LLC, S-Corp, or Sole Proprietorship?

[xxmlrxx]

If you have registered a business to handle your domain selling, what type do you operate? Also, at what point did you decide it was time to do so...after you made a certain amount of money, you quit/lost your job, made your first $xxxx sale?

I am 95% sure that I am going to start an LLC within the next couple days/weeks and could use any input available.

Thanks in advance!

 

[renek]

This might be different for domainers from different countries.

 

[NetOctave]

What is an LLC ?

 

[xxmlrxx]

This might be different for domainers from different countries.

Very true

What is an LLC ?

According to Wikipedia:

A limited liability company (LLC) is a flexible form of enterprise that blends elements of partnership and corporate structures. It is a legal form of company that provides limited liability to its owners in the vast majority of United States jurisdictions. LLCs do not need to be organized for profit.

More details can be found at http://en.wikipedia.org/wiki/Limited_liability_company

 

[nielsencl]

Check other resources, but get an LLC if you don't think your company will get very big, want to keep things simple, and don't want to have to file 2 tax returns each year. Get an s-corp if you think your business will grow or become more complicated, want to have stock, and don't mind more expenses and paperwork. I think you can convert an LLC to an s-corp later on, but I don't think you can do the reverse. Get a book that talks about both and it should help you to decide.

The main reason to go from Sole Proprietorship to LLC is to protect your personal assets in case of legal problems. If your risk is low or you don't have much beyond your company, then you may not need the LLC.