Financial Samurai - Forums

Career => Entrepreneurship / Side Hustles => Topic started by: wzhang18 on January 11, 2019, 08:00:44 PM

Title: form a firm or not?
Post by: wzhang18 on January 11, 2019, 08:00:44 PM
Hi, I learned that forming a firm can have many advantages (e.g. tax). I wonder if I create a blog or a youtube channel, should I create a firm for it? What are the pros and cons? Thanks.
Title: Re: form a firm or not?
Post by: sfpf on January 15, 2019, 04:07:39 PM
Depends how serious you are imo. If you are brand new and haven't generated any income it's easiest to treat it like a hobby first and you can file a schedule C as a sole proprietor if you start earning. If you are able to start generating regular income and plan on putting in a lot of time for the long term then forming a corporation becomes way more worth the time, setup, maintenance and liability protection.
Title: Re: form a firm or not?
Post by: Sydney on January 16, 2019, 11:22:33 PM
I agree with sfpf. Forming a business and maintaining it can be time consuming and also costs money. Give yourself a chance to try things out first like a hobby and once you pick up steam and are dedicated to working on your projects long term, then consider incorporating.