Tax & Personal Liability for Affiliates


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TheFashionista
May 9th, 2008, 03:50 PM
Hi InternetAttorney: As a newbie to affiliate marketing, I was wondering at what point (i.e. how much money should someone make) should an affiliate consider registering as an LLC or Corp?

For personal and tax liability purposes, is a Single Member LLC a good option for a one-person business or would a S-Corp be a better choice?

Also, how much should you worry about personal liability protection? I know people are so litigious these days and will file a lawsuit for just about anything, so what is the best way to protect yourself?

Any resources you can direct me to would be much appreciated!!

Thank you!! :)

internetattorney
May 30th, 2008, 01:10 PM
LLCs are very popular because they do not require the same formalities that standard corporations require. An S-Corp is likely preferable for a small-time affiliate because all the money your company makes is passed on through to you and is taxed once, unlike a C-corp where you are effectively taxed twice (first on the corporation's profits and next on your personal profits overall).

        
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