Help! S corp or sole proprietorship-can you give me some advice (fees, health insurance)

[nyrnwriter]

Hi everyone-
I could really use some advice. I have had an online store for a few years now and I sell awareness items (such as breast cancer awareness, etc). I have moved to florida and will most likely open a small gift store to supplement my on line business. I have done my market research and I think it will do quite well where we are.
We are just a 2 person business and will be for some time. Can anyone tell me what the differences in a sole proprietorship and a S corp? are there advantages to either? I have been stumped trying to figure out this..........which would you recommend? Also, we need to get some health insurace for myself and my employee- can we do so as a small business and if so, any ideas which are the best ones?
We could sure use any help that anyone could possibly give us. thanks

[harry chickpea]

An S-corporation and a good tax accountant are the way to go. Corporate filing fees in FL are $150/yr, and the advantages on income tax are absolutely stunning. You have to do the sales tax paperwork either way. Nolo press has a book on incorporating. Follow the instructions in it and save a few hundred and a whole lot of hassle.

As for health insurance in Florida - good luck. Unfortunately, the state has a perfect storm. It has many many rich retired seniors that go to the hospital for every ache and pain, a large population of poor who depend on hospitals, and lots of fraud in medical practices. Insurance rates are among the highest in the nation, and you won't be able to get a decent group policy, much less a decent one at a decent rate.