When speaking on a topic (or multiple topics as in this article) it is important to state the good and the bad, and not just the bad, which is what I saw when Scott spoke about some of these entities and business structures. All of the listed business structures are used at different times, and can be used in conjunction to create great legal protection, as well as unbelievable tax advantages.
For instance, You can split your services into multiple LLC companies (ie. Hosting, Web Design, Print, etc.) and have a corporation hold all of them. So, your corporation needs a website… Have your Web Design company create it and manage it. Need brochures? No Prob. You own a Graphic Design Company that deals in print. So basically, you just spent $3,000 on a Web Site and some brochures, and your money (that is, your companies money) just went from one bank account to another. So What… So you didn’t really spend any money and you get to write-off $3,000 dollars!
Also, by creating multiple entities, you create businesses that are more specialized, you can sub any work that you get through one company to another, and most importantly, you generate more exposure by creating seperate entities.
Listen, bottom line is this. You are probobly a web designer/developer/whatever. You need to know a little about everything (business, websites, taxes, law, sales, etc.) but have people that know everthing about little (that meens 1 thing like taxes or law) that guide you in the right direction.
To the author, I mean no ill will. You and the guys/girls at ALA take a lot of crap after spending so much time trying to help us. Thanks to all of you.
A business man who owns a web firm.