Small Business vs. Corporation: Which is better?
in Economy ·
Donna White50 said:¸
You can totally do both—nobody's stopping you from opening a corporation alongside your small business. 🙂
If you’re already working somewhere else and paying into social security/benefits, you shouldn't technically have to pay yourself a formal salary as the director of your own company, but... definitely run that by an accountant first just to be safe...🙂
Also, don't forget—if you're doing e-commerce, you'll need to meet certain requirements for a warehouse space. A warehouse for storage needs the same stuff as a retail spot—so we're talking commercial zoning, a restroom with hot water, a fire extinguisher, a first aid kit, getting the electrical inspections done, and all that good stuff...
Thanks for the input, but I'm fairly certain a warehouse isn't mandatory for an online store if you're just dropshipping. If you actually stock inventory, sure, the law says you need a warehouse, but let's be real: plenty of online shops keep their entire inventory in an apartment where the business is registered, and nobody ever bats an eye. They've been getting away with it for years. My situation is simpler: a customer orders, I order it from the wholesaler, and it goes straight to the buyer. No middle step, no warehouse needed—at least, that's what the local Small Business Administration office told me.
Regarding the dual setup: can I act as both a sole proprietor and the CEO of my own corporation? I'd want to pay my payroll taxes through the sole proprietorship since it's much cheaper under the flat-tax system. I'm still trying to wrap my head around how that works...