Let’s say you’ve decided that setting your sights on the Dot Com lifestyle beats whatever you’re doing right now, and you’re ready to pursue your quest for life-changing money.
Now, how are you going to portray your activities in the business world?
You’ll have a veritable cornucopia of choices, but here are the most common options:
By no means is this legal or financial advice, but a practical way of deciding what’s right for you would be to follow the money.
In this case, the key factor is your tax liability.
Because you’re in it to win it, a good approach in this regard would be to take two views:
If the prospect of jumping from a sole proprietorship to a corporate entity sounds daunting, it should. After all, the Dot Com lifestyle is a two-comma world — as in $1,000,000 or better — and is the result of motivated marketers doing serious business.
If you’re one of them, the advantages of forming an S Corporation could come front and center sooner rather than later.
For the sake of being thorough, here’s a comparison between an S Corporation and the more familiar C Corporation:
Another aspect of corporate formation that I find attractive is this:
Because it’s an involved process that includes periodic reporting and fees, it provides yet another constant incentive to succeed so as to cover those scheduled expenses.
Motivated marketers will readily accept this as the cost of doing business, because bigger revenues are on the way as a result of their diligent focus. That’s why they’re the ones who are odds-on to attain the Dot Com lifestyle.
So, to summarize: