Business Plan Question

Bill · 2006-03-02, 06:45 PM

Unlike brick and mortar businesses, where you need insurance against trip-and-falls and the like, most adult affiliate businesses have fairly little risks from customers.

Most people "insure" themselves by socking away money for potential future legal fees, because potential lawsuits and defense costs constitute the most likely risk - but pure affiliates usually don't face either, I can't think of a single case in my years of doing this.

Protecting assets? well, the s corp is common, but again, I can't think of a single case in which the protections offered by a corp really were needed.

It all depends on how much debt you are thinking of incurring.

walrus · 2006-03-02, 07:46 PM

What Bill said...but the reasons to inc. aren't for liabilty so much as they are for the IRS. A lot of things that seemed to cause them tons of concerns when I was a sole, disappeared when I incorporated. While I haven't been doing the adult thing that long now, I have been in business for myself for about 6 years.

Bill · 2006-03-02, 07:56 PM

What caused them concerns as a sole prop that disappeared as a corp?

My experience has been the opposite, in general.

walrus · 2006-03-02, 08:52 PM

Maybe it was that I just got on the wrong side of an auditor or two but I don't get the questions about depreciating equipment, cars, etc. I used to as a sole. Also, since I travel a lot, I haven't been asked about those expenses as much. It seemed like as a sole, every 7 day business trip..or 14 or multiple there of got questioned as to amount of personal time.

Before I incorporated I was audited every year. Since, I have not suffered through a single audit.

Bill · 2006-03-02, 09:12 PM

That could explain it, even in my offline businesses I didn't do a lot of travel and entertainment expenseing. And since I don't go to the conventions I haven't had such expenses for my online business. Travel and entertainment are audit bait - so I tend not to expense the few things that I legally could.

So far I've not been audited - I guess that means I'm not being agressive enough in my expenseing. ;-}

walrus · 2006-03-02, 10:56 PM

I would compare an IRS audit to being analy raped by a cactus.

2006-03-02, 07:46 PM	#2
walrus Oh no, I'm sweating like Roger Ebert Join Date: May 2005 Location: Los Angeles Posts: 1,773	What Bill said...but the reasons to inc. aren't for liabilty so much as they are for the IRS. A lot of things that seemed to cause them tons of concerns when I was a sole, disappeared when I incorporated. While I haven't been doing the adult thing that long now, I have been in business for myself for about 6 years. __________________ Naked Girlfriend Porn TGP free partner account

2006-03-02, 08:52 PM	#4
walrus Oh no, I'm sweating like Roger Ebert Join Date: May 2005 Location: Los Angeles Posts: 1,773	Maybe it was that I just got on the wrong side of an auditor or two but I don't get the questions about depreciating equipment, cars, etc. I used to as a sole. Also, since I travel a lot, I haven't been asked about those expenses as much. It seemed like as a sole, every 7 day business trip..or 14 or multiple there of got questioned as to amount of personal time. Before I incorporated I was audited every year. Since, I have not suffered through a single audit. __________________ Naked Girlfriend Porn TGP free partner account

2006-03-02, 10:56 PM	#6
walrus Oh no, I'm sweating like Roger Ebert Join Date: May 2005 Location: Los Angeles Posts: 1,773	I would compare an IRS audit to being analy raped by a cactus. __________________ Naked Girlfriend Porn TGP free partner account

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2006-03-02, 06:45 PM	#1
Bill Selling porn allows me to stay in a constant state of Bliss - ain't that a trip! Join Date: Apr 2003 Posts: 3,914	Unlike brick and mortar businesses, where you need insurance against trip-and-falls and the like, most adult affiliate businesses have fairly little risks from customers. Most people "insure" themselves by socking away money for potential future legal fees, because potential lawsuits and defense costs constitute the most likely risk - but pure affiliates usually don't face either, I can't think of a single case in my years of doing this. Protecting assets? well, the s corp is common, but again, I can't think of a single case in which the protections offered by a corp really were needed. It all depends on how much debt you are thinking of incurring.

2006-03-02, 07:56 PM	#3
Bill Selling porn allows me to stay in a constant state of Bliss - ain't that a trip! Join Date: Apr 2003 Posts: 3,914	What caused them concerns as a sole prop that disappeared as a corp? My experience has been the opposite, in general.

2006-03-02, 09:12 PM	#5
Bill Selling porn allows me to stay in a constant state of Bliss - ain't that a trip! Join Date: Apr 2003 Posts: 3,914	That could explain it, even in my offline businesses I didn't do a lot of travel and entertainment expenseing. And since I don't go to the conventions I haven't had such expenses for my online business. Travel and entertainment are audit bait - so I tend not to expense the few things that I legally could. So far I've not been audited - I guess that means I'm not being agressive enough in my expenseing. ;-}