Registering a Business

Discussion in 'General Business' started by EGS, Aug 4, 2008.

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  1. #1
    I will be registering a business next month and I would like your opinions and views on how I should classify this business.

    The business will be mostly an online business.

    I'd like a brief explanation of the following terms/business classifications:

    - LLC
    - Inc
    - Enterprise
    - and any other one that you can think of

    I really don't know which I should register this business as, and which would be most cost-effective for me. I would definitely like the name to be registered to me and thus copyrighted to me, so that no other business could use my business name.

    I would also like to be protected for my copyrights etc that I establish...such as products and services..

    And most-importantly, I would like to register a business that would have low taxes (I don't even know how taxes and business work). I am based in the US.

    Your thoughts?
     
    EGS, Aug 4, 2008 IP
  2. dlm

    dlm Peon

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    #2
    I think most internet businesses (especially the smaller ones) seem to side with the LLC designation. However, you should definitely consult a lawyer about the tax/legal implications of each. A few hundred dollars on a lawyer sucks, but getting double-taxed or not getting the legal protection you wanted is far worse.
     
    dlm, Aug 4, 2008 IP
  3. camzio

    camzio Active Member

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    #3
    camzio, Aug 4, 2008 IP
  4. hostingspeak

    hostingspeak Peon

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    #4
    Well, for starters, LegalZoom.com is a good place to use to get LLC'd or INC'd. If you want low taxes, either LLC or Class S Incorporate. Here's the differences of those:

    For LLC, all profit/income, gets reported directly on the owner's tax returns. You report it the same way you do your income tax, and you put it on the same form. I'd say it's form 1040.

    Now, for regular Incorporation, they get "double taxed" and by that they technically get taxed twice. When you make money, the corporation has to pay income taxes on it. Then, when the corporation distributes dividends to you, you have to get taxed again on it. So, that same dollar you made before, gets taxed twice before it technically makes it into your hands.

    If you file Chapter S election for Incorporation you don't get the income tax, and it looks a lot like LLC at that point.

    Hope this helps!
     
    hostingspeak, Aug 4, 2008 IP
  5. Barefootsies

    Barefootsies Well-Known Member

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    #5
    I'd recommend an LLC. Make sure you separate your online/business income to it's own business checking account. You need to separate your personal and business completely for full LLC protection.
     
    Barefootsies, Aug 4, 2008 IP
  6. latoya

    latoya Active Member

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    #6
    You can skip LegalZoom and save $139+ by going directly to your state's Secretary of State, Corporations Division (sometimes called Division of Corporations).
     
    latoya, Aug 4, 2008 IP
  7. firefix

    firefix Active Member

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    #7
    direct is always the best approach. The middle man simply is not needed
     
    firefix, Aug 9, 2008 IP