Κυριακή 21 Απριλίου 2013

Classify Your Blogging Business

Choosing the Best Business Structure for Your Blogging Goals

If your goal is to make money from your business blog and you live in the United States, you'll need to claim that income on your tax return. That means you'll need to determine the classification of your business for tax purposes. Choosing a business classification also affects how your finances and legal issues are handled.

Following is an overview of each business classification to help you determine which is best for you and your blogging business.

Sole Proprietorship

A sole proprietorship is the most common small business classification because anyone can start a sole proprietorship and claim earnings as part of their personal tax return. A sole proprietorship is owned by a single person and all income from the business flows through that individual's personal accounts.

Your earnings from your business are considered your personal earnings, and your business debt is considered your personal debt. The problem with this business classification is that it offers no legal protection to the owner separate from the business. For example, if someone sues you for information published on your blog, you will be held personally responsible, and your personal assets can be used to satisfy any claims.

Partnership

A partnership operates similarly to a sole proprietorship except instead of just one person being responsible for the business, two people are held responsible both legally and financially.

Corporation

A corporation is its own legal entity completely separate from any individual. That means the business owner is well-protected under the corporation classification, but corporations are expensive to start and manage.

If your blogging business is small, then a corporation is unlikely to be the best choice for your business. However, if you operate many blogs with multiple authors, you may want to consult an attorney to determine if a corporation is the right structure for your long term business goals.

S Corporation

An S corporation is an excellent choice for a small business such as a blogging business. It provides protection in the form of separating personal assets and debts from business assets and debts because the S corporation operates as its own entity. However, an S corporation is much easier to set up and manage than a corporation is.

Limited Liability Corporation (LLC)

Limited liability corporations (LLCs) are a fairly new business classification, but they are becoming very popular and are an excellent choice for small business owners such as bloggers. They provide legal and financial protection to the owners since the LLC operates as its own entity, and they are very easy and fairly inexpensive to set up.


By Susan Gunelius
http://weblogs.about.com/

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