3 ms·
I have been in the same situation multiple times and I will concur. It is not worth it to incorporate a business entity for something you don't have cash comin
by rwhitman 16y ago
I have been in the same situation multiple times and I will concur.
It is not worth it to incorporate a business entity for something you don't have cash coming in from. It costs time and money, when there is no serious income or a direct business focus its just a waste of your personal resources.
A sole proprietorship DBA with a separate business bank account is sufficient to do anything you need until the time comes to incorporate. You will know it when the time is right
(Also note that I'm in California where they tax a flat $800 every year for operating an LLC regardless of income. If the side projects make nothing and year over year get charged $800 + tax & legal issues, it becomes a costly pain in the butt. I dissolved mine to a DBA last year. If it wasn't for that damn $800 LLC tax I'd probably have kept it...)