My own personal story FWIW, I've been losing money on my outside business as a sole proprietor for years (I'm an artist). My accountant told me that until I'm earning lots of cheese, incorporating is more trouble than it's worth.
He also said that as long as I show growth year over year it doesn't matter how much money I dump into it and can continue to lose money for years. It takes a lot of losses and time to grow high-risk businesses (like being an artist or for-profit vlogger). The rewards can be pretty significant if you stick it out. Luckily this year I made a thousands on the biz, mostly from one big grant. I would suggest getting a good accountant that knows your business (in NYC, where I am, it's easy to find accountants that deal exclusively with creatives/artists). You should also be careful about being flip about earning income. You are serious about it, it's a business. On 2/15/07, Tony <[EMAIL PROTECTED]> wrote: > > The IRS only knows two types of businesses, C-corps and S-Corps. > S-Corps are usually the sole proprietorships. > > States know businesses as profit, non-profit, and LLC. I know many > people that have registered S-Corps and haven't had a problem with the > IRS. > > --- In [email protected] <videoblogging%40yahoogroups.com>, > "wtftoadsoup" <[EMAIL PROTECTED]> wrote: > > > > It might be better to form an LLC for your business. Operating as a > > sole proprietor that loses money sometimes looks just like a hobby to > > the IRS. > > > > > > here is a bit of information on both entity types > > > > > > http://aridni.com/2007/01/the-lowdown-on-the-llp-and-the-llc-for-any-company/ > > http://aridni.com/2007/01/the-good-the-bad-and-the-sole-proprietorship/ > > -- <twhid>www.mteww.com</twhid> [Non-text portions of this message have been removed]
