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Discussion Starter #1
hi i am almost finished with my website and ready to launch soon then suddenly my cousin asks me if i have registered for incorporated like LLC

i tell him all i need are registered the domain name and federal tax ID # to sell clothes online

he says i need to incorporate my business if i want to register the company name legally for IRS purpose and to protect financiallywise

i was like eh

so should i incorporate my business and get the company name?

thanks
 

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You need to be set up with some form of business structure. If you have a tax id, you should have put on the application the structure of your business. A sole proprietorship is all you need. I would be willing to bet most of us on here have one(including me). Incorporating is something that I have on the agenda for the new year, but it is not necessary to operate your online business. If you would like to be free from being personally liable for the debts and actions of your business(there are definitely other benefits as well, taxes being one of them), then incorporating may be something you can look into doing in the future.
 

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Depending on your state you may need a business license even to do online business. I live in Florida and have done everything needed to register for a flea market (I'm sad). When I went down to turn in the paperwork I was told I needed to return the same form but have it approved by the zoning committee or some such since I'm running the business out of my home as an online presence.

Either way, you probably need an occupational license that is a sole proprietorship and not necessarily a full-on LLC. I've heard some people say you don't need a business license unless you make over a certain figure per month, but it's cheap enough CYA anyway...
 

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Corporations are something that needs some very serious study before getting into it. They save your personal liability-- is less than moot unless you are issuing stocks to raise the big bucks. And that involves many more layers of headaches. Corporation, Commercial, Business, the reference to your structure just makes many druel at how much more they can charge you for their service. Some you can't get away with out, but just think of the telephone company and accountants for starters. You probably wouldn't want to incorporate with out good reasons and already have a good cash flow to support the name. Unless you really have an urge to feel like the big shot.LOL (no attacks intended) The wrong set up will actually put a person into the double tax arena. One tax for the corp and another tax for the wage earner. (even the owner is a wage earner). Anyway, The accountants will save you a couple thousand a year and charge you that much for the extra work. I could go on and on but it is just not good for my new years resolution. Like the saying goes... Keep it simple, and you won't be stupid. Oscar
 

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cool..well, i know you have to do all kinds of legal research and what-not to make sure your trademark is unique and doesn't infringe and all that ...that's all i was getting at

aokusman said:
Trademark does not require a lawyer. Its your choice.
 

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You can have employees as a Sole-Proprietorship.

The whole thing comes down to liability and taxes. Seeing that too many people are not going to sue you over a bad tee shirt, it really comes down to taxes!

Corp’s cost more to form, and you'll pay more in minimum taxes if you remain small. However, Corp’s have the greatest tax advantages therefore greater growth can be obtained much quicker.

All depends on what you’re doing and where you’re going.
 

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Depending on what state you're in, a LLC is dead-simple to setup. To be safe, you should probably have a lawyer do it for you, but it shouldn't cost much. Couple hundred bucks, if the guy is quick and reliable. The state will charge you a per-year fee for the honor of creating an LLC (don't do it in CA). However, the upside is that you're protected from personal liability and there's only a single tax - the LLC doesn't pay tax; you pay it when you take your salary out of its profits. That's what I have. I didn't set it up for t-shirts; its for my normal job, but I think I can fold my to-be t-shirt endeavor into as well. However, as the folks have been saying, if you don't need, don't do it... simple is nice.
 

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Discussion Starter #12
as for business structure i am gonna with sole-proprietorship and sales tax # before i can launch my website

my uncle's a manager in a family restaurant before that he used to work in retailer stores like you buy 2 t-shirts for $10

he told me to go with sole-proprietorship and sales tax # and that's it

as for corporate my business i will need to research more before i can dive in the frenzy business

thanks you guys for feedbacks and helps
 
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