What's the best kind of corporation to have for this online business?

[mrmax]

I want to set up a business structure so that I can sign up with CCbill and take credit cards and affiliates.

I live in Mass. I dont know if I need to be incorporated, get an LLC, an S corp, a C corp. A friend said I should get an LLC so I was leaning that way.

I saw this on legal zoom and it seemed like a good cheap solution: http://www.legalzoom.com/limited-lia...y-pricing.html

Any advice on what type of business is best for running an online business, taking affiliates, etc?

[Titanmen]

You are asking for trouble if you think you are going to get good legal advice from an online forum. Spend the $500-$1000 and get some real legal advice from a real attorney. If you have any assets whatsoever you are risking everything you own and any future income if you make the wrong decision. This is too important a decision to make from online suggestions.

[mrmax]

Thanks, Id just like to know what other people here have done in terms of filing their business, and why they did it.

[abostonboy]

Marc,

I would suggest you do the following:

1. Goto Amazon and grab a book on the different ways that you can setup a Corp.
2. After doing that, get some legal advise.

Now, you mention that you want to do it to be able to process through CCbill. Here is some advice - Don't think of it that way. Look 2-3 years down the road. Will you want additional capital? Will you want to sell? Will you expose yourself to greater risk than now? Will you hire employees? The list goes on and on. That's why it's going to be REAL hard to get advice on a board. Everyone's business is unique. I will even go out on a limb and say that some may say how great their LLC is versus a S-Corp and may not even know that in their case a S-Corp maybe better. Or vice-versa.

Just one thing to keep in mind: If you go with a C Corp make sure you fully understand the tax liabilities.

[abostonboy]

p.s. Because you live in MA is even more reason to get some legal advice. Just because you live in MA doesn't mean your Corp has to be in MA. Something to consider with a tax attorney.

[nickbaer]

WHile having an Attorney is absolutely necessary, your 0next visit should be to your tax preparer.

Anyone in business should have a CPA do their corp and personal taxes. Not an H&R Block, but a real CPA company, whose name is a mile long list of the partners' surnames.

The CPA will know what's best from a tax standpoint in your State, or give you a couple of options that your Attorney could then help you choose from, based on other legal issues such as: your other assets, other obligations, "marital status," other partnerships you're signed to, etc.

Before you go too far, you might want to consider that there are 10 or so states in the US that do not have state income tax. Why do you think Bill Gates lives in the State of Washington??

If you're too complicated for just a CPA, possibly the CPA, Attorney and you should conference to find the best fit for your situation.

Some states and cities have friendlier attitudes to First Amendment businesses, as well.