Illinois domain holdings company...LLC, SCorp? Any experience??

[ab80]

hey everyone,

planning on setting up a domain holdings company in illinois and wondering if you guys could give me some feedback.

the main function of the company would be domain name investment and development under the same umbrella.

any suggestions much appreciated.

thanks

 

[airmax]

Get a good domain name

 

[Mark Talbot]

Rule number one,..

Walk carefully when reporting income and expenses to the IRS in general.

I have intimate exposure to the way the IRS treats companies, new companies, and domainers.

You got three years to show a profit, and you better have a delicate exit strategy in the event you dont make a profit.

And dont be foolish with the losses and expenses early on.

Just be smart and run it like a real business,... with a plan that leads to profit.

 

[ab80]

Get a good domain name

i am not sure you understood my question. it's a question about incorporation.

 

[airmax]

Well if your going to build a cache of domains, you need a good sales channel type domain, Best of luck

 

[ab80]

I have intimate exposure to the way the IRS treats companies, new companies, and domainers.

You got three years to show a profit, and you better have a delicate exit strategy in the event you dont make a profit.

Could you elaborate? I am coder and have worked independently with companies like Lexus, TruGreen etc...
I do have a regular income from development(for others) but this is going to be something that i wanna do with MY domains. i have a couple domains making a few hundreds a month (developed sites). i kinda wanted to regroup my domains under a holdings' company. i have seen people doing this in other states but not in illinois. i am an illinois resident and it's not the best place to conduct business...

 

[Mark Talbot]

I cannot give tax advice as I state I am not qualified nor certified to do so.

And I am only speaking on the federal level not a state level.

The only elaboration I can offer is I have seen more than one 'holding company' use their status to gain assets, with no attempt at making a profit, and use their corporate status to reduce income tax responsibilities in order to control these assets at reduced cost to them.

But some years down the road, the red flags will eventually catch up to them.

 

[Johnn]

Talk to an IP lawyer or CPA who specialize in IP (Intellectual Property).
You don't get free advice on legal matters (lawyer & accountant don't work for free) and if you do you would get wrong answers.