interesting read on LLC

toyotaguy · 03-28-09, 11:15

is it worth it to have an LLC over a sole-proprietorship in our line of business since most of us are one man businesses???

How Limited is Limited Liability? :: Limited Liability Company Center

Thoughts???

AeroCleanse · 03-28-09, 11:22

Quote:

Originally Posted by toyotaguy

is it worth it to have an LLC over a sole-proprietorship in our line of business since most of us are one man businesses???

How Limited is Limited Liability? :: Limited Liability Company Center

Thoughts???

I am the only member in my LLC.

toyotaguy · 03-28-09, 11:35

so why set it up that way? in regards to the online read, you (we) may still be held responsible personally since WE are the ones who worked on the car...

Thought?

Finish Line · 03-28-09, 12:06

We operate and insure all of our rigs under the LLC umbrella, there are a number of protections, which will vary by state and specific situation. As for tax purposes, again at least in our case, an S Corp would be a better choice. We also, have gone so far as to establish a company, which purchased our trucks, trailers and equip and has leased it to the detailing entity.

Drew

Jakerooni · 03-28-09, 12:30

I made mine an LLC for the tax breaks one can get over a sol prop and it also helps with future expansion with having employees that work for you. (which I usually do in the summer) And if I'm not mistaken there's a price break on an LLC over a sol prop for insurence.

Five_Star · 04-12-09, 07:16

First talk to your accountant then your attorney about what would be best for you. I have an S-Corp set up. If you have a partner you can both be 50% Shareholders and in S-Corp. S-corps are always less expensive to create. An LLC might beto your benefit if you plan to acquire companies or have the entity take ownership of other ventures.

Greg Nichols · 04-13-09, 08:42

I'm setting up an LLC this year, for the reason that my liability is contained to the business. In a DBA someone could sue you and your personal (home, family, etc)

GREG

toyotaguy · 04-13-09, 08:48

yeah, i am trying to get into a house this year, so next year I might just make the jump and setup the business as a LLC!

Jakerooni · 04-14-09, 06:39

Definatly talk to an accountant first though. What works for us might not fall into your plans. They can set you up with the right structure that fits your needs. I like the LLC's because I can use my money as I want. with a S-corp and C-corp you really have to be careful that all your money is documented as a business only expense. But they offer greater tax breaks so there's a definate pro/con for each different set up.

Shawn F. · 04-15-09, 07:00

Good advice here guys. I am not trying to take over this thread and this may help others but explain why you chose LLC or S-Corp. Why did you choose one over the other? I know it varies from state to state but still, any info helps. My plan is to go S-Corp. It will only be me doing work and occasionally I will have help once a week tops but that is later down the road.