If you’re operating a blog or business, you should be doing so through a business entity.
Forming a business entity, like a LLC or corporation, keeps your personal assets from being on the line if you were to ever get sued. There’s a lot to consider when you’re choosing a business entity, but today we’re sticking with when you form one.
So when do you form a business entity?
If you don’t have a business entity, and you get a judgment against you, your personal assets (house down payment) could be used to satisfy that judgment.
Additionally, forming a business entity is necessary if you want tax deductions. You can write off some start-up costs that you incur before you go into business, but most deductible expenses occur once you’re operating your business.
More on which entity you should choose, and how to form one, later 🙂
Want Lady Justice Tips of the Week delivered straight to your inbox? Sign up here!
You might also like…