, Feb 20, 2007 IP
  8. eddy2099

    eddy2099 Peon

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    #8
    No, you do not need to include 'LLC' in your logo. You can have anything in your logo. You also do not need to include it in your trade name.

    Look at McDonald's. They are officially McDonald's Corporation but they use their trademark in all their products and merchandizing. Even their logo is just a Golden 'M' and the trademark 'I'm loving It'.
     
    eddy2099, Feb 20, 2007 IP
  9. bccruzer

    bccruzer Peon

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    #9
    question on the side, no hijacking meant
    If I was to become an LLC, could I display the Inc. tag after business name, or only , LLC. ?
     
    bccruzer, Feb 20, 2007 IP
  10. eddy2099

    eddy2099 Peon

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    #10
    If you are a LLC, you can only tag LLC behind your name as that would be your official business name. If you are a corporate, you can registered your name with the INC or CORP. They basically form part of your business/company name when you register it.
     
    eddy2099, Feb 20, 2007 IP
  11. Pixelrage

    Pixelrage Peon

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    #11
    how so? You technically don't need to earn anything...most people just do it to claim all of their purchases as business expenses.
     
    Pixelrage, Feb 20, 2007 IP
  12. mhdoc

    mhdoc Tauren

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    #12
    Hassle factor and cost. An LLC requires its own tax return.
     
    mhdoc, Feb 20, 2007 IP
  13. eddy2099

    eddy2099 Peon

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    #13

    For the start or for a small business such as this, probably it is best to the simpliest business structure and that is of the Sole Proprietorship. You will still be taxed as per your personal income tax and it is simple to comply if your state or country requires that to operate a business, you need to register it.
     
    eddy2099, Feb 20, 2007 IP
  14. browntwn

    browntwn Illustrious Member

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    #14
    Regarding the naming of an LLC. In California these are the rules:

    [The name] Shall contain either the words "limited liability company" or
    the abbreviation "LLC" or "L.L.C." as the last words in the name of
    the limited liability company. The words "limited" and "company" may
    be abbreviated to "Ltd." and "Co.," respectively.

    Content of websites owned by the LLC, do not need to reflect the LLC name. The LLC name should be the owner listed with the registrar.
     
    browntwn, Feb 20, 2007 IP
  15. moneyspeaks

    moneyspeaks Peon

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    #15
    well besides making money, and a lot of it, the benefits to a successful business are overwhelming. The key being "successful business".

    If you are running a failiing business well than it isn't much of a benefit to your life or financial situation is it.

    WEll you have making money, and the overwhelming tax benefits brought on by running your own business. The tax system really is designed for business owners. The more you spend towards your business, the better. Because the money you spend on your business is not at all or is barely taxed. Everything and anything you spend money on that is related to business has a tax right off.

    and when you run your own business, the business' money is your own money, so those tax benefits for your business carry over directly into your life. Its really great to write off plane tickets, new computers, cars, restaurants, rent, etc... it makes your money untaxable (as long as you spend it!!!)
     
    moneyspeaks, Feb 20, 2007 IP