When i was first introduced to AM i had the wrong impressions of it. To me it was this thing that if i put my money in it and know technology and the web i will be rich (how is it everyone is not doing this) couple of campaign on POF later started losing money got scared shitless and ran. Fast forward a year i have come to a different understanding. AM is not a side thing (well it can be). It is a business that you are running. At first you may start as a one man shop or two, but over time (depends on how much growth you want) you can turn this into a small company. After realizing that i had a better appreciation for it. As i have always wanted to be an entrepreneur and own many businesses.
So this time around I am approaching AM more as a business, much like i have heard mentioned on the forum to do. Here is where The questions come in. When should you incorporate? Should it be at the beginning or would that be rushing in to fast. Would it better to get a profitable system/campaign going before you do anything. If some of you have read my previous post, you know i am looking for a partner to support me on my short ends, and i will do the same. Now If taking AM as a business should this partnership happen at the business level or just by word of mouth (yeah man let's do this). If i do partner up with someone will it be just s virtual handshake.
Also what sort of business license should you register. I have seen some threads talk about taxes, and how maybe you should register your business here, there, for better protection on your money. For those that take AM serious and are running it as a business, what are your 2 cents. How did you go about it, and what would you have done differently if you were to do it now. I haven't found a thread yet discussing how to run AM as a business (could be me, probably is me) but if this thread can help everyone else that is great.
PS. I am going to hate having to modify all my network accounts with my new business information.
a) S-corp as soon as possible, LLC is another option. Pay someone to file this. This will make accounting and taxes easier.
b) You don't need a partner and I don't know why you're looking for one this early. It shows severe lack of confidence. Of all the successful partnerships I've seen formed, it's usually two different affiliates who are ALREADY profitable. They talk / mastermind for a while to build the relationship. THEN they realize they have complimentary skills and would make more money by working together.
Partnerships should happen naturally. I think you need to step it up and try to get it working yourself first.
Thanks Ngo for the advise. As for the partnership, that came along as i saw more and more people mentioned how forming a partnership in the beginning to bounce ideas off, and playing off each others strength and weaknesses and running the same campaigns/vertical together can be a big benefit. I have never thought of partnership before but as i read that advice more and more i came to think that this maybe one way to go about things. I can't deny your advise, you do have quite of bit of wisdom in this industry.
Also for the S-corp filing did you have someone local or an online agency do it, if so do you recommend anyone.
Bigmike,
I'm starting out just like you and I researched whether to incorporate or not in the early stage. What I did was open a business bank account. You can do so as a sole proprietor and you can get a business debit and/or credit card. I'll be using this account for getting paid and for all business expenses. This separates business money so when I get my taxes done, if IRS wants to see documentation, I can show them my business bank account statements.
I did this since I didn't think it was necessary to incorporate before making good money but I will definitely incorporate when the time comes.
And Dr Ngo, your blog rocks!
It is a business!
Incorp asap to save money on taxes. You may hit a big campaign and you'll thank yourself if you do.
Save a partner for later in the game, it's too soon.
Thank you for all your input. As a last inquiry where do you recommend i incorporate for better tax leverage (Keep more of my money). I have read many threads giving advice on this. I live in the U.S Should i incorporate in the State i live in or another country?
I think you'll need to ask your accountant, you'll get too many random answers from self proclaimed accountants here. A good US accountant will tell you where to incorp and how based on your business.