Affiliate Marketing Income - When Should I LLC or Incorporate?


I am currently making a decent amount of income from affiliate marketing (people go to my site, click my link for product X, and if they buy product X, I make a percentage of the sale). I am wondering if I should contact an accountant since I am on pace to make over $100,000 this year ... all on the side.

If it helps, I have been using about 5% of my earnings to reinvest in my online businesses ... but it will probably be more soon.

LLC Incorporation Affiliate

asked Mar 30 '12 at 22:20
1,340 points
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  • Why wouldn't you contact an accountant even if you didn't make $100k? – Karlson 9 years ago

1 Answer


I would immediately set up an LLC that you are the sole owner of. I don't know much about the taxes side of things, so an accountant is the best idea in this situations. I make my recommendation because of liability.

Right now, if your customers have a problem with a product they bought after being referred by you, they can sue you personally. Not saying they will win, but it is your person they can come after. When you have a Limited Liability Corporation you have a basic level of protection.

This is from my experience starting an S-Corp, that I turned into a C-Corp, later sold and started 2 LLC's. I am NOT a lawyer, so this is not legal advice.

answered Mar 30 '12 at 23:35
Justin C
838 points

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LLC Incorporation Affiliate