Hello all, My hobby site has grown to the point where I think I should start thinking about actually setting it up as a business. The main reason is that the site is actually profitable and I have been contacted by a few large advertising agencies who require actually proof and won't just cut a check to me personally. Now this whole area is brand new to me. If I understand things correctly I can just get a DBA (i'm in MI, USA) which will suffice and make things such as taxes quite simple. I do have quite a few expenses that I would like to write off. I also have a few writers that I currently pay out of my own pocket monthly. I guess I am just looking for some direction from a few folks who have made this step in the past. Any information you can provide will help me out.
Hey there madk, That's awesome to hear that you're turning your hobby into a business. It's even better that it's already profitable! A lot of people online never make their first $$... But I'd recommend you get a LLC for protection purposes, especially if you have a lot of personal assets. I'm not sure about MI, but it was very easy to set up in my state. Also for Tax purposes, I'm not sure in MI either, but here, LLC's offer no tax advantages. Just the liability protection. But the benefits of the ease of set up. (All you need is to file the paperwork, and get a Tax-ID #) and the low start up costs. It would have cost triple the amount here in CT to get an Inc. I'd recommend you check out your state's website, they should have all the information you need there. Also the Small Business Association (SBA) have valuable information on this field. Also disclaimer, it's best advice if you get help from a professional lawyer / accountant / tax specialists.