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> The problem if you don't is that everything will get muddled in your personal finances and that's not a good thing. Good point, I'm not salaried so my financ
by lionhearted 16y ago
> The problem if you don't is that everything will get muddled in your personal finances and that's not a good thing.
Good point, I'm not salaried so my finances, accounting, and taxes are already fairly complicated so that creating a new entity for a casual project doesn't make such a difference. Expenses for new projects are usually just a single line item in my budget. For someone getting most of their income from salary, it might make their taxes easier to have an LLC that shows a loss the first few years and passes that through.
What was the spinning off process like, if you don't mind elaborating? You start building in your personal LLC, and then if the project takes off you spin it off? Then you've got personal assets separately from your various LLC assets? Has it made enough of a difference to be worth the paperwork? (Also, a California LLC costs minimum $800 year, even if you lost money, so I assume you're not in CA)