Having a t-shirt company has been going around my mind for a couples months now. My question is, do you recommend to start my passive Shopify online t-shirt company as an LLC. Do most t-shirt companies even register their company as an LLC?
You can start your business as a sole proprietor, you don’t need to be an LLC. You need to look at the advantages and disadvantages for everything.
An LLC protects you from liability, but then again why would you need to be protected or sued if you are doing everything legally (not using copyrighted material).
From the research I did into corporations an S corp offered the best tax deductions for a small business with it having “pass-through” taxation.
You have to pay the state you are in a certain amount every year to be incorporated and the taxes are more complex you would probably need a CPA. If you aren’t making a decent amount it just isn’t worth it in my opinion. I would just stick with a sole proprietorship until you have more money and it will save you money by doing it.
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