SELECTING THE RIGHT CORPORATE STRUCTURE FOR YOUR ONLINE BUSINESS
- May 2, 2018
- Posted by: Afaq Khan
- Category: Online and Internet Business Online Business Mastery Framework
What are the suitable corporate structures for an online business?
There is no right or wrong when it comes to corporate structures, it all depends on the business that you’re planning to start, where you’re in your journey, and your future growth and scale goals.
If you are a starter, with all-digital products (or other minimum liability products), you don’t have to establish a corporation altogether, as you can simply use sole proprietorship. As an example, you can do so if you’re only doing Amazon Kindle business as a self-published author.
If you plan to do online business in any other name than your own, then you at least need to register Doing Business As (or DBA) which is also known as Fictitious Business Name (or FBN). It is just an overlay that you register with your county to ensure that everyone knows that you’re using blah-blah to conduct your business. Registering DBA/FBN are super cheap and can be completed in a matter of four weeks.
Now, if you are already making money doing online businesses or prefer to manage your personal risk upfront, then I’d highly recommend you to establish an Limited Liability Company (or LLC). This would help you separate your personal assets from your business. You need to think about your corporate structure prior to registering DBA or FBN. Registering an LLC is really cheap and you can do it yourself by filling up a really short form and a fee less than $100. You can checkout fees charged by your state here.
Last but not least, subject matter discussed in this post, as well as others, is covered thoroughly in various online courses offered by Private Label Mastery.
Please feel free to share your questions or comments, I will be answering them over the next few days.