S-Corp/LLC California (5)
- Which is better for IM, S-Corp or LLC? I've heard arguments for both sides.
- I've heard California is not great for affs when incorporating in terms of tax benefits.
Can anyone refer me to a tax/law company that specializes in internet business? Where do you get your business structure advice?
Thanks 
Would you be forming a single person LLC? Regardless of the name it won't limit your liability and you incur extra taxes on your revenue (not income) on top of formation (and future dissolution) costs.
As for S-Corp, if you are a single person, can't speak for protection but I'm dubious.
California sucks for taxes all the way around.
As for S-Corp vs. LLC costs, S-Corp starts to win out after something over $100k income.
Ask yourself why you are doing it. I recommend remaining a sole proprietor if you are a single affiliate.
My intention is to hire and expand, as well as create a favorable tax structure. I'm leaning towards S-Corp, but really would like to speak with a tax/law company that is familiar with the internet aff industry. Lookin for recommendations from the big players here! Who do you guys work with?
Originally Posted by thefalcon
I'm not a big player but I think this is book/s is what you're looking for:
"What Your CPA isn't telling you" by Mark J Kohler
"Lawyers are Liars" by Mark J Kohler
He's both a lawyer and a CPA. He discusses LLCs, S-corps, C-corps, and partnerships. LLC's will give you liability protection as long as you maintain the corporate veil such as separate checking account, not comingling company and personal assets, etc. However, LLC's do not have any tax benefits.
Usually when you're talking about tax savings it's C-corp vs. S-corp that is debated. I've been told by my accountant that S-corps usually aren't cost effective to set-up until you have about $20k in profit. Usually you're able to lower the amount you pay in self-employment taxes through how much you take out from the S-corp via a salary/dividend split.
The accounting firm I use is Kohler and Eyre CPAs. The lawfirm I use is KKOS Lawyers. He's not specific to internet aff industry, but he does focus on entrepreneurs. He recently did a WSO on a video training course he put together about tax strategies. I imagine he's been getting a lot more business from internet marketer's as a result.
You can find his book on Amazon. His accounting firm's website is:
http://www.kohlereyrecpas.com
His lawfirm website is:
http://www.kkoslawyers.com
I believe they will do a free initial consultation with you. Hope this helps.
Thomas
I would suggest a S-Corp. Most CPA's will agree with that too.
Hire a good CPA.
Home > General > Affiliate Marketing Forum