If you get your website up and running, and your online endeavours start to create a bit of money, you may want to think about actually forming a company. Many people use the sole proprietor model because its simple, and usually they really don’t know anything else that to file a DBA. However a sole proprietor business provides little to no protection for the owner. If something happens that the business gets sued, then creditors can and will come after personal assets. If you are incorporated, then the business is its own entity, complete with it’s own ID number (much like your SSN) and issues that creditors have with your business, are with your business, not you. There are also tax advantages to forming a corporation that make it worthwhile for the business owner.There are many kinds of corporate structures. When it comes to something like a website, unless you are working for a non-profit organization, you most likely wont need anything more than an LLP. You can also form an LLC with about the same difficulty. They provide the same tax benefits, and the only notable difference is that an LLP’s cant enter into partnerships with corporations (even other llp’s)..only individuals. LLC’s can enter into partnerships with individuals or other corporations. However an LLC is just a bit more formal. With any business structure you choose, there is going to be paperwork that needs to be filed at the state level. If its not filed in the right way, there can be problems that could be quite damaging to the company, even make it null as a business.

For instance, with a corporation there has to be regular meetings, and the minutes of the meeting needs to be kept. They have to be filed, and available if asked for. Most people haven’t got the faintest clue how to do this and even they do, most likely the don’t have the time or resources to hire someone that does. Luckily, there are places on the internet available that can do this for you!

Incparadise.com offers the forms for free Here!
They will also prepare them for you for only $25 - Here

Another thing most people don’t think about is getting a tax ID. These are great to have if you are doing things like filling out surveys for extra cash. For only $25 you can stop putting your SSN out on the net. Here

I would highly suggest atleast getting the TaxID. Check out their blog for more info for what is best for your needs.

Incparadise also offers complete corporate kits

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