I was ready to create an LLC today until I did some last minute research and ran across a couple threads from this website that gave me pause. I'm a California resident about to start an internet based business, which is basically an online gaming website with some advertising and a pay-for-points system. I was originally going to base my LLC in Nevada (through LegalZoom) because I thought that it would give some sort of tax break on any earned income from the website, however, from the posts here I see that it would not.

My questions are:

1) Is there any benifit to even creating an LLC for an internet based company if I am the only employee?

2) Would I actually get taxed more by creating an LLC for this website?

Thanks for any input on this...

You won't get taxed more if you form a single member llc. If you do it correctly you'll have more deductions and pay less taxes.