What I've been reading online talks a lot about liability, insurance, and other issues that I do not foresee being relevant to running a website, but it sounds like an LLC mitigates those issues. It will cost me a few hundred dollars and quite a bit of time to set up an LLC... I could always start as a sole proprietor and then make the switch if I deem it necessary, so that's the option I'm leaning most towards.
I know plenty of folks on here have hobbies and small businesses or websites they try to monetize, so maybe you have an idea I haven't considered?
ProllyInfamous•1mo ago
As an example, here in Tennessee, you may exempt $10,000 from seizure, plus $1900 in work tools (including computers). Therefore, if you have less than $11,900 in Tennessee, you are judgment proof. If you are judgment proof, there is no reason to create an LLC.
In Texas, your entire homestead is exempt!
Also, LLCs cannot represent themselves in court (i.e. require an attorney for litigation). You must also file quarterly taxes, tangible property taxes, &c. Dissolving the LLC costs way more money than creation.
Really just an all-around pain in the buttocks.
Src: Have worked individually as sole proprietor, LLC, and s-corp — the latter at least simplifies taxes.
See also: <https://en.wikipedia.org/wiki/Piercing_the_corporate_veil>
dandeto•1mo ago