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
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...
I love you so much...