4 ms·
How relevant is this to a single person wanting a corporate front to make small amounts of side money from a website or app? Is an in-state LLC more preferable
by merrywhether 10y ago
How relevant is this to a single person wanting a corporate front to make small amounts of side money from a website or app? Is an in-state LLC more preferable in that situation? Is any type of incorporation even necessary?
- mcorrand 10y agoI used a sole proprietorship until the money started getting more substantial; that may not be a good idea if your business has large risks though.
- gk1 10y agoYou should be fine just forming a disregarded-entity LLC in your state. There's no reason to do it in Delaware, except want to part with a lot more of your money. Even if you form the LLC in Delaware, you will have to register it as a foreign entity in your home state, so you're only doubling your paperwork and annual costs. It's worth chatting with an accountant about this. Many of them offer a free 30- or 60-minute consultation to new clients (or potential clients).
- jahewson 10y agoFor your case incorporation is not necessary. Being in a single-member LLC doesn't necessarily limit your liability all that much. Declare your earnings on your tax return and pay state and federal self-employment taxes. Simple.