How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Richard - Bizlaw Your Own Question
Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 10648
Experience:  30 years of corporate, litigation and international law
Type Your Business Law Question Here...
Richard - Bizlaw is online now
A new question is answered every 9 seconds

I just starting setting up a online business threw ebay. Its

Resolved Question:

I just starting setting up a online business threw ebay. It's a home business small. I don't know if I need to set it up as state corportion or proprietorship or do you know which one besides these. Do it need to be as inc or LLC.
Submitted: 8 years ago.
Category: Business Law
Expert:  Richard - Bizlaw replied 8 years ago.

You can operate in any of these forms. A corporation can be a C corporation or an S corporation. An S corporation is like a sole proprietorship in that the income of the corporation is treated as that of its shareholders. A C corporation is a corporation that is taxed as a separate person under corporation tax rates. Depending on the amount of income, the corporate tax rates are generally higher than for individuals. Both forms of corporations provide limited liability, that means, unless you agree to personally guaranty something, the corporation alone is responsible for its debts not you individually. An LLC is a limited liability company and has the same lilmited liability as a corporation but is treated for tax purposes like a partnership. In some states, a limited liability company can have a single member and then it is treated like a sole proprietorship. A sole proprietorship is you operating individually in business. There is no limited liability like a corporation or limited liability company. Your taxes are reported on Schedule C on your personal tax return.


Most people prefer the benefits of limited liability. If you use a S corporation, you get the benefit of that and get taxed as though it was a sole proprietorship.


If this answer is responsive to your question, please accept it. That is how we are compensated. I would also be appreciated if you provided feed back on your view of the answer. Finally, if the answer was especially helpful you can provide a bonus. If I can be of further assistance or you have other questions in the future you can ask for me and reach me at this site.

This communication is not intended as legal advice. A local attorney should always be consulted for legal advice. No client/attorney relationship is intended or created by this communication.

Richard - Bizlaw and 4 other Business Law Specialists are ready to help you