How Should I Incorporate if I’m An Amazon / Online Business?
Incorporating to protect your assets from litigation and from taxes is a different game for Amazon and Online Businesses. It can be hard to find a CPA and a lawyer that is familiar with Amazon and Online Businesses, as they are quite different from your traditional brick-and-mortar businesses.
Here are some resources I found when digging around for solutions on whether I should incorporate my Amazon and Online businesses as a Sole Proprietorship, LLC, S-Corp or C-Corp:
The Amazing Seller Podcast Episode 143: Tax Overview for Amazon Businesses
Notes:
- S-Corp is usually the best option for online businesses
- Once you get to $30k-$40k net profit per year, it would be a good idea to set up an S-Corp
- Need to file monthly payroll. You can do this for $35 / month easily by using ZenPayroll.com (Gusto.com)
- Form your LLC early on. You can change it to a S-Corp at any time, and can date is back to the beginning of the year. Not hard.
- You can tax deduct a room in your house even if you rent (~ min 27)