You are finally making a decent amount of money online and are looking to make the change from your personal name to an established business. You have a couple choices here. Will you start an LLC, or an INC business? While this may seem like a very simple question, it can get quick confusing, and your decision will be based upon what type of business you run. Each of these business entities will cater to your business differently. I have compiled a great list of sites for you to read through to help on your decision.
– Choosing the Best Ownership Structure for Your Business
Nolo has created a great 4 page article, which covers some of the key areas to help you decide between an LLC or an INC. These covered areas include “the potential risks and liabilities of your business”, “the formalities and expenses involved in establishing and maintaining the various business structures”, “your income tax situation”, and “your investment needs”.
– Inc. vs. LLC: Which legal structure suits your business?
BankRate was probably the best article write up I came across. It gives a run down of the advantages and disadvantages of running your business as an LLC or INC.
– US Business Law & Taxes
About.com has also compiled a list of great resources which cover Starting Your Business, Financing Your Startup, Business Taxes, Business Accounting Records and Finding a Business Location.
The end result of most of these articles are to sit down and talk with your attorney or accountant to make the best decision. That is what I did… My goal is to specialize in making money, not to have to go to school again and read hundreds of pages on LLC vs. INC. It’s most likely your attorney or accountant already have an idea of how you are making money, and if not, explain it out to them. Once you go over everything, they should be able to tell you which business entity is right for you. You specialize in your job and your attorney and accountant specialize in theirs, before racking your brains on all this information, get their opinion as well.
If you are still looking for more information on how to form an LLC or start your or corporation, you may find LegalZoom, MyCorporation and The Company Corporation useful. In my last article on “How to Form an LLC for Your Business“, I did a quick review on each of these companies and the costs associated to filing and starting with your new business entity. In addition to filing your papers, they also cover many question you might have on making the change over to an LLC or INC.