Why should(n't) I officially start a business?
March 28, 2006 3:24 PM Subscribe
What are the advantages, disadvantages, and Important Things To Know about officially starting a business?
posted by cortex to work & money (17 answers total) 8 users marked this as a favorite
I am doing a thing on the web right now. I have made a very, very small amount of money off of it, but I'm seeing the possibility of making more.
I know nothing about the mechanics of officially establishing a business. Incorporating may be the word I'm looking for—taking Cortex Doing Some Stuff and turning it into Cortex Productions, Inc..
I'm in the United States. I'm a one-man operation working out of my kitchen in my spare time. Check the profile if you need to see the site for context.
I have minimal costs, but I am spending a little money—web hosting, musical equipment and software, (tiny, experimental) advertising expenses.
I have minimal revenue (very modest Adsense revenue from modest daily traffic) but hope to improve that—through merch sales; site donations; I'm talking to someone about licensing music from the site, too.
So should I jump through hoops and create, say, Cortex Productions Inc? Why should I? Why not? When should I? Are there distinct tax benefits to be had at this point? Deductions for business expenses, capital, etc? Incentive to have any income going to a business rather than my personal checking account?