Yakezie.com - Topic: Incorporating my Blog https://yakezie.com/forums/bloggers-lair/incorporating-my-blog/ Simple:Press Version 4.5.1 Forest Parks on Incorporating my Blog https://yakezie.com/forums/bloggers-lair/incorporating-my-blog/page-3/#p37391 Bloggers Lair https://yakezie.com/forums/bloggers-lair/incorporating-my-blog/page-3/#p37391 Very true JT

]]> Thu, 25 Aug 2011 09:43:50 +0000 JT_McGee on Incorporating my Blog https://yakezie.com/forums/bloggers-lair/incorporating-my-blog/page-3/#p37171 Bloggers Lair https://yakezie.com/forums/bloggers-lair/incorporating-my-blog/page-3/#p37171 Forest Parks said:

I definitely need to look into liability insurance. I'm in England so no idea how it works but when I freelanced as a designer I had liability insurance incase I got a copyright suit or similar against me so it can't be that different.

At least you guys have the "English rule" (loser pays system) for the courts.  In the US, each party pays their own.  Makes it easy to make the courts a money contest.  Total joke, really.  /rant

]]> Wed, 24 Aug 2011 09:59:02 +0000 Forest Parks on Incorporating my Blog https://yakezie.com/forums/bloggers-lair/incorporating-my-blog/page-3/#p37138 Bloggers Lair https://yakezie.com/forums/bloggers-lair/incorporating-my-blog/page-3/#p37138 I definitely need to look into liability insurance. I'm in England so no idea how it works but when I freelanced as a designer I had liability insurance incase I got a copyright suit or similar against me so it can't be that different.

]]> Wed, 24 Aug 2011 06:45:34 +0000 Jackie on Incorporating my Blog https://yakezie.com/forums/bloggers-lair/incorporating-my-blog/page-3/#p37135 Bloggers Lair https://yakezie.com/forums/bloggers-lair/incorporating-my-blog/page-3/#p37135 I would talk to a professional if you want to make sure you're in good shape, but as I understand it in general anyone can be sued, and if your LLC isn't clearly separate from you it would probably not provide protection. My insurance is a bit different since I also essentially sell software, but I would look into liability or maybe an umbrella policy.

]]> Wed, 24 Aug 2011 06:41:58 +0000 MoneyIsTheRoot on Incorporating my Blog https://yakezie.com/forums/bloggers-lair/incorporating-my-blog/page-3/#p36941 Bloggers Lair https://yakezie.com/forums/bloggers-lair/incorporating-my-blog/page-3/#p36941 @Jackie... so my assets can still be hit even though I formed an LLC?? 

 

What type of insurance do u have? and how much does it cost annually?

]]> Tue, 23 Aug 2011 08:34:04 +0000 Jackie on Incorporating my Blog https://yakezie.com/forums/bloggers-lair/incorporating-my-blog/page-3/#p36917 Bloggers Lair https://yakezie.com/forums/bloggers-lair/incorporating-my-blog/page-3/#p36917 My blog is in an LLC, but just a note that forming an LLC and "incorporating" (as in forming a corporation) are not the same thing. An LLC is considered a disregarded entity by the federal government, and the taxes are passed through to the members. A corporation is a separate legal entity.

You'll read a lot of places about LLCs being good because they protect
your personal assets, etc. From what I have read though, if you are a blogger and your
business is blogging in a way that you are essentially the business, it
is likely going to be very easy to "pierce the veil" of the LLC and go
ahead and say you are personally liable. For liability reasons, insurance is often a good idea. And definitely keep business and personal finances separate, as Everything Finance mentioned.

]]> Tue, 23 Aug 2011 06:39:12 +0000 Tushar @ Everything Finance on Incorporating my Blog https://yakezie.com/forums/bloggers-lair/incorporating-my-blog/page-3/#p36911 Bloggers Lair https://yakezie.com/forums/bloggers-lair/incorporating-my-blog/page-3/#p36911 I can't stress this strong enough, but please keep your business bank accounts, credit cards separate from your personal stuff. 

It will make your life easier during tax time too.

]]> Tue, 23 Aug 2011 06:12:54 +0000 Frugal Confessions on Incorporating my Blog https://yakezie.com/forums/bloggers-lair/incorporating-my-blog/page-3/#p36910 Bloggers Lair https://yakezie.com/forums/bloggers-lair/incorporating-my-blog/page-3/#p36910 Thank you for the info Eric! I was wondering what the benefits were aside from protecting your personal assets.

_________________________________

Eric J. Nisall said:

No problem at all, Justin.  I just want to tell you that you may want to reconsider once you start making enough money to warrant a salary.  As a Sched C filer, everything you net is subject to self-employment taxes, but when you elect S-Corp filing status, you get to take a salary and only that part is subject to payroll taxes.  The net income of an S-Corp is considered a distribution and is never included in the self-employment tax calculation.  Depending on how much you start to make, the savings can be quite considerable. Something to keep in mind, huh? Cool

 

This goes for anyone who is still filing a Sched C and making pretty serious money, maybe say $50k net.  Taking a salary to save money on SE taxes and not having to worry about filing estimated taxes can probably help out a lot once you reach that point in the blog's life.

