Where is your Revenue?

 by Jeanette Cates

 Faced with the unlimited possibilities for earning revenue from your online business, how do you structure your business?

For example, you can earn from - digital affiliate products - physcial affiliate products - your own products - resale products - adsense on content sites - consulting or other personally delivered services - recurring income services you provide - leading teleseminars or teaching classes and so many other sources!

So how do you decide on the appropriate mix for your business?

First, look at the reason you started your online business. If it was to build your visibility and credibility, you're likely to want revenue from your own product sales or your personal services. If it was to make a little more money, it may be from affiliate products. If it was to create a passive revenue source, it may be a combination of revenue sources. So revisit your purpose.

Second, look at your existing sources of revenue. For example, if you're already making money from affiliate product sales, it's relatively easy to ramp up that part of your business. On the other hand, if you've never sold an affiliate product, it may be harder to start that than to expand something you're already doing. Expand on your strengths, rather than spending time shoring up your weaknesses.

Third, look at your lifestyle. If you want a quiet source of revenue, you're likely to enjoy selling affiliate products and producing adsense content sites. Neither takes any customer support or personal contact, so you can maintain a low profile. On the other hand, if you want to work with people and gain a reputation as a leader, then you're more likely to want to provide a direct service, sell your own products, and lead teleseminars. Only you know what your comfort level dictates.

Once you have answered these three questions, then you're ready to outline your desired revenue sources. You may want to work on each of these revenue streams, but adjust the percentage of your income that comes in from each. For example, I know one man who makes 100% of his income from adsense content sites. A woman I know makes 30% of her income from her own products, 50% from affiliate sales and the remaining 20% from teaching and consulting.

Adjust your percentages over time. For example, while you may be happy with 50% of your revenue from consulting right now, you may not want to continue that level of personal service. So you'll increase your revenue from adsense content sites and affiliate products to replace the revenue from consulting - after all, it's hard to do a lot of traveling while you're tied to client services! So look down the road three to five years and start moving that direction now.

Your online business is your choice. That's one of the wonderful realities about doing business online. There is no one successful model - each person designs their own ideal reality. So examine the possibilities, define your ideal revenue mix and choose your own path to Online Success.

Copyright 2006 Jeanette Cates



Dr. Jeanette Cates is an Internet Strategist who works with independent professionals who are ready to turn their knowledge and their websites into gold. Dr. Cates offers a one-time Brain Dump Special for online business owners seeking guidance. http://www.YourInternetStrategist.com

Article Source: http://www.articlesphere.com/Article/Where-is-your-Revenue-/21885

LLC vs. Subchapter S Corporation: Which Makes More Sense for Your Business?

by Melissa Gordon

For years smaller businesses used the structure of an S-corporation to benefit from �pass-through taxation� while avoiding the double taxation imposed on a C Corporation. Then in 1988 the IRS decided to get in sync with several states which had passed legislation allowing the formation of a legal entity called a �Limited Liability Corporation� or LLC.

It wasn�t long until other states began to pass their own versions of this legal entity. Today all fifty states offer the LLC as a choice of legal business entity formation alongside the traditional C Corporation, Subchapter S Corporation, General Partnership, Limited Partnership and possibly others.

Are the differences between the LLC and S Corporation significant enough to justify all the hoopla? Let�s take a look and you can decide for yourself.

� Forming an LLC is much less complicated than forming a Subchapter S Corporation. A Subchapter S Corporation requires forming a corporation with the state then making an election to be taxed as an S Corporation (pass-through taxation) with the IRS. Forming an LLC simply requires submitting Articles of Formation to the state and creating a written document declaring how the business will be managed and operated.

� Corporations have stringent requirements for how they are formed and operated and an S-corporation is not exempt from these.

- Corporations must hold a formal stockholder meeting each year. An LLC is not required to do this. It doesn�t have stockholders.

- Corporations have a myriad of legal requirements around the issuing of stock and dividends. Again, an LLC does not issue stock to its owners nor does it pay dividends.

� An S Corporation is limited to 100 owners. There is no such limit with an LLC.

� All stockholders in an S Corporation must be U.S. citizens or residents. LLC owners do not have to meet this criterion. In fact, even other business entities are allowed ownership in LLCs.

� Profits are split among stockholders in an S Corporation based upon the number of shares held by each. Profits from an LLC may be split among the owners disproportionately to each member�s percentage of ownership. What a concept!

As you can see, there are quite a few differences to consider. Your set of circumstances and the vision held for your company will determine which entity can best serve those interests and purposes. It is possible that the S Corporation structure will cost more to form as well as to operate to meet the additional state requirements of a corporate structure. However, each state varies in its requirements for formation and operation. The more obvious choice may not always prevail upon a more thorough investigation of all requirements and costs.

Before you embark upon forming your business as a Subchapter S Corporation or an LLC, be sure to seek adequate counsel from professionals who are well versed with each entity in your states of interest.

Disclaimer: This article is for informational and entertainment purposes only, and should not be construed as legal advice on any subject matter.

Melissa Gordon is the publisher of LegalBuffet.com, a complete online resource that compares the legal services offered by various online companies. Find the best company for your LLC formation needs at http://legalbuffet.com/llc-services /.

Article Source: http://www.articlesphere.com/Article/LLC-vs--Subchapter-S-Corporation---Which-Makes-More-Sense-for-Your-Business-/178871