Hi. My name is ***** ***** I will be happy to help you.
It depends how much do you want to complicate your taxes
. The easiest form
would be sole proprietorship, but it will not give you any liability
protection from credits
. Profits and looses will be reported on your personal tax return
, subject to self-employment
You can register single member LLC, it will be still taxed as sole proprietorship but it will give you limited liability protection from creditor.
As LLC you can also choose to operate as S-corp or C-corp. If you choose any of this options you will have to treat yourself as employee of the corporation, meaning you will have to pay yourself reasonable salary and deal with the payroll. As S-corp (path-trough entity), all your profits and looses will be tax on your personal tax return, there will be no tax on corporate level. If you choose C-corp, all profits will be taxed on corporate level and than again as distribution
to you (double taxation
). You will not be able to offset your income
with the corporate losses.
Here's a chart of entities for tax purposes: http://www.nolo.com/legal-encyclopedia/ways-to-organize-your-business-chart-30065.html
Unless you want to corporate perks like 401K, profit sharing and such, I would suggest to start as single member LLC and you can elect S-corp or C-corp later if you want.