[Linda Buquet]

Nope not true either that you need an LLC. You can be joe blow sole proprietor and deduct all your biz expenses. I'm still a sole proprietor and have a much bigger business than many affiliates do. You still do a schedule C for all biz income and expenses just like any other business.

The main tax bene of incorporating is that you only pay tax on the salary you take out - not all the income that comes into the biz. (That's very simplified).

Even at my level of income my accountant recommends against me doing an Inc or LLC for tax purposes. He's super conservative though.

So I'm not saying don't do an LLC am only saying carefully review your options. The added paperwork and regulations may not be worth it.