Re: Online businesses......
If you are a single member LLC you are essentially a sole proprietor anyway. Single member LLC's are considered a disregarded entity by the IRS and unless you specifically elected to be taxed as a corporation using a different form (and I would suggest talking to an accountant before hand, too) you would file taxes the same as a sole proprietor. And, the double taxation is a killer for the self-employed. Argh...
When I first started my business I formed an LLC under bad advice through a close friend and family member. Since it was single member I couldn't find any benefit, after much research and consulting with 2 sep. business accountants, they unfortunately, couldn't show me any benefits either. Not even for liability. It was basically a huge bust. I have since incorporated. It was a lot of wasted money, filing for LLC, paying fees, legal notices in newspapers, etc. to wind up realizing all I had was a fancy name for my business and really nothing else. Learned my lesson though. I would definately speak to an accountant - even if you have to pay for their time before forming an LLC or incorporating, or chosing to do nothing even. They can sure save you a lot of headache. Everyone's situation is different, so what works for one may not work for you, etc.
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