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/biz/ - Business & Finance

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16165708 No.16165708 [Reply] [Original]

I plan on creating an educational website with accompanying youtube videos and for tax purposes I want to keep the expenses and (possible) income separate from my personal account. can this be achieved just through opening a separate account with my current bank or do I need to create a business entity (llc)?

>> No.16165751

also if it grows enough to warrant the establishment of an llc, am I liable if I don’t create an llc from the very beginning? It will be strictly educational so I don’t foresee any lawsuits coming up but just in case. and any additional tips related to starting a website and/or youtube videos to generate passive income is appreciated

>> No.16165810

>>16165708
you are not required to have a separate account. but the irs does view "co-mingling of assets" as one of the things that "pierces the corporate veil" tho...
so if you take aggressive deductions (ie. trying to claim your home-office as an expense, mileage, computer upgrades, etc etc) and meanwhile have lots of co-mingled assets (your home office is also used personally or by others in household, computer is used personally, vehicle used personally,etc) than that will just be another tick in the box against you.
So basically, it depends on what you are going to claim whether or not it becomes a mark against you.

>> No.16166836

>>16165708
If the website is not supposed to bring profit, how exactly do you benefit from it?

>> No.16168028

He could mount it as a foundation for getting deducted from taxes, he only would have to spend 3k if I remember well and salaries count.
So he could pay himself.
Or maybe not because I'm not that familiar with USA tax system

>> No.16168286

>>16166836
the ultimate goal would be to generate revenue through ads on the website with google adsense and ads on the youtube videos. it’s more of a passion project so I’d be fine with just getting enough money to cover overhead costs but due to the relative lack of information about the subject on the internet I think it could bring good returns if I get the SEO right

>> No.16168319

>>16165810
thanks for the info, I’ll keep a separate account even though it’s not required. I want to have clear indication that my personal income/expenses are completely separate from the income/expenses from this side project