Domain registering for my sole-proprietorship business

[Jimmypoo]

Funny - GoDaddy just sent me this, not 5 minutes ago.

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[M A V I C]

laarree wrote:
[quote=decay]
forming an LLC will protect your assets if you're ever sued or for other reasons.

any reason NOT to form a business entity?

Expense. Complexity of paperwork. Sheer overkill. Learning curve. Minimal concern about issues of liability with the work I do, which is largely sitting at a Mac in my home office. Also, if I really need to, I can do this later. Everyone else I've spoken to locally (including many small business owners), thinks it is unnecessary for what I'm trying to do.
None of those excuses sound valid to me. If you have a good accountant, being incorporated will cost you less. Sure your accountant will have to do more complex paperwork, but that's why you have an accountant and bookkeeper. Learning curve? Not much new for you to learn. If your accountant has to learn stuff to do it, find another accountant.

If this was part-time self employment, I can see reasons why you might stay that way. But for full time, there's really no reason not to incorporate.

And if you think there's minimal concern about issues of liability with the work you do, you might want to think it through some more. It doesn't matter what profession you're in, there's risks. And considering it costs less to be incorporated, it's worth it. I work from home most of the time as well working on a computer. That doesn't mean there aren't a ton of risks out there.

[laarree]

M A V I C, let's just agree to disagree about this. I've already made decisions based on trusted advisors who I know personally--if, as time goes on, it becomes apparent that it would be wise to incorporate in some form, I won't hesitate. It's not like i'm all of a sudden ineligible because I did something simpler for the near-term. What I'm doing is more like independent contractor/freelance kind of work, rather than a more business-y business. When I finally have a site up and running, this will be clearer.

[Jimmypoo]

There's a lot more DBAs out there than there are one person LLCs/S-Corps.

[Black]

laarree wrote:
M A V I C, let's just agree to disagree about this. I've already made decisions based on trusted advisors who I know personally--if, as time goes on, it becomes apparent that it would be wise to incorporate in some form, I won't hesitate. It's not like i'm all of a sudden ineligible because I did something simpler for the near-term. What I'm doing is more like independent contractor/freelance kind of work, rather than a more business-y business. When I finally have a site up and running, this will be clearer.

i agree with MAVIC-- about DirectNIC. They've earned my loyalty.
Otherwise-- I'm not sure how one could fee so strongly about the benefit of incorporating without knowing much much more about larree's particular situation than what's been offered here.

[mattkime]

I'm kinda curious to hear how incorporating saves you money, considering that your accountant will need a chunk of money to do the extra work.

[M A V I C]

mattkime wrote:
I'm kinda curious to hear how incorporating saves you money, considering that your accountant will need a chunk of money to do the extra work.

Taxes. We don't even have state or city income taxes, but the cost of being a sole proprietor is super high even just for federal income taxes. I'm sure it has changed, but a few years back if I made $60k/yr as a schedule c, I would be at a ~40% tax bracket. So my income after taxes would have been $36k.

Now say you incorporate, make yourself an employee and use a pass through entity. Pay yourself only what you need and then you pay income taxes on that amount. One ends up paying more like 10% taxes (depends on the business, accountant...) now you make $54k. Even if you pay your accountant an extra $1k, you end up with $17k more by being incorporated.

The more you make, the bigger the difference.

A friend of mine got a job a good sys admin couple years ago. Halfway through the year he told me he was getting 1099'd. I asked if he had incorporated. He said no. I sent him to an accountant I know. He incorporated, but only could for the last half of the year. He ended up paying $10's of thousands more in taxes for the first half of the year than for the second half.

The disadvantage of waiting is having to pay fees all over again, no protection against liability in the mean time, and paying much higher taxes until one incorporates.

[mattkime]

alright....so you paid something like 10% in corporate income tax, right? well, if you're paying yourself as an employee, then you need pay personal income tax on that.

right?

M A V I C wrote:
[quote=mattkime]
I'm kinda curious to hear how incorporating saves you money, considering that your accountant will need a chunk of money to do the extra work.

Taxes. We don't even have state or city income taxes, but the cost of being a sole proprietor is super high even just for federal income taxes. I'm sure it has changed, but a few years back if I made $60k/yr as a schedule c, I would be at a ~40% tax bracket. So my income after taxes would have been $36k.

Now say you incorporate, make yourself an employee and use a pass through entity. Pay yourself only what you need and then you pay income taxes on that amount. One ends up paying more like 10% taxes (depends on the business, accountant...) now you make $54k. Even if you pay your accountant an extra $1k, you end up with $17k more by being incorporated.

The more you make, the bigger the difference.

A friend of mine got a job a good sys admin couple years ago. Halfway through the year he told me he was getting 1099'd. I asked if he had incorporated. He said no. I sent him to an accountant I know. He incorporated, but only could for the last half of the year. He ended up paying $10's of thousands more in taxes for the first half of the year than for the second half.

The disadvantage of waiting is having to pay fees all over again, no protection against liability in the mean time, and paying much higher taxes until one incorporates.

[M A V I C]

mattkime wrote:
alright....so you paid something like 10% in corporate income tax, right? well, if you're paying yourself as an employee, then you need pay personal income tax on that.

right?

It depends on the entity. With an S-corp, you don't pay a corp income tax. You just pay a payroll tax. And then as an employee you have to pay income tax, but you only pay that on what you take as income. So if the business makes $100k/yr, but you only pay yourself $20k/yr, you only pay taxes on the $20k.

[PraveenBhalla]

No Confuse here:

Domain Registration help

I have a pretty basic question for probably most of you on this forum, but I appreciate your expert advice.

Question: If I register the domain name of my business, with let's say GoDaddy, but want to host the site with someone else - Is that a good idea? Does it matter who I register with tia host with?

Thanks so much for your time