Thursday, November 27, 2008

Incorporate Your Blog, Website, Writing Business in United States in 2009 - I'm going to experience tax savings...


I had the best visit with my dad recently -- a tax accountant with a wealth of knowledge about the advantages of small business incorporation.

Once I shared with Daddy just how much my online writing business is being blessed by God, he told me about the financial advantages of turning the blog / writing / website / webmaster -- whatever you call this I do -- into an LLC, LLP or some other entity:

  • Limits on liability in the unlikely (I pray) event of law suits
  • Building up Social Security wage credits
  • Drawing down a salary -- that, if you do it correctly, I'm reading around the net that it can save you on taxes -- although the personal 2008 tax rates look comparable to the corporate tax rates I've found online
But I've got a lot of research to do.

I want to incorporate my blogging business myself -- so I'm starting with the government's website for United States incorporation rules state by state.

Some people say it's best to incorporate in Delaware because it's easier and there are other advantages.

We'll see if I do it in my home state of Ohio or not.





Have you turned your blog/website/freelance writing business into an S-corp C-corp, LLC or LLP yet? If so, let me know how it goes...






Thanks, Daddy!


I love you so much...

15 comments:

surveillance cameras said...

I discovered the benefits of being an LLC back when I owned a granite countertop business with my husband. By seperating your personal self from your business self you are more protected and get those tax benefits.

tom.schavo said...

Awesome information. I am linking to this post.

Buying used cars said...

I think your daddy is absolutely correct because in this time all world markets passing from difficult situation. And i think Which company have Limited liability it can surely makes profit in this difficult situation.

Clairvoyant Magda said...

Great information! The LLC structure provides a lot of flexibility and complete liability protection. It's sort of a combination between a partnership and a corporation. The corporation is a little less flexible in terms of how it's structured, but it may easier to liquidate a smaller position. An LLP is a limited partnership: you have a limited partner who has liability protection but must not be an operating partner, and a general partner, who is the operating partner but does not have liability protection -- unless the general partner is an LLC or corporation.

alice cooper said...

Is this real?

Glen said...

I registered my blog business as a S-corp 3 years ago. Incorporation is as easy as making a trip to the Secretary of State office in your state and filing.

The one benefit I found was that all of the earning that come from my blog are under a tax ID number instead of my social security number making it easy to separate business from personal income. Additionally, the tax breaks are cool too.

Willow Sidhe said...

Great idea! I'm already incorporated for another business, maybe I can "incorporate" my writing into my existing LLC. Thanks for the information. I'm definitely going to check this out.

blue_eyes said...

Good luck with your LLC system ;)

BM said...

I discovered the benefits of being an LLC back when I owned a granite countertop business with my husband. By seperating your personal self from your business self you are more protected and get those tax benefits. Awesome information. I am linking to this post.

Oliver said...

If this person is a true person, and has actually earned that much just from revenue online, then that really is incredible! I was going to look at trying to make money online with Amazon recently, and I think I'm going to go ahead with it! Wish me luck :)

Lilla said...

This does sound very reasonable. What are the costs involved to register a company as an LLP?

Paula Neal Mooney said...

I don't know, Lilla, but I want to find out how to do this the most efficient way possible.

I'll keep everyone informed.

Florence Flossip said...

I have been thinking about doing this, but currently my blog isn't making any money. It has the potential to make ad money, etc... but it is an anonymous blog. I really like the idea that I could have some liability protection and start to generate some money though.

Get Paid To Write said...

yeah i have to admit the LLc structure was a little better than the others

iris said...

I think your Daddy's absolutely right. If your writing is becoming your source of income, then it's better to separate yourself from the 'business'. The backlash is there are plenty of proper paperwork that may be required of you. In Spore, we can get help from places like http://www.bizcorp.com.sg, a service firm for company incorporation and related stuffs. I'm sure you have that in US too, just need to find a credible one.

Paula Neal Mooney