To INC. or LLC? (incorporation, liability insurance, small business, attorney)

[arguy1973]

I havent asked to many questions on this particular forum, but I have a question..I am planning on starting a business in Oct of this year, and I am seriously considering incorporating or going LLC, vs DBA. But it will just be me and possibly my wife starting out with this on a very parrt-time basis until I can build the business up. Mainly I just want to protect myself from losing my shirt, just in case..any suggestions?

[bande1102]

If I understand correctly, you're asking if you should INC, LLC, or operate as a partnership? I'd probably go with LLC for a variety of reasons, mostly b/c LLC still operates as a pass-through, taxwise. Also, at least in my state, it is much cheaper to form a LLC than INC. Also, with the LLC there's much less paperwork, no minutes, shareholder meetings, etc. The only reason I can see going with INC rather than LLC, is if you plan to go public and/or for financing reasons. There could also be issues with an LLC if you plan to operate outside of your home state.

I'd still make sure that I had the appropriate business liability insurance.

Of course, you could also consider an S corp (own set of limitations, allows pass-through, still more paperwork than LLC)

I'd also check with your state website as wells as score.org. Believe it or not, the IRS has a small biz resource center that is quite helpful, too. They'll even send you a small business resource cd for free. Oh, and I also like the NOLO books--have helpful info on how to legally protect yourself as well. Good luck.

[arguy1973]

Originally Posted by bande1102

If I understand correctly, you're asking if you should INC, LLC, or operate as a partnership? I'd probably go with LLC for a variety of reasons, mostly b/c LLC still operates as a pass-through, taxwise. Also, at least in my state, it is much cheaper to form a LLC than INC. Also, with the LLC there's much less paperwork, no minutes, shareholder meetings, etc. The only reason I can see going with INC rather than LLC, is if you plan to go public and/or for financing reasons. There could also be issues with an LLC if you plan to operate outside of your home state.

I'd still make sure that I had the appropriate business liability insurance.

Of course, you could also consider an S corp (own set of limitations, allows pass-through, still more paperwork than LLC)

I'd also check with your state website as wells as score.org. Believe it or not, the IRS has a small biz resource center that is quite helpful, too. They'll even send you a small business resource cd for free. Oh, and I also like the NOLO books--have helpful info on how to legally protect yourself as well. Good luck.

Thanks for the advice, aleady have the insurance liability covered, was leaning towards LLC, again thanks!

[jhlcomp]

Also take a look at:

LLC vs. S Corporation - S Corp - Single Member LLCs | LLC.com

Incorporate: Incorporation,LLC,Nonprofit - BizFilings

BW Online | April 8, 2004 | To Incorporate or Not?

Will Incorporating Benefit Your Business?

Good luck!!

[aiangel_writer]

arguy

my dh and I have been LLC for almost 15 years. It was advised by our attorney to go this route and we find no problem with it. Like the other poster said, there is less paperwork and what paperwork there is is fairly easy to manage.

aiangel

[harmonSmith]

For many reasons business incorporation is the safest, smartest choice for structuring a new business. Protection of personal finances, ease of attracting investors, and the tax advantages of corporations are all good reasons to consider incorporating a business rather than simply going it alone. I also incorporated my business through a business incorporation specialist Incorporate a business today. Affordable business incorporation services. Call (866) 992-5425 and I also recommend them to everyone.

[HIF]

How many membership units should be stated in the organizational minutes? The LLC will be owned by me alone.

If, in the future, I bring in one or two others as owners, should I start with, say 9 units? That way, I could bring them in, but retain majority control or all three of us could be equal owners.