]]> Tue, 23 Aug 2011 06:04:57 +0000 Suba @ Wealth Informatics on Incorporating my Blog https://yakezie.com/forums/bloggers-lair/incorporating-my-blog/page-3/#p36893 Bloggers Lair https://yakezie.com/forums/bloggers-lair/incorporating-my-blog/page-3/#p36893 We pay too much for the "privilege" of living in CA... But if you are not living in one of the retarded states (CA, NY...) and do plan to grow your business, please consider forming a business and keeping everything separate as soon as you start making money.

 

 

]]> Mon, 22 Aug 2011 21:22:02 +0000 SweatingTheBigStuff on Incorporating my Blog https://yakezie.com/forums/bloggers-lair/incorporating-my-blog/page-2/#p36891 Bloggers Lair https://yakezie.com/forums/bloggers-lair/incorporating-my-blog/page-2/#p36891 Right, thanks for the backup guys lol.

I would only do it for the tax savings, but after the giant fees, it seems like it may be more of a hassle than the savings are worth.

]]> Mon, 22 Aug 2011 21:01:36 +0000 Kay Lynn Akers on Incorporating my Blog https://yakezie.com/forums/bloggers-lair/incorporating-my-blog/page-2/#p36888 Bloggers Lair https://yakezie.com/forums/bloggers-lair/incorporating-my-blog/page-2/#p36888 Squirrelers said:

I'm not in California, but checked and unless I'm reading it wrong, it seems like there's an annual $800 LLC tax.  Not small change for those living there!

 

 

You're not wrong; it really is $800 a year.  That's why I haven't done so plus (as I've posted before) two different lawyers told me it really doesn't add much protection to sole proprietorships.

]]> Mon, 22 Aug 2011 19:57:47 +0000 Eric J. Nisall on Incorporating my Blog https://yakezie.com/forums/bloggers-lair/incorporating-my-blog/page-2/#p36882 Bloggers Lair https://yakezie.com/forums/bloggers-lair/incorporating-my-blog/page-2/#p36882 Wow, that's nuts (no pun intended).  I was just on the CA Franchise Tax Boar, and they really do charge an $800 fee for LLC's.  Not only that, but they also tax an S-corporation at the corporate level too, albeit only 1.5% even though most states follow the IRS lead when it comes to taxing different entities.  That just blew my mind.

]]> Mon, 22 Aug 2011 19:43:52 +0000 Squirrelers on Incorporating my Blog https://yakezie.com/forums/bloggers-lair/incorporating-my-blog/page-2/#p36878 Bloggers Lair https://yakezie.com/forums/bloggers-lair/incorporating-my-blog/page-2/#p36878 I'm not in California, but checked and unless I'm reading it wrong, it seems like there's an annual $800 LLC tax.  Not small change for those living there!

 

 

]]> Mon, 22 Aug 2011 19:24:57 +0000 MoneyIsTheRoot on Incorporating my Blog https://yakezie.com/forums/bloggers-lair/incorporating-my-blog/page-2/#p36876 Bloggers Lair https://yakezie.com/forums/bloggers-lair/incorporating-my-blog/page-2/#p36876 I do know California is a bit more expensive than Michigan, and I believe they require some sort of annual filings that Michigan does not.  I was reading through some of this stuff on different sites...basically in michigan I pay the $50 to start the LLC, and from there I just file my schedule C each year...which as Eric said before is subject to my personal tax rate.  It took 30 minutes of my time today and I should be all set when I get the paperwork back from the state within the month.  In the end my house and assets are protected, which is the biggest part for me...I know the odds of a blog being sued are nil, but I will sleep easier now.

]]> Mon, 22 Aug 2011 19:16:44 +0000 Eric J. Nisall on Incorporating my Blog https://yakezie.com/forums/bloggers-lair/incorporating-my-blog/page-2/#p36874 Bloggers Lair https://yakezie.com/forums/bloggers-lair/incorporating-my-blog/page-2/#p36874 That's a great example, but actually the maximum amount of federal unemployment tax per employee is $56, so it's pretty negligible, plus both state and federal unemployment taxes are deductible to the business (for what it's worth).  

 

So that's what you went for the other day, huh? Smile  That guy must have been smoking some of that medicinal stuff.  I don't know the regs for CA, but I find it hard to believe that the annual fee is so high unless he meant the tax return was included in that figure.  

 

Anyone can find out all of the requirements by searching for their state's Secretary of State or Division of Corporations, and everything should be right there.

]]> Mon, 22 Aug 2011 19:07:49 +0000