Is an LLC needed?

[Seth]

Hey guys,

So im about 2 weeks away from getting this thing rolling. Ive found manufacturing (for cheap!), ive got my website in the works, and im pretty much ready to go.

BUT... I was just thinking today as far as the legal aspect goes of forming your webiste and selling your muse and such. Do you not need to form a Limited Liability Corporation? Just in the case of tax purposes and such I would think this would be necessary.

PLEASE!!! somebody prove me wrong:confused:

Thanks guys!

[sub8hr]

It's not necessary to have an LLC, in fact you can get nailed pretty hard by a minimum $800/year tax (in Cali at least) if you are struggling to get your operation off of the ground.

You'd probably want to set one up eventually, but you can just run it as a sole proprietorship. You will still, however, likely need to obtain a seller's permit for your state and find out about your sales tax obligations.

[jpocia]

Keep in mind that with 4hww, it clearly states that you should "Go forth and project professionalism with a well-designed image. Perceived size does matter."

In addition, with using Paypal as a merchant and shopping cart. It would "appear" to be a more professional company if the invoice reads "XYZ, LLC."
Rather than "Joe the Plumber".

Furthermore, an LLC would help shelter your personal assets from any litigation. If in fact something happens. Also, if you are considering possibly taking on a partner to help expand the business. You will be able to provide them with a vesting schedule or % of the company. Usually, investors want a piece of the pie.

The costs to create an LLC are minimal. Also, the taxation is passed through to the owners. So it's not going to complicate things in this regard.

Just my two cents.

[Doc_Leo]

And What is the best place to form a LLC?
Delaware, Nevada, California or also foreign countries like Canada?