Hello Community!
I’ve recently been looking into some extra ways to make some money and i’m thinking of creating and selling digital products(ebooks, templates, etc.). I wanted to know if any of you have experience with owning a LLC and if it would be beneficial for me(tax purposes wise) for the products to be created from an LLC vs. something just created by myself. Thanks so much for your help!
You definitely don’t need an LLC to get started.
I have personally been running a reselling business for years and still haven’t gotten one (although I keep saying I am going to)
LLC’s do have some tax benefits but they are more for keeping your personal assets safe from lawsuits. (although not it every case)
Having an LLC isn’t a bad idea but it does take a bit of time to get and to understand how to operate under.
You can check out your state requirements for filing annual reports at your state government entity for corporations. In our state, FL, it’s very easy to create an LLC online and to file the annual reports online every year. We had an attorney file the first year then realized that wasn’t necessary because of the simplicity. But we had the satisfaction of avoiding any problems with the state that first year. There are 2 types of LLCs in our state…I mention this because with all our attempt at thoroughness, our CPA didn’t explain this well and we set up as an LLC sole proprietor and that first year he filed our IRS tax forms as a “corporate” LLC. Had we realized there were 2 types, that discussion would have saved us a lot of aggravation, we had to amend our taxes that year.
i have no idea, but i like learning from you all thank you for always sharing
Hi! Having an LLC (business entity) with an S Corp (tax election) has been helpful for me. Most important, it separates my business finances from personal finances. I have hired an accountant to help me figure this out because it is a lot of information. I am still learning about basic bookkeeping and tax deductions for my business. Good luck!
