LLC Or Sole Proprietorship

sase

Hello helpers - i was thinking to change my status from sole proprietorship to LLC seeing that i'm a small business, i just got my contractors license and is starting out small, any advise would be greatly appreciated.

Norrrrrrrrrrrrm

There has been a thread circulating here for the last few days on that subject. Type a couple of words in the search engine i.e. LLC, Sole Propietorship, and you should get a wealth of info on what you are looking for.

Dibi

You might want to talk to a CPA about the advantages of a Sub-S Corp. It's worth the money to get your co. set up correctly in the beginning. Try to find a CPA that specializes in construction companies. It's also helpful if they understand your software program - Quickbooks is wonderful.

Good luck.

Richard

I'm a sole prop now, but am switching to an LLC asap. The difference is when you are a sole prop someone can come after your business and your personal assets and property. When you are an LLC they can only come after your business. You're separated. At least this is the way my wife described it to me, and she knows her stuff...she's an insurance adjuster and hears claims day in and day out.

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Rich

AtlanticWBConst

This is absolutely right. It happened to a very good GC friend of mind, when a wealthy retired CEO screwed him over. He lost everything in his business, but his house.
He's back on his feet now tho. - He still kicks himself to this day, that he didn't protect himself by Incorporating. He is now.

FWIW - After consulting with our CPA, we chose to incorporate as an 'S' Corp. - over - LLC.

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AtlanticWBConst

Additional point - When you become a corp. you no longer are subject to the self employment tax. = $ savings $
LLC's with more than one active owner, are still subject to the tax.


Here's a link with more info, on forming an LLC:

http://www.gaebler.com/LLC-Advantages.htm


Some info. on forming an S Corporation:

http://www.entrepreneur.com/starting...icle77730.html

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