Submitted by marcoponce on Wed, 05/28/2008 - 22:20.
Why again do you have an S corp and LLC...
I myself want to have an info product bizz.
What kind of advice can you give to us here on the board for having an info product bizz AND doing the affiliate marketing.
I split them up for two reasons:
1 - Liability - e.g. if somebody were to sue QYDJ or my affiliate marketing biz, they couldn't touch the other biz.
2 - No Self Employment Tax on the LLC. All of the income from QYDJ is taken in the form of a draw. I'm already paying the maximum self-employment tax on my affiliate business so I don't have to take a salary from QYDJ.
I'm not sure I explained the self employment tax very well. I'll have Jon chime in on this post too.
Best,
Jeremy
Two entities only make sense if you have two separate business models and you make considerable money in both of them. If the two business ideas are even closely related and you are not making a lot of money, just do it under one entity. Otherwise consult with a lawyer or your tax professional.
Best,
Jon
all good advice... for now i will work on getting my llc going. :)