Hello all,
I am wondering whether professional bloggers tend to create an LLC or some kind of corporate entity for their blog?
Given that I plan to write some thoughts about public companies, I am concerned that if someone takes issue with my opinion, I may have some type of legal liability issues.
I am also curious about tax implications for my blog assuming that I derive some kind of advertising revenue in the future. In the short term I don't plan to have any revenue, but I am currently incurring costs that would be nice to deduct (graphic/logo design, hosting fees, etc). Could these just be deducted from my personal tax filings?
If it does make sense from a legal or tax standpoint to establish an LLC, is there a good resource for bloggers somewhere to help set this up in a proper and cost effective manner?
Thanks,
Nisan
I am based in the UK so
I am based in the UK so things are different here but I think in general if you are doing something with a view to earning income then you do need to look at the tax and company structure requirements and options. The fact that you can claim internet connection, hosting, etc as business expenses is an advantage but I am neither a lawyer nor an accountant heh.
Self employed freelancers ...
Self employed freelancers are treated pretty liberal over here in Germany. I would only want to get a company structure if external fundings are involved and you might have to share costs and revenue on a contract base.
If you start a business it is normal that you start with costs and income follows later. So most tax departments will accept some kind of 'negative income' during the start-up period.
some suggestions
These are only suggestions, but here goes:
(1) If you live in Canada, don't incorporate unless you think you'll make close to Cdn$100,000/yr. It's not worth the hassle. Seriously. It's a bloody headache, especially if you're disorganized.
Look into the income level for incorporation for your country. Ask a good accountant. And by that I mean someone who isn't part of a chain of accounting franchises. Such people tend to be very conservative, and the chances of an entrepreneur missing out on deductions increases.
Most accountants charge individuals about $100 to file a return. While in a session with your (new) accountant, tell them that you're considering incorporating, and could they please tell you whether it's worth it. They'll ask you some questions about your intended business. If they don't, run. Keep in mind that they probably offer a $1,000 "package" to help you incorporate. It isn't strictly necessary, as you can do it yourself. But if you can afford, I'd recommend you take. They'll offer you a ton of advice as to procedures for tracking your books, etc.
(2) If you plan to be writing about public companies, maintain as much journalistic integrity as possible, especially if you aren't incorporated. The thing is, there is a way to criticize publicly, but allow the entity being criticized to save some face - especially if you offer them an opportunity to respond, like a newspaper would/ might. On the other hand, if you're out to trod on everyone and bring them down, you'll probably eventually have someone bite back.
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