At what point do I need to register my affiliate marketing as a business? i've been making some pretty good cash now. I'd like to start writing off some of the computer equipment and software that i bought for the business.
As far as I know (at least in Canada) you get a tax shield from computers and computer equipment even if you have your own business, even if it isn't incorporated. I think you can call your business whatever you want - it's only if you want limited liability that you'll need to form a LLC or an LLP.
You can register it at any time... and write off pretty much everything you spend on (computers, equipment, software, advertising, research/testing, etc). Hit me on aim, i'll explain how I did it.
I think protecting your assets is the #1 reason Right now, as a sole proprietor (which is what you are), if you get in some sort of legal trouble with your online business...Trademark violation, copyright violation, libel, etc...It could be anything, but if you get sued and lose, all of your personal assets can be taken to pay for it (house, car, stereo, everything). If you register yourself as a business, you protect your personal assets, so if you get sued, all the court can take from you is your business and business assets. You may be out of business, but at least you still have something. There are other reasons to incorporate, but I think that's the biggest
GTAce is correct. They can take you for everything you have. It is definitely better to register your business name and even better to register as an LLC ( Limited Liability Corporation)
Great Post.. When things are OK... you might find this time consuming... But if you get into any legal trouble... you'll thank yourself that you are separating personal belongings from your business assets. Tim