I got this email from Stephanie-Ann and like her, I would love to hear your thoughts:
Hi Amy,
Love your Blog, I have learned so much from it! I am curious to the trend of bloggers as to what business structure they choose and why. I have had an LLC with a partner on a previous blog and understand all the legal coverage with that – but really don't like the tax part (being taxed as a business then personally with the personal income).I set up another blog Parentingmultiples.net (more of a hobby – I have twins) and set myself up as a sole proprietorship, mainly because it was easier and my state does not require a business lic for sole proprietorships. Would love to hear what other bloggers choose and why.
I've noticed a lot of bloggers are going the LLC route lately. I must admit, I'm a bit reluctant because there's a franchise tax in my state for LLCs, not to mention the costs associated with filing and paying for a Registered Agent. (I have to name a Registered Agent who can accept mail for me at a physical address. No P.O. boxes allowed. I do not want to use my home address, so a paying someone to act as my Registered Agent appears to be my only option at this point.)
Of course laws vary and blogs vary. And I understand the idea of protecting your personal assets by becoming an LLC. But given the costs and hassle (albeit small), why not just remain a Sole Proprietor? For a small to mid-sized blogger, is anything more overkill?
By the way, I thought I'd ask Dave Ramsey what he thinks too. I was just on the radio! Fun! (I'll update with a link to the archive show as soon as I have it.) Dave's advice was that unless you're blogging about something someone might sue you over (he gave the example of controversial weight loss methods, etc.) or you have substantial assets, a sole proprietorship is fine.
What say you? If you've taken the LLC plunge (or the Inc. plunge, or any other form of business plunge), what convinced or didn't convince you?
Disclaimer: I'm not a lawyer or an accountant. None of this should be construed as legal or accounting advice and you should absolutely consult a professional about your own situation.
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Thanks for tackling this topic. I'm really looking forward to what everyone has to say! This is just one of the LONG list of questions I have when it comes to blogging!
People are chiming in on Facebook and Twitter too (in the #savvyblogging stream) if you're interested.
I want to blog about my business but I'm not sure where to begin. Nice blog thanks!
I'm very interested to hear what others say about this. I wanted to go with an LLC as a kind of umbrella company for all my online ventures, but my state charges $800 annually! So that one is out.
I'm now in the process of setting up a sole proprietorship, and am wondering if it is OK to do that as an umbrella company too. I'd rather not have a different one for everything.
I'm also curious as to when you feel getting professional advice is necessary. I'd rather do things myself, but then again, I don't really know what I am doing. So maybe that is not a good plan
Well, I think getting professional advice is one of those things that you generally don't regret having received. However, at the same time, it's one of those things with which you have to balance cost and risk. If you have someone, for example, that already does your taxes, they might be someone willing to chat (probably not until after April 15 though!).
As someone who set up an LLC, I do it for the reason you mentioned. I want my assets to be protected. I understand where Dave is coming from, but in a country where people sue because they don't like the weather on a specific day, I don't want to take a chance on what could be "controversial" or not.
From someone who has been on that side of it, and doesn't want to have to go through that again,
Jen
This is a great question… and one I've been grappling with too. I was going to set up an LLC, but in NY the costs are very prohibitive.
Then I asked my accountant and he suggested setting up a DBA (doing business as). He had the same advice as Dave Ramsey… unless there is a liability risk (like driving someone in my car) he didn't think an LLC was necessary.
I'll look forward to seeing what other people have done!
OMG! I was in the drivethru at lunchtime and I heard your call. I wondered if it was you! How funny!
Oh that is funny!
I haven't even considered any of this yet. I'm not making anything significant to worry about it yet.
But the more I read, the more I'm not sure I want to become involved. Like Jen said: this country is sue-happy. They sue over the dumbest things just to make a buck or a point. I really don't want to drag my family through unnecessary scrutiny. This is a hobby for me and making money on the side is a perk, and fun.
Right now I'm rather torn on what to do.
For now, I'm happy with just being a solo proprietorship. I'm not sure when/if I'll make the decision to change. But this works for me now.
I'm choosing the same thing for the moment.
I am sole proprietor for my small Physical Therapy business, as well as my blog. It's just easier!
I choose the sole proprietorship way too. The costs for an LLC are just too much at this stage. Since I was already doing that for contract jobs, it just made sense. (sort-of-a go with what you know theory)
I finally just got my city business license set up and am still a sole proprietor. I will be going the DBA route though soon I think which will be my "umbrella" as someone mentioned earlier. I had read about LLCs awhile ago and thought that if you are the only member of an LLC that it doesn't really protect your assets. Mark Mason has a good article about his experience here http://www.masonworld.com/internet-marketing/sole-proprietorship-to-a-limited-liability-company/
Thanks so much for the link Sara! So interesting…
My first thought was "could I trip over your blog and break my leg?" I love that you talked with Dave Ramsey and plan to share a link … You are doing a great service for many Amy!
Thank you Mary.
Amy, do you have a link to that call? I'm interested.
Unfortunately, it's no longer live. I think they only keep the links up for a few weeks.
Amy,
Would you recommend a new blogger set up a Sole Proprietorship or LLC immediately? Or is it something that can wait until after blogging for a while.
Thanks – Dana
I think it really depends on where you live and what your situation is. I'm not an LLC, but a lot of bloggers are. It's just a matter of what you're comfortable with and how the costs pan out in relation to the benefits. I don't think you need to worry about it until you're making steady income though (unless you're given advice that someone might sue you for). I'm not an attorney though, so talk to yours!
Hello, I've been reading a few of the topics here on your blog and find it helpful but also find other questions coming up. I haven't started a blog yet but am in the beginning stages of opening one. I have two specific quesitons that if anyone can help me with either with advice (which I know is simply that and not legal) or hook me up with someone they think could help that would be great.
1. My blog is going to be about reviews. I'm going to review everything, So on my one blog I am planning to have multiple pages for sections, such as Travel, Fashion, Culinary, etc. ….Never having done a blog before, does this sound like something that you think people would be interested in? I know reviews have been done but I have some additions I'm going to add that I just don't want to mention at the moment
2. I'm Canadian, Living on a visa in San Diego, CA, planning on moving to Sydney Australia in April 2013. I have no idea what to do as far as LLC, sole proprietorship, etc. do i have to file the company in canada even though I'll be starting it in the USA and planning on migrating to Australia. I don't even know where to start looking for such information but I want to make sure I do everything by the book and correctly as I am planning on putting a lot of time into my blog and making a full time living off of it eventually. Don't fret for me, I do have a day job till then so I'm good and I'm very realistic as well, hence all the research I'm doing to make sure it's getting done right.
thanks so much everyone
Hi Tina,
Thanks for stopping by.
1. I'm not very familiar with review blogs so I'd do some observing of other review blogs to see what seems to be working for others. You could always give it a shot and see how it goes.
2. That's a question I don't know much about at all. I think I'd start with your local Small Business Administration office and see if they can help.
Hope that helps!
Thanks so much amy, someone else mentioned the SBA as well, so I'll do some more research and pay them a visit too. thank